My opinion of this week(628):
Bankruptcy of Chrysler
Despite weeks of intense negotiations, Chrysler failed to gain full support
from its lenders to avoid the first-ever bankruptcy filing by a major U.S.
automaker. Chrysler LLC filed for bankruptcy on Thursday and announced
an industry-changing deal with Fiat, after being pummeled by sliding auto
sales and unable to reach agreement on restructuring its debt.
President Barack Obama hailed the move as a critical step to 30,000 jobs at
Chrysler and hundreds of the thousands more jobs at affiliated suppliers and
dealers. I have a basic doubt about the recognition of President Obama.
I don't think Chrysler will be revitalized again as a major US auto maker in
short period of time by such move. It seems that several fundamental factors
for Chrysler's bankruptcy are not solved at all by the move at this time. The
same questions exist with recovery of GM that also requires a huge amount of
working capital from the federal government to avoid bankruptcy.
The bankruptcy of Chrysler and possible bankruptcy of GM had never even
been imagined until ten months ago. That started with the failure of US economy
last fall concerned with subprime loan crisis. But that happened with two of
those top US makers. That did not happen with any other major auto makers in
Japan and Europe. Why is this?
Crisis of those top two symbolized the failure of US business model in many
ways from my point of views. The failure of big two happened not because of
subprime loan crisis but because of fundamental lack of management capacity
of those big corporation. Both failed to meet the market needs in US and in the
world. The market needs are obviously energy saving compact car and/or eco-
car of low CO2 emission . Those big two firms are far behind to other major
manufactures in the world in this respect.
As to Chrysler's move, I was quite surprised to see the fact that UAW (United
Automobile Workers) has shared 55% of total stock of the company after
negotiation concerning medical care benefits and other labor conditions
including wages and other benefits. The union failed to get satisfactory
answer from the management on those issues but agreed to acquire 55% of the
shares of the company.
In long US history of business industry, has there ever existed such
companies the biggest shareholders of which is a labor union? I have never
heard of such case. In addition, the federal government is now 10% shareholder
of the company.
Fiat is said to hold total 35% of the share by the move at this time. Is that
good enough shareholding of Chrysler for Fiat that is expected to help Chrysler
to develop cars which meet market needs today ? What is the role of UAW and
the government in this respect? Does UAW just demand labor conditions to the
management and intend to leave other strategic management decisions to Fiat?
What is the role of the government as 10% shareholders?
It seems to be very strange structure at first glance provided that the
shareholding of Chrysler has been set in that way as reported by mass media.
I am looking forward to hearing many other analysis and logical comments
which may be made by a number of specialists, analysts of economy and
industries in US and other world.
2009/5/2
Tadashi HAYASE
My opinion of this week(629)
Short term and long term issue
I watched diet debating session concerning supplementary budget for
physical year 2009 by TV on Thursday. One of a lawmaker of Komei Party
criticized Democratic Party of Japan that asserts supplementary budget
is just for spending huge money for various short term purpose without
creating any long term result. The Komei Party man pointed out one
example. He said the budgets money scheduled to spend for IT education
at school is very necessary and good one. He said such spending is not
just distribution of money without any effects but with a big turns
in the long run.
I do not intend to criticize what this lawmaker said. I personally
think IT education, PC education at Japanese elementary, junior and
senior high school is behind to that of any advanced countries. This
feeling comes from my personal experience teaching PC at elementary
school and junior high school as a volunteer in the past few years.
There exists a kind of good PC facilities installed at schools I
worked with. They are not necessarily the latest models but good enough
to fulfill general purpose to teach PC at school. But they must be
renewed from time to time to meet the change of hardware and software
from time to time. Some of those money necessary to renew facilities
and software should not be cut in any case. I don't deny this necessity.
But real problem concerned with PC education at school is not like that.
When it comes to hardware and software, total cost of facilities is getting
much less than before. It is obviously true with hardware. It is also true
with software. There exists a number of free and good application software
as we see today. I believe that all public sectors including administrative
offices and school should utilize Linux rather than Windows as operating
system as far as their PC environment from now are concerned. It seems
there is no problem with it as far as the present level of PC technologies
are concerned.
What I want to say is this. The cost of hardware and software is not a big
question to pursue a good PC education at school from now on. The real problem
is the existence of good teachers in IT fields. The shortage of good
instructors is the most serious problem for any schools all over the country.
They don't talk about this at diet debate. I agreed with DPJ's assertion in
many respects on this issue. The problem is the same not only with PC
education at school but any other area in question.
The same thing can be said with other area such as medical, nursing care for
aged people, environment service, agriculture, and so on. The problems in many
of those fields will not be solved just by short term subsidies,giveaways and
so on. Long term consistent developments of leaders and professional people in
each area is very necessary. That is the whole point.
Although this is just general statement per se, supplementary budget plan
submitted by Aso Cabinet at this time is mostly just the distribution of money
for short term purpose , as I exemplified above.
Prime Minister Aso will probably dissolve the diet by seeing ruling fronts face
a lot of resistance from opposition fronts to pass the supplementary budget. I
think that is the way it it is. Now is the time that people should judge
which is right or wrong to decide future course of this country.
2009/7/9
Tadasi HAYASE
My opinion of this week(630)F
No problem with election process of new representative of DPJ
After sudden resignation of Ichiro Ozawa, representative of DPJ (Democratic
Party of Japan) on Monday this week, the election to elect new representative
has been set to be held on today, Saturday participated by all diet members
of the party. There are a lot of criticism on it from mass media insisting
the term of election campaign is too short and participation should not be
limited to diet members only .
The executive committee of DPJ explained that such election schedule and
participation had been decided based on the internal rule of the party
referring the case of sudden retirement of the representative of the party. The
term of election campaign was limited because the diet is now going on
concerning discussion on supplementary budget and other key issue. It is very
delicate time about political situation. The diet will possibly be dissolved
any time by Prime Minister Aso at this moment. DIP must prepare for it.
Regardless the explanation by secretarial authorities of the party concerning
such election schedules, there are a lot of criticism from mass media. I don't
understand why mass media is so superficial in the way of thinking. Most TV
news casters and commentators without exception criticized the election
process saying it must be the reflection of intention of Ichiro Ozawa who
resigned from the representative position by the severe pressure from public
opinion concerning contribution from Nishimatu Construction Company. Mass
media say the executive committee of DPJ has set such short term election
schedule so that Yukio Hatoyama, Secretary General of the Party will be
elected to a new representative to replace Ichiro Ozawa. It is another political
trick of Ichiro Ozawa who wish to keep his political influence in the party
even after his resignation.
May be so. After the announcement of such election schedule by the party,
Katuya Okada, Deputy Representative of the Party and Yukio Hatoyama, Secretary
General of the Party, declared that they would run for the election to be
held on Saturday. There is no doubt about the fact that Ichiro Ozawa strongly
wishes that Yukio Hatoyama would be elected as a new representative. Why not!
Hatoyama is the man who has supported Ichiro Ozawa during the time that he
was in a serious trouble with the Nishimatu case. But Ozawa's wish is not only
based on such sympathy but also on his belief that Yukio Hatoyama is legible
for new position by any means.
But at the same time, Ichiro Ozawa would never neglect the existence of Katuya
Okada as well. Katuya Okada is much popular with the popular vote than Yukio
Hatoyama and more importantly than Tarou Aso, Prime Minister of Japan. The
reason why Ichiro Ozawa resigned from the Party Representative is that change
of power will not happen if he continue to stay in the position. The change of
power is the most important purpose throughout his career as a statesman. He
would accept Katuya Okada for sure if he were elected to a new representative.
Ichiro Ozawa will convince to himself that chance of the change of power is
even higher if Katuya Okada were elected to a new representative.
The decision will be made today. I believe that either Yukio Hatoyama or Katuya
Okada can defeat Tarou Aso in coming election although I personally expect
Yukio Hatoyama will be elected to top leader from many reasons.
Regardless this move of DPJ, Prime Minister Tarou Aso continues to stay in the
position and will not dissolve the House of Representative until early August.
The result of the election at such timing is rather obvious. Tarou Aso and
ruling fronts will lose the power for sure. The change of power, the ultimate
goal of Ichiro Ozawa and his party will surely happen in that case. It is my
belief and my wish.
2009/5/16
Tadashi HAYASE
My opinion of this week(631):
Expectation for debate session by two top leaders
One of the most important step to go into general election expected on and
around August 9, two major parties, Liberal Democratic Party and Democratic
Party of Japan plan to hold several debate session at diet by two top leaders
of each parties. The debate by Prime Minister, Tarou Aso and Ichro Ozawa,
Representative of DPJ was to be held Wednesday two weeks ago but that was
cancelled due to sudden resignation of Ichiro Ozawa from Representative
position.
A new debate session between Prime Minister Tarou Aso and Yukio Hatoyama, new
elected Representative of DPJ has been set on Wednesday this week. While
Ichiro Ozawa was not quite eager to do such debate session at this time for
he was in some difficult political position concerning the arrest of his
secretary by Tokyo Prosecutor Office on illegal contribution from Nishimatu
Construction Company, Yukio Hatoya expressed to conduct many of debate session
from now on until general election expected in early August. That is good move
for Japanese politics for such debate session will become a very good
opportunity for both parties to explain their manifests for coming election.
Prime Minister Tarou Aso welcomed the offer from Yukio Hatoyama and expressed
his ideas to bring up two main topics that he believes to be very important for
point of interest in general election. The one is increase of consumer tax that
is an important source of fund to conduct a number of social security programs
and to attain several economic growth programs. Tarou Aso intends to criticize
Yuki Hatoyama who insists DPJ has no plan to increase consumer tax in next
four years or so provided that DPJ would assume a power after the election.
Yukio Hatoyama even denied to discuss the possibility of increasing tax during
this term while the Party is in a power.
Such statement by Hatoyama seems to be a good attacking target for Aso. Aso
will attack Hatoyama by saying that Hatoyama and DPJ are very irresponsible
for presenting many of securities programs and others without showing any
source of fund to support those programs. The increase of consumer tax is
inevitable to perform many of such manifests provided by DPJ. DPJ is the party
that has no virtual capacity to administrate the country contrary to their
LDP that has administrated the country very successfully so far for long time.
Tarou Aso will argue that way.
Yukio Hatoyama surely knows Tarou Aso's approach. He dares@deny the
necessity to increase consumer tax to clarify the difference on basic stance
concerning administrative reform to attain some drastic cut of expenditures
in national budget between LDP and DPJ. Hatoyama intend to stress the
importance of cut of expenditures before talking about tax increase. Tax
increase will be accepted by people after some drastic cut of administrative
cost which has been spent in vain by the present administrative scheme
referred to as central bureaucratic system of Japan. Yukio Hatoyama and DPJ
insist the cut of such administrative cost come first by changing Japanese
political and administrative system from central bureaucratic control to
distribution of power to local decentralized governments. Some twelve
trillion yen money will be saved if Amakudari ( descend from heaven into
executive positions) by bureaucrats was abolished among current central
government administrative world. I personally agree with the approach of
DPJ and Yikio Hatoyama concerning this issue of consumer tax.
Second key issue for Tarou Aso in the debate session is the defense of
this country. He will bring up the statement made by Ichiro Ozawa several
weeks ago. Ichro Ozawa said that presence of Seventh Fleet of US Navy at
Asia is good enough for the safety of Japan. Several leaders of ruling
fronts including Tarou Aso criticised this Ozawa's statement saying that
he lacks the basic sense of national security as a top political leader
of Japan. Although Ichiro Ozawa resigned from the representative of DPJ,
Tarou Aso will bring up this Ozawa's statement as a sample of irresponsible
stance of DPJ concerning national defense .
Yukio Hatoyama has no problem to answer to such rather primitive approach
approach by Tarou Aso. Yukio Hatoyama will stress the importance of overall
review of defense issue of this country, including the issues of Japan US
Security Treaty. While there will be no basic change on Japan US Security
Treaty even the change of power happened in August, there will be many
diplomatic change on the relationship between Japan and US any way. The
defense policy of Japan may be reviewed in relation of the change of power
in Japan. There will be some big change on the side of US without doubt
for the change is already happening by President Obama.
Japan should be more independent from US any ways in any respects as a
results of changes in US and probably in Japan. The statement of Ichro
Ozawa is just a small example to mention the necessity of basic review of
overall review of diplomatic relationship between Japan and US including
Japan US Security Treaty.
When it comes to topics of debate session by two top leaders on Wednesday
there exits a lot more important issues rather than those two in the short
run and in the long run. Supplementary budget plan will be a primary concern
for both two but they should debate more about long term issues such as
social securities plan, employment plan, ecologies, agricultures, dwindling
birthrate and an aging population, so and so forth. Administrative reform and
decentralized localization of the country are main issues and related with
all of those important themes.
People wish if they could hear the basic philosophy of their political
stance to pursue all of those concrete manifests of each parties. While Yukio
Hatoyama states "Yuai (friendship)" is his basic political philosophy as such,
Tarou Aso says none about it. We wish we could hear about his in coming
debate session.
All of those topics and theme are too large to discuss at one or two
debate session. My suggestion is that at least five or more debate sessions
bill be made at diet before the general election expected in another two
to three months. Through those sessions, Japanese people will hear more about
the difference of the manifests of two major parties and will make better
decision making in the election.
I really wish the change will also happen in this country as a result of such
debate session at diet which will start on Wednesday next week.
2009/5/23
Tadashi HAYASE
My opinion of this week(632):
Many more debates to come
On Wednesday, May 27, there was NHK TV translation of the diet debate session
by two top leaders. I watched the the whole session from the start to the end
for about 45 minutes. There were several top leaders' debate by two major
parties in Japan in the past and I had watched almost all of them. The
session by Prime Minister Tarou Aso and Yukio Hatoyama, Representative of
Democratic Party of Japan at this time was very interesting and good in many
respects compared with any ones in the past. The one at this time was at least
better than the one done at last year end by Prime Minister Tarou Aso and
Ichiro Ozawa, the then Representative of DPJ according to my appreciation.
There were, of course, several points which were not quite satisfactory due
to the shortage of time, but I think two leaders debated fairly well about
various topics from political points of views from each parties stand on. I
was personally satisfied with articles of newspapers which gave higher points
to Yukio Hatoyama than Tarou Aso concerning the evaluation of the debate
session at this time analyzed on various points of views. I think Tarou Aso
also did his good job to show the debate session of this kind is very
necessary to let people understand what is the main issue of concerns of
politics today and political stance of two parties on those key issues.
Compared with the articles by newspapers, reports by TV news shows are
generally very stereo type and inferior in quality.There were some casters
and commentators who made some good and appropriate comments about the debate
sessions but many of them made some kind of poor and some stereo type comments
about the session as so in the past. There are such examples as follows:
"Both debaters don't talk much about political philosophy of their own which is
the basis of their manifests they execute when they are in power. "; "No
concretes policies and manifests were not shown in their debates on key issues
such as pension, medical cares, employment and so and so forth."; "Shouting
match was so bad that we could not even hear what two debaters were talking
about. The chairperson should stop such noisy hoot made by both side during
debating was going on."
Yes, I agreed with the last comments about shouting match. They were entirely
useless and those lawmakers who made such hoot are very shameful for that
conducts. Those lawmakers who make such conducts should be eliminated from
the list in next election.
On the other hands , I never agree with the first two comments made by those
commentators. Yes, both two debaters surely talked about their political
philosophy and some concrete manifests they would execute if their party
were in power although those were limited in many respects due to the
shortage of time.
Yukio Hatoyama talked about his basic political philosophy 'Yuai'Aspirit of
fraternity and Tarou Aso questioned about it commenting the word is too
abstract to understand. Yukio Hatoyama tried to explain about the word by
referring the community school at Mitaka City but Tarou Aso and many of TV
commentators seemed not to understand what Hatoyama talked about while I
personally understand what he meant to say about community school. That's
fine. I just like to confirm the fact that both surely discussed about their
political philosophy. The fact is that those commenter have no capacity to
understand about it.
As to the criticism about the lack of discussion in the debate concerning
concrete manifests, both discussed fairy well on several key issues. While
Hatoyama presented their party policy to ban money contribution from business
firm in next three years, Aso criticized the illegal money contribution from
Intimate Construction Company to Ichiro Ozawa former Representative of DPJ.
Hatoyama answered back to Aso saying why those money contribution made by
Nishimatu Company to many of lawmakers of LDP were not prosecuted same way as
Ozawa's case. Hatoyama criticized the fairness of prosecutors office that
possibly stand for the side of the one in power. This is very critical issue
as a matter of fact. Why mass media did not pay so much attention on this?
In connection with this, Hatoyama criticized how the supplementary budget
now under discussion at the diet include a lot of wasteful spending which have
been prepared by central bureaucratic organization. The present Aso
administration is not making any good politics for people of Japan but just
serving many policies for the sake of those bureaucrats and for a number of
government affiliated corporation to which so many number of bureaucrats
go to work to gain high positions and to gain high income. Total 12 trillion
yen is spent to keep such government corporation every years. Hatoyama
criticized the fact that such waste should be eliminated first before
preparing such supplemental budget.
Well, the discussion on supplemental budget itself like this is very important
one which show the difference of political stance of ruling fronts and
opposition fronts at this moment.
The debate between Aso and Hatoyama at this debate session has surely covered
the discussion on such basic political issue from now on. I don't understand
why many of those mass media especially TV do not report more precisely and
analytical on those key issues in their reports. They just underestimate the
value of the debate session.
I appreciate the debate by two leaders at this time was very good one as a
first step for the future. It is fine that both parties agreed to continue
this debate session as many as possible before the general election which may
come soon in next two to three months. People in Japan will have better ideas
about how this country will be rebuilt to select next administration through
those two top leaders' debate.
2009/5/30
Tadashi HAYASE
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