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From: wolf@csclea.ncsu.edu (Thomas Wolf)
Newsgroups: comp.sys.amiga,comp.sys.atari.st,comp.sys.ibm.pc,comp.sys.mac,sci.electronics,comp.arch
Subject: Re: GATT declares U.S. - Japan chip pact illegal
Message-ID: <1641@ncsuvx.ncsu.edu>
Date: 31 Mar 88 01:22:21 GMT
References: <2441@unicus.UUCP> <1259@hubcap.UUCP>
Sender: nntp@ncsuvx.ncsu.edu
Reply-To: wolf@csclea.UUCP (Thomas Wolf)
Organization: Computer Science , NCSU, Raleigh NC
Lines: 42

In article <1259@hubcap.UUCP> rchampe@hubcap.UUCP (Richard Champeaux) writes:
>[deleted text]
>obviously doing something right, and if US producers can't do the same then
>they should get out.  In my opinion, I think that the fact that the asian
>countries have a much cheaper labor force is a significant factor.  US
>producers obviously can't just cut their employees salaries in half, so some
>would say that they should get out.  Ok, so we lose the IC industry, big deal.
>In the southeast the textile industry (which is the south's major 
>industry) is taking a beating from Korean imports.  If they can't compete,
>let them fold.  Everyone knows that the US car manufactures are having touble
>competing with Japanese imports and therefore make poorer quality cars.  Well,
>if they can't hack it, they should get out too.  Asian computer and perhipheral
>manufacturers are already beginning to overtake the market.  Bye bye US
>manufacturers.  Hmmm, we seem to be running out of industries.  Oh well, as
>long as we consumers are getting cheap products, no problem.  Ooops, we seem
>to be losing jobs and can't afford these products anymore, how'd that happen?

That's just it.  American companies which cannot compete in the world markets
SHOULD go out of business.  In the short term, it may seem that we're getting
the "raw" end of the deal, but in the long term (given a free-market) it will
all even out -- after all, we're buying these Japanese/Korean/Taiwaneese 
goods with American dollars and this paper is only as good as the country
that backs it.  If this country became as poor as you seem to predict (and 
those nations would stand by and do nothing), they would end up holding
worthless currency.
In addition, as the standard of living in those Importing nations rises, so
will the demand for higher salaries.  Those same nations will end up in the
same boat as the U.S. -- trying to compete with nations that can manufacture
goods cheaper.

I too am no expert on economic affairs, but I can see no good coming from
ANY governmental interference with this Free Enterprise System.  One need
only look into the recent past to see that governmental intervention did
more damage than good.

Of course, all the above are my own opinions/ramblings on the subject and
may or may not resemble coherent thought :-)


Tom Wolf
ARPA (I think): tw@cscosl.ncsu.edu
          or  wolf@csclea.ncsu.edu