How America could be rebirthed: taking the lesson from General MacArthur


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How America could be rebirthed: taking the lesson from General MacArthur
10.29.04 (9:34 am)   [edit]
By breaking the Corporates which are equivalent of the arrogant Zaibatsu in pre-war Japan:

http://www2.gol.com/users/coynerhm/strang er_in_a_strange_land.htm" title="http://www2.gol.com/users/coynerhm/strang er_in_a_strange_land.htm" target="_blank"http://www2.gol.com/users/coy...

MacArthur had abolished the Zaibatsu -- the confederations of companies that had dominated the pre-war Japanese economy. These groups, the remnants of which survive today in the form of Japan's enormous trading conglomerates, created domestic cartels, manipulated supplies and prices, and generally established the long Japanese tradition of building a robust economy on the backs of submissive consumers. MacArthur blamed the war on the Zaibatsu and its leaders, who he banned from participating in their old companies, taking virtually all top managers out of the labor pool (they later returned, following the end of U.S. occupation of Japan, and ex-Zaibatsu leaders were mainly responsible for Japan's economic resurgence in the 1960s). With all the leaders gone, Sarasohn had to promote middle managers, when he could find them, into the top jobs.

...
Under Sarasohn's control, the Japanese electronics industry began to make slow progress. Yields rose over time as new production methods were adopted, eventually reaching around 75 percent for vacuum tubes (Sylvania, which set the world standard for vacuum tubes, had an 85 percent yield at the time). But there still wasn't a deep understanding of the need for quality.

"I remember visiting the Hirakawa Electric Company in Osaka (the company is today called Sharp Electronics). The manager wanted to show me that he understood my lectures about having a clean workplace," Sarasohn said. "He had hired a man specifically to keep the place clean. We found him in one of the big assembly areas. This fellow had a stick with a string coming from the end of it, and on the end of the string were a couple of pieces of ribbon. He was going around the assembly benches, flicking this stick, using the ribbons to push the dust around a little. The plant manager looked on proudly, thinking that his man was 'cleaning' the plant, and that I would be impressed."

On another occasion, Sarasohn made a surprise visit to the Tokyo Communication Engineering Company. He'd given the small company an important job, building a special piece of electronic equipment, but the project was long overdue. Travelling alone across Tokyo, he appeared without warning at the electronics factory, demanding to see the equipment he'd ordered. The owners were absent, parts were scattered everywhere and covered with dust. The special project, a radio station studio mixing console, lay about in pieces, barely begun. Furious with what he saw, Sarasohn exited without a word, leaving the workers in disgrace.

When they heard about the disastrous visit, the two founders of the Tokyo Communication Engineering Company hurried across the city to mollify Sarasohn. Their business was only a couple years old, and they didn't want its history to end that day.

The issue was quality. The plant was a mess. The special project was not only unfinished, the quality of work that its parts displayed was bad. Sarasohn gave them one last chance. "I told them to either mend their ways or lose their jobs," he said.

The Tokyo Communication Engineering Company later changed its name to Sony Corporation. The two men who came to plead for the survival of their company were Sony co-founders Masaru Ibuka and Akio Morita.

When the Second World War ended, American leaders thought their occupation of Japan might last forever. But by 1949, it was clear to Sarasohn that the Korean War was coming, and that the American occupation of Japan would soon end. If his work was to survive, he had to find a way of permanently instilling in Japanese industry some regard for quality.

...
After he set up the Electrical Test Laboratory, Sarasohn wanted to develop a course in American management techniques specifically for Japanese plant managers. But some members of the occupation forces opposed spreading U.S. production know-how to the Japanese.

The issue was decided in a 20-minute presentation before General MacArthur. The General had long before stopped following the letter of his original orders, which told him specifically to "not assume any responsibility for the economic rehabilitation or strengthening of the Japanese economy." Sarasohn argued that without better management, Japan would be a long-term drain on U.S. taxpayers. His opposition, the head of the Economics and Social Section, argued that the program Sarasohn was proposing could turn Japan into an economic monster that would threaten the U.S. in world markets.

"Go do it," MacArthur said casually on his way out the door, changing the course of world history.
 
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Newcomers, forgive my loose english - it's not my native language !

Book(s) I referred or will refer to in my posts:

Money, Whence it came, where it went
John Kenneth Galbraith.
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A Market Theory of Money
John Hicks (Nobel Prize)
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Strategic Factors in Economic Development
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The New Economics for Industry, Gove...
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Fashionable Nonsense: Postmodern Intellectuals' Abuse of Science
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Would-Be Worlds : How Simulation is Changing the Frontiers of Science
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A Universe of Consciousness: How Matter Becomes Imagination
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