business

In trickle-down Abenomics, some Toyota suppliers come up dry

14 Comments
By Yoko Kubota

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14 Comments
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Case in point of how trickle down economics don't work. The people at the top never let it trickle down, they just celebrate at having more money.

This is why Abenomics is and will be a failure.

4 ( +4 / -1 )

I hope not every automaker across the board is doing these practices. It sounds criminal to take advantage of parts suppliers.

1 ( +2 / -1 )

Utrack,

They are.

1 ( +1 / -0 )

Case in point of how trickle down economics don't work. The people at the top never let it trickle down, they just celebrate at having more money.

This is why Abenomics is and will be a failure.

In my case, the decrease in the value of the yen has increased my profits, which has allowed me to buy more stock, get a larger apartment, and buy more things for my family. "Trickle down" economics has given me and my suppliers more money, so for me it does in fact work.

For those further down the food chain, you have to remember that it takes at least three years for changes in economic policy to be fully felt in the economy. Abe has been in office for only one year.

Of course, Abenomics is not likely to save Japan. There is too much debt, too few people, and too much competition. The upcoming sales tax increase will likley erase any gains which Abenomics has made.

-3 ( +1 / -4 )

When profits are good these companies claim it's "too early" to raise wages. When things ease off they cut salaries. As a result the number of people who can afford to buy cars decreases every year.

4 ( +4 / -0 )

This is just temporary...people are purchasing big ticket items before the consumption tax gets raised in April. Once it's raised for a while at least, a lot of shopping is going to come to a standstill.

5 ( +5 / -0 )

Capitalism eats itself

0 ( +0 / -0 )

Toyota's suppliers may have to bring back the Brazilians whom they unceremoniously fired and kicked out of the country during the downturn. Then the suppliers could in turn squeeze their wages.

Gotta love the Japanese economic "miracle."

0 ( +0 / -0 )

Capitalism eats itself

With socialism there is often nothing to eat.

-1 ( +2 / -3 )

With socialism there is often nothing to eat.

If that were true, then how do you explain the socialist countries in the world having such a higher standard of living than the two main capitalist economies of China and America?

3 ( +3 / -0 )

" If that were true, then how do you explain the socialist countries in the world having such a higher standard of living than the two main capitalist economies of China and America?"

In case you are simply misinformed, China has a communist government but has allowed some businesses some freedoms, but it definitely is not capitalist in the classical sense.

As far as America is concerned, her socialist programs and political transition have transformed her economy into cronyism.

By "higher standard of living" don't you mean an even higher dependence on government welfare paid by even higher taxes?

These smaller companies are being driven further into serfdom. Before long, they'll just throw in the towel as they are not beneficiaries of government subsidy.

It's time to Shrug.

-2 ( +0 / -2 )

But the virtuous cycle of Abenomics - rising wages, prices and spending

Here we go again with the opinions masquerading as unbiased news. "Virtuous"? Says who? A truly virtuous cycle is when prices drop thanks to improved productivity (less labor to acquire more goods) and spending rises (increased sales thanks to lower prices) while accumulated savings maintains its value (for future spending).

The "rising prices" part looks a lot like the old "one of these things is not like the others" game.

2 ( +2 / -0 )

In case you are simply misinformed, China has a communist government but has allowed some businesses some freedoms, but it definitely is not capitalist in the classical sense.

The only thing communist about China and the Chinese government is the name of their political party. There is nothing else communist about the country or the political party. It is near unbridled capitalism.

By "higher standard of living" don't you mean an even higher dependence on government welfare paid by even higher taxes?

Sure the taxes are higher, but I mean the higher quality of life for the people in those countries. Just look to your neighbors in the north - a socialist country that pays much higher taxes, but is rated one of the top countries to live in the world. And look at Japan - socialist country, but low taxes and a high quality of living. Compare this to America where you people walk around shooting each other in the face, and until now, have left a significant portion of your populace unable to get medical assistance. And the rich-poor gap in America rivals third-world countries.

Give me a socialist country any day.

0 ( +0 / -0 )

"As far as America is concerned, her socialist programs....."

Can you name me a specific socialist program in America? GM, Chrysler, yes before, which were socialized under a conservative Republican president. (Under Obama, they've been turned back to the private sector.)

0 ( +0 / -0 )

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