Review of Graeme O'Meara article in SER.
April 15, 2014
The article may be classied as an attempt in eld of economic history: author studied economic phenomena in the past and analyzed two types of prevailing economic system:
US pure capitalism and collective capitalism of
By doing this student covered several important aspects of business activity. First of all he emphasized uniqueness of the Japan's national system that has historically been true. That idea is supported by the fact that Japan economy did not fully adopt free market principles including independently acting rms, nancial market based on publicly available information and uid labor market that enhances technological information transfer.
Next particularly good point is revealing economic hierarchy: the interest of the Japanese consumers do not come rst in Japan, as they do in the US, the interest of the producer comes rst.
The problem is that author did not
specify on what expense it comes. For example, home grown rise is priced ve times higher than it is traded internationally.
This result in 50-60% rise in
families spending on food and it is not surprising that those extra money goes to support the cartel. Other spheres like construction, banking and farming are not exception and experience the same overpricing.
Another point author made is about absence monopolies in Japan which is arguable. It seems that it lacks of deep analysis: by showing only example of photographic market author omit the estimation of Japan Fair Trade Commission that shows that about 90% of all business transactions are among agents involved in one or another keiretsu which leads to articial price-xing. As an example: all retail banks charged exactly the same fees and oered the same products. Not surprisingly that most of the business activity of that type would be considered as violating antitrust law in US.
Furthermore, viewing US legal system as ...
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