Path: utzoo!mnetor!uunet!lll-winken!lll-tis!ames!mailrus!tut.cis.ohio-state.edu!bloom-beacon!mit-eddie!apollo!nelson_p@apollo.uucp
From: nelson_p@apollo.uucp
Newsgroups: comp.sys.ibm.pc
Subject: US-Japan chip pact
Message-ID: <3b3430a9.44e6@apollo.uucp>
Date: 1 Apr 88 15:33:00 GMT
Sender: user@apollo.uucp
Lines: 68
To: comp.sys.ibm.pc@news



 We may be getting a bit far afielfd of this newsgroup but:

>There is a basic assumption made in this response that I think is
>invalid.  Namely, that this is a free market.  My understanding is that
>this is about as far from the truth as possible.  Consider the following
>basic scenario:
>
>   1.  The Japanese government selects some new industry that they want
>       to develop.

>  [  more Japan - bashing deleted ]

 This does not explain the whole picture.   First of all, American
 industries get government breaks too, or at least they have in
 the past, in the form of tax breaks on R&D, accelerated depreciation
 allowances, big DoD contracts, etc.  The US also has cheaper raw
 materials and energy costs.  Furthermore, in servicing our domestic
 market they also have lower transportation and communication costs.

 A better explanation of why we are being beaten, not just in Japan 
 but HERE IN THE U.S., is illustrated by the following:

   A Hewlett Packard study a few years ago showed that Japanese 
   RAMs had a lower defect rate than ones from U.S. companies.

   At my last job we found that (U.S. made) SEEQ EPROMs (27256's)
   we were using had a dramatically higher failure rate the the
   equivalent parts from Hitachi.   We switched to Hitachi.

   Check out Consumer Reports magazine.  Look at the rate-of-repair
   figures for Fords, Chryslers and Chevy's and compare them to the
   figures for Toyotas, and Nissans.
 
   The Japanese have beat the U.S. to market with high-density RAMs
   for the last two generations of such chips.  
   
   Europe, which *does* all the government protection that you suggest
   has not fared any better against the Japanese than we have.  
                      
 American companies have been unwilling to make a serious committment 
 to quality even after paying lip service to it for the last 10 years.
 They have also lagged behind in research and new product development.
 They have abandonded whole markets (optics, photography, consumer 
 electronics) to the Japanese.  They stupidly refused to see the hand-
 writing on the wall and modernize and innovate to compete when the
 Japanese invasion started.  I can still remember when the Japanese 
 were developing modern, automated production methods, Zenith was
 promoting the 'advantages' of building their circuitry completely by
 hand in their ads.  
 
 It is not just the success of companies that is at stake here.  Our
 nation's economic future and even national security are at risk by
 U.S. companies' unwillingness to create higher quality products and
 bring them to market in a timely manner.  It was once said that 'What's
 good for GM is good for America'.  There is more than a little truth 
 in that.  GM's management, by failing to compete ought to be regarded 
 as criminals or traitors to their country.   Blaming the Japanese is
 not going to change the fact that they have better products, more
 advanced technology, and more loyal workers.   Their educational system
 produces a much higher literacy rate and more engineers.  Ours produces
 lawyers and MBA's.  

 We have met the enemy, as Pogo said, and he is us.

                                        --Peter Nelson