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University Daily Kansan / Friday, January 24, 1992
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'War of words' with Japan
The Associated Press
Fiscal backlash may hurt economy in long run, some say
Some politicians are acting on the popular cry of "Buy American." But experts say a backlash against Japan, no matter how emotionally appealing, will have long-term disadvantages.
The war of words escalated this week when a Japanese legislator was quoted as saying that U.S. workersare lazy and illiterate. Yoshio Sakurauchi, speaker of the lower house of the Japanese parliament, later apologized.
After that, the Los Angeles County Transportation Commission scrapped a $122 million contract with an American subsidiary of Japan's Sumitomo Corp. to build rail cars for its transit system. The commission said it wanted to pursue the possibility of starting its own factory to produce U.S.-maderail cars.
"This will keep jobs from going abroad," said Los Angeles City Councilman Joel Wachs, a critic of the contract. "You will see this all over the country in how government contracts are awarded now. This will reverberate around the country."
how important Japan and the United States are to each other as trading partners.
A day before Wednesday's decision in Los Angeles, the town board of Rochester, N.Y., rejected buying a $40,000 Komatsu excavating machine. It cost $15,000 less than the American-made John Deer model, but town officials wanted to make a symbolic point about Sakurachi's rhetoric.
"It really irritated me to the point that I moved to reject the purchase of this equipment," board member Vincent Campbell said.
Next to Canada, Japan is the largest market for U.S. exports. Each year, Japan buys $40 billion worth of U.S. manufactured goods, including computer products, food, Gillette razors, McDonald's hamburgers, Coca-Cola and other goods, according to the Japanese Economic Institute of America.
Richard Florida, a professor at Carnegie-Mellon University, said it would be foolish to close U.S. markets to such Japanese goods as miniature computers and high-resolution television sets.
"If we cut this stuff out, we're going to have products that look like they were made in the state factories of the former Soviet Union," Florida said.
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