The Japan Economic system…is it good?
W. Edwards Deming taught a few people in Japan how to create the very thing that you need to know and to do in a time of rebuilding. Japan had a bankrupt system after WW II that could not be repaired and restarted. Everything that had been the foundational elements of their national system was proven to be fallacious. The belief in the divinity of the emperor and the divine wind that propelled Japanese imperialism failed because it was false. Similarly the philosophy underlying Japanese business was also false. A fundamental assumption held by the Japanese culture was that business is like a folding wall, if it were straightened, it would fall. Such a belief transfixes the gaze and prohibits the eradication of every error. Their system failed because the assumptions, the belief system, was false. A new approach had to be nurtured and developed to bring Japan out of the devastation they created. The Japanese could no longer violate the trust axiom.
The current economic meltdown is traceable to a world view that has been demonstrated as a failure across the globe. A similar economic axiom was violated by the Administrative branch of the US Government when bureaucratic practice replaced return on investment with nice sounding sentiment. The axiomatic reality is: when making an investment, if there is no expectation of a reasonable rate of return, the investment will fail to sustain itself. Our current problem stems from just such a failed series of investments. The failure was not because real property does not have value, an investment in real estate will still yield positive returns if all the other requirements of value and return are in place.
i want a loan..but if i don’t pay it doesn’t matter
The US Government forced lenders to make loans that would not sustain themselves because the persons taking the handouts could not meet the obligations of the loans. In the end a catastrophic cascade of defaults ended in financial losses that reduced the value of the entire system. One cannot violate the fundamental principles of life without creating consequences for someone in the interconnected ecology of the economy of life. Our national mentality regarding wealth and business in the US violates this basic reality with the same arrogance of the Japanese prior to their foolish imperialistic ventures that catapulted the world into the Pacific War of the 1940’s.
Different mentality different economies
The key to creating wealth in a weakened economic system, is not to repeat systemic failures, but to develop a proposition that offers true value to the market and to present that offer in such a way that it is desired for its extraordinary value. For this to be, the return on investment must be real, and the trust must be more than a pretty face and a seductive promise. Decision makers in a struggling economy are more wary because the consequences of misplaced trust are dire not only for the business entities involved but also for every human part of our global economy.
Business success really is as simple as finding what I call an ‘under-recognized’ or changing need and filling it in with wisdom, empathy, and understanding that no one else can demonstrate or display. In short you will be solving problems that other people may not even be able to articulate.
– Jay Abraham The Sticking Point Solution