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Between Heaven & Hell 2
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1985-09-19
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I think I have a solution to the Japanese problem.
Instead of making America a protectionist state, why not take
the opposite approach and make it more competitive? It
involves this strategy: let everything made in America and
sold in Japan be tax free to American corporations. The plan
benefits nearly everyone:
It benefits the American consumer by allowing the sale
of inexpensive Japanese goods to continue in America.
It benefits American labor by providing jobs.
It benefits the American economy and government by
helping to end the balance of trade deficit and by
increased revenues through additional employment.
It benefits the Japanese consumer through lower cost
goods and services.
It benefits Japanese industry through cheaper raw
materials.
It benefits the Japanese by allowing a steady stream of
exports from their country to continue.
The only sector that might complain is the Japanese
government; worried about their world economic share. They
have no reason to complain. They have been protectionist
long enough, but you can claim that the incredibly strong
dollar makes taking such action fair and wise.
American businesses love to take advantage of a tax angle. I
think enactment of this plan will help bring more pressure to
bear on Japanese sales than diplomatic efforts.
You will probably have to stipulate that products, in order
to qualify for the tax free status, must be 100% made in
America, otherwise a few unscrupulous businessmen will have
all their sub-assemblies made abroad but do final assembly
here before export. That would not help as much as a 100%
made in America item, and the 100% rule would make you a king
with the labor unions without really giving anything to them.
Please do not listen to the pundits who would have you remove
military support from Japan. Japan is in a key strategic
position.
Also, ignore the reactionaries who would have you return
America to isolationism. That would only invoke a trade war
that would help few and hurt many.
I think you might find bipartisan support for this proposal.
I am willing to write a few hundred letters to support it if
you are!