Path: utzoo!utgpu!water!watmath!clyde!rutgers!mit-eddie!uw-beaver!cornell!rochester!udel!gatech!mcnc!decvax!decwrl!whyvax.dec.com!kruger
From: kruger@whyvax.dec.com (Hart for CCCP chief in '88)
Newsgroups: comp.sys.amiga
Subject: Tarriff wars
Message-ID: <8801081555.AA18687@decwrl.dec.com>
Date: 8 Jan 88 15:55:47 GMT
Organization: Digital Equipment Corporation
Lines: 22

Yes, artificially inflated high prices are bad.
Yes, protecting our industry is important.

BUT -- you can't go on protecting a weak industry forever. American silicon
manufacturers have to sink or swim on their own; the government is really out
of line to protect them with tarriffs, because in the long run, that leads to
retribution, trade stagnation, and hostility all around.

I believe the best solution is to give fair incentives (not enormous, just fair)to electronics firms to form conglomerates for common research. Currently, our
industry is hampered by anti-trust laws. On the other hand, if you remove all
controls, various industries will begin price fixing. However, that cannot
happen when there is competition from OUTSIDE. In other words, I would like to
see the anti-trust laws waived for industries where outside competition from
huge conglomerates threatens the survival of "mere" corporations.

In order to survive a price war, you have to be big enough to ride it out. If
a few of the large semiconductor houses shared their major research costs, it
would be much easier for them to simply match the "lower than cost" prices.
Remember -- when the Japanese companies dump chips, THEY are LOSING money. If
you can afford to respond in kind, they will eventually stop.

dov