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From: dave@sdeggo.UUCP (David L. Smith)
Newsgroups: comp.sys.ibm.pc,sci.electronics,comp.arch
Subject: Re: GATT declares U.S. - Japan chip pact illegal
Message-ID: <185@sdeggo.UUCP>
Date: 1 Apr 88 10:49:28 GMT
References: <2441@unicus.UUCP> <1259@hubcap.UUCP>
Organization: Lazy Programmer's Society of San Diego
Lines: 39

In article <1259@hubcap.UUCP>, rchampe@hubcap.UUCP (Richard Champeaux) writes:
>      Japanese and other asian chip producers can currently produce chips at
> prices significantly less than US producers, and US producers are having a
> hard time competing.  This is just great for consumers and computer and 
> perhipheral manufacturers, but if it keeps up, US chip producers will have to
> move to something else or fold.  Many people I know say that the Japanese are
> 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.

Half of the problem is that American industry refuses to compete!  According
to a recent article I read, the US semi-conductor manufacturers have already
abandoned the 256K and the 1M markets.  They're targeting the 4M market now,
and what do you want to be that they will botch it, just like they did with
the 1M market.

Protectionism is not a solution.  Protecting the semi-conductor makers hurts
US computer makers, who _are_ still competitive on an international scale.
A similar situation is occuring in the steel market.  US steel manufacturers
are being protected with trade barriers, etc.  The US mini-mills (which
produce custom items from pig iron, not iron ore) were competitive, but are
now being forced out of the market because their raw materials are more
expensive.  Other manufacturers dependent on steel are also having a difficult
time, not only due to the expense, but because American manufacturers cannot
keep up with demand!

The US cannot compete at all levels.  Jobs which pay low wages are not 
acceptable to American workers.  Jobs which can realistically pay high
wages ($20/hour to put cars together is _not_ realistic) require high skill
levels.  Therefore, what we must concentrate on is industries which require
these high skill levels.  It's either that, or accept a lower standard of
living, but we'd better figure out which we'll accept while we still have
an economy.
-- 
David L. Smith
{sdcsvax!jack,ihnp4!jack, hp-sdd!crash, pyramid, uport}!sdeggo!dave
sdeggo!dave@amos.ling.edu 
Sinners can repent, but stupid is forever.