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Strategies & Market Trends : Asia Forum
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To: Frodo Baxter who wrote (5790)8/23/1998 3:52:00 PM
From: kormac  Read Replies (2) of 9980
 
Lawrence, just to make sure that others know what you are referring to, here is the link to Krugman:

web.mit.edu

I agree with your sociological analysis of Japan, and also your cure and Zeev's Madison Avenue approach will also be cost effective, but not enough. Regarding productivity growth, I have these thoughts. Manufacturing productivity should keep increasing as it is a pure engineering issue. Service sector productivity growth is more difficult and the Japanese particularly have long way to go. Chinese increase in GNP is mostly caused by increases in inputs rather than productivity growth, as the article on the billion dollar suit surplus showed so vividly. So the task for the US economic engine is to keep concentrating on productivity growth. I do, of course, wish that we would also arrest the maldistribution of income, as this will come to haunt us in the long term.
Seppo
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