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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: Jack Kunkle who wrote (807)	3/27/1998 1:05:00 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 3902

Jack, I really did not intend on starting a big debate on this issue. Just allow me to clarify my point. I think the type of stimulants that Japan needs now are tax incentives for expansions. Many cities in the US have used and are still using this technique to attract businesses. China used it effectively during their run in the past 5-6 years and will be used more selectively to attract high tech expansions. Cuts on personal tax work well in cash strapped societies like the US. When we are all employed, not worried about losing our respective jobs, but have very little extra cash, then a cut in personal tax will certainly change spending habits. Same applies to corporate tax cuts. I don't think this is the case in Japan now. As an example, if a tax cut is going to cost them XXX yen, they would be much better off to use the funds to close banks, the way that RTC/FDIC did here. Robert "It's not the western world that is ramming the "tax cut" idea down Japan's throat. It's international finanical institutions. This is a global economy. If Japan wants to survive they have got to deal with external market forces." At the risk of sounding harsh, your statement reflects the insensitivity of organizations like the G-7 (or should it be 8 now), still going around telling the world what to do. Other than Japan, it is primarily a group of white colonialistic governments still operating with the idea that they know what is best for the world. Japan is going to do what is best for Japan. They have repeatedly demonstrated their will to repell foreign pressures. Good or bad, Japan will make their decision independently and I am willing to bet that Japan will survive, much better than what foreign instituitions think. Again, just my 2 cents. Ramsey