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In cash-rich Japan, a fifth of firms now see risk of insufficient capital

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By Tetsushi Kajimoto

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How can I not shed a tear for Japan Inc!

Theres a lot of money out there.

The 20% are the small one-man (woman) businesses that rely on regular physical customer interactions.

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So the answer to the second to last crisis of capitalism, in the 1970s, was to move from a Keynesian model to neoliberalism. When the last crisis hit in 2008 and neoliberalism was shown to be a failed approach, there was just a doubling down rather than a serious rethink because major governments have become corporate states. This latest crisis, at least in Japan and the US, appears to be another doubling down, with the people's and future generations' wealth flowing to investors and large corporations instead of taking the opportunity to shift to an economy for the people, of the people, by the people. We seem to like justice, an equal opportunity to participate in national and local government decision making process, and a fair share of public goods in our society. That is to say we still seem to value democratic processes. So why don't we also have these in our working lives?

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@warispeace that last sentence that you said, was a very good point. Or at least, I especially agree with that last sentence.

Even though I didn’t agree with everything you had to say in your comment, I definitely sympathize with what you’re saying, about doubling down with neoliberalism. The reason why I don’t entirely agree, is that during this time when people are really struggling, we can’t afford to be too picky about what sort of economic model we want. What’s important, in the short term at least, is there get all these people that are out of work jobs again, and then focus on changing economic model later.

Yes, it’ll make it more difficult in the long run to change it, but would you like to be the one to say to all these people are desperately looking for work but they have to wait until we can change the model? I’m not trying to be rude or mean or anything like that, so please don’t take it that way.

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@JCosplay

Thank you for your feedback. You make an important point about the timing and speed. What I'm thinking is, for example, offering financial support to those laid off workers who want to build cooperatives or when a firm is bailed out, instead of government getting a capital stake, provide workers with an ownership share so they could have more input into their own working conditions. Basically, leverage these conditions to enhance workers' rights and opportunities. Hope this clarifies a little more.

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"...but they have to wait until we can change the model?"

The model is being changed as we speak, regardless of whether policymakers or corporate exec realize it. Neo-lib policies are being quietly abandoned. Mr. Abe isn't talking much about "free trade" like the TPP or "market liberalization" much these days, you may have noticed.

Instead, it's about massive govt and central bank intervention. Pursing "free-market" policies at this point would sink our economies once and for all.

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The model is being changed as we speak, regardless of whether policymakers or corporate exec realize it. Neo-lib policies are being quietly abandoned. Mr. Abe isn't talking much about "free trade" like the TPP or "market liberalization" much these days, you may have noticed.

Koizumi and Abe has been privately touting themselves as students of Milton Friedman and Ronald Reagan, the asshats who are responsible for neoliberal hellscape today. Folks in Bank of Japan are students of Keynes with the mixture of neoliberalism. Abe, Aso and Koizumi idolized Margaret Thratcher who sold the British economy for American bidders. The UK does not produce and export much as their industries are taken by Europeans and Americans. The atrocious American healthcare firms are trying to kill the NHS as we speak. If this neoliberal future is what Abe and Aso want to bring upon the Japanese people, I expect Japan will become a Banana Republic.

Don't be mistaken! Abe and Aso aren't on the side of Japan as they are pickpocketing all the valuable wealth of Japan before escaping the country for good.

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The crisis just reaffirm Japanese companies strategy to save a large percentage of their profit.

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Folks in Bank of Japan are students of Keynes with the mixture of neoliberalism. 

Actually, they are hardcore Neo-libs, as they got their masters degrees in the US in the late 70s to 80s, when universities' economics programs taught the gospel of Milton Friedman, according to a German prof who once served as an intern at the BOJ.

Koizumi and Abe has been privately touting themselves as students of Milton Friedman and Ronald Reagan,

They are regretting that now, assuming they have an iota of a sense of reality.

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They are regretting that now, assuming they have an iota of a sense of reality.

Their biggest regret is the inability to commence a successful Olympics. I don't that anyone of Japanese politician has a sense of reality as most of them still think Japan is the center of the world like the 1980s. The only woke politicians in Japan are the Communists of the JCP because they exactly know the issues and rally people around it. Too bad, they aren't going to win because the US hates a wild card interference in the obedient world of Japan.

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I have learnt alot from japanese companies, it depends on how internationally, they run their business. In my 31 years in japan, i saw profitable companies actions, to state that they have no profit because they have the stamp of the accountant or the kansayaku.

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