It is a dead end that promote economy by free real estate market

               Frank  April 8 2015 in Waterloo, Ontario, Canada.

    [Introduction] Real economy relates to the production of goods and services that is the essential for human survival, and the financial economy is that makes money by money in nakedly say. The soaring up social conflicts mainly caused by increasingly difficult of people's lives, in which the financial economy over plundering on the real economy has been playing a significant role. 

    The real estate belongs to real economy with the potential of attracting investment to play a positive role by driving related industries. On other hand, due to it has better appreciation expectation for hedging against inflation, so people prefer it as a measure against currency devaluation with buying a house as investment for profit chasing in out of the need for living.

    Now, real estate has become a kind of predatory means to plunder on the real economy, since that over investments on the real estate easily push up the prices of house and land with pushing up the cost of the businesses operation and the people’s daily life, in this way, it has played practically destruct role for real economy and the life of those law-abiding people who are willingly to make a living by hard-working in creation of material wealth for human survival. 
    In Vancouver, the high price of real estate and high living costs are squeezing out the reel economy and the locals who have built the city to have made Vancouver as unhappiest city in Canada.

    The policy makers should reflect that whether it is rational to make revenue by allowing foreign investors to plunder through real estate market to ruin the real economy and the life of own national.

        Contents

    1. The motivation of the topic

    2. The real estate market is not only promote economy but also stifle economy

    3. The lessons of the Japan's bubble economy in 1980s

        3.1. The Formation of Japan's Bubble Economy in 1980s 

        3.2. It was that Japan-Gov punctured the bubble purposefully

        3.3. Why did the Japanese Gov. punctured the economic bubble

        3.4. Japan‘s economic recession is not the fault of suppressed the real estate market

           3.4.1. Japan used all means of Keynesian but useless for reviving economy

           3.4.2. What makes the economic powerhouse falling into economic quagmire?

           3.4.2.1. Bubble Economy degenerated the quality of Japanese

           3.4.2.2. The incredible lazy of Japan’s employees

           3.4.2.3. The Japanese disease ruins Sharp & Sony

              3.4.2.3.1. The decline of Sharp Corporation

              3.4.2.3.2. The decline of Sony Corporation

         3.5. High-quality of Japanese people before Bubble Economy 1980s    

    4. The overheated real estate market is destroying the real economy of Vancouver

         4.1. High housing prices sqeeze labors and businesses out of Vancouver

         4.2. Keep and attract young talent is the key for long-term success

         4.3. Real estate speculators would chase economic development zone crazily

         4.4. Vancouver and Canada needs to reenact development strategy

    1. The motivation of the topic

    April 7, 2015, the article Soho retailer Pearl River Mart shuttering Broadway store reproted that the 44-year-old Popular Soho retailer Pearl River Mart will close its location at 477 Broadway New York, when its lease expires at the end of December, its home since 2003.          

    Pearl River Mart currently pays more than $100,000 a month in rent – a figure that would increase fivefold if the company opted to renew its lease. The rents on the northern end of Broadway in Soho hover around $830 per square foot – up 9 percent from the fall of 2013.

     2. The real estate market is not only promote economy but also stifle economy

     I think of my Aug. 24, 2014 article Over-heated real estate market is ruining Canadian economy from Japan mirroring Canada, I excerpt as follow.

    The Real Economy is the part of the economy that is concerned with actually producing goods and services, as ostensibly contrasted with the paper economy or financial economy that is to make money by money.

    Today, there many social conflicts and crises are caused by that people's lives are increasingly difficult. In a large extent, the difficulties of life are caused by the over plunder of the financial economy on the real economy. In which process, the real estate has been playing a significant bad role. 

    The real estate is a part of the real economy. However, it is a wand with opposite magic that either can benefit or harm to the economy. In the financial economy is over developed today, in most cases, it harm to the economy.

    Due to the common sense of the real estate has a hedge against inflation with a better appreciation expectation, so people prefer real estate as a measure against currency devaluation. the purpose of buying a house is completely out of the need for living but pure investment for greedy profit chasing.

    Because real estate has the side in favor of economic development with the potential of attracting investment to drive the development of related industries to play a positive role in promoting the economy,  so that vast majority of the government are unwilling to rationally control its development. It even has been being taking as the indicator of the economic development.

    On other hand, the overheated investment on the real estate easily push up the prices of house and land, and thus pushing up the cost of people's daily life and the operating cost of the industrial and commercial businesses. Thus has caused extremely serious consequences - the destruction of the real economy, and the destruction of the life of those law-abiding people who are willingly to make a living by their own talent and hard-working for material wealth creation. Therefore, it possesses the potential of deteriorating economic environment to play a negative role of hindering economic development.

    Nowadays, in increasingly extent, real estate has been used as a kind predatory means to plunder on the real economy.   

    We should not forget the painful lessons that Japan's bubble economy in 1980s and the financial crisis 2008 are both speculative real estate related.

    3. The lessons of the Japan's bubble economy in 1980s

    3.1.. The Formation of Japan's Bubble Economy in 1980s 

    In the late 1970s, Japan's manufacturing technology on automotive and appliance developed a strong ability to compete with that of the U.S. and Europe, some manufacturers were among the world leader, and the products export to overseas in large quantities. It promotes the rapid rise of Japan’s economy.

    After the economic reform and open up of China, the cars and appliances of Japan began to export to China in large quantities.

    The Japanese, who have visited China, said with that: if China reaches the current technical level of Japan, it needs at least 30 years, China has 1.2 billion people, we can export stuff to China for many years. Therefore, many Japanese people believed that, in their lifetime, the economy of Japan will always be thriving.

    At that time, despite the economic prosperity, the living conditions of Japanese people have not improved in the same step.

    Since that prior to 1985, Japan's house is not fully commercialized. There more than 80% of ordinary working families are living in public houses, such as, the county barracks, the city barracks, and so on. In this period, the Japan Housing Corporation (JHC) was the largest residential provider, which was Gov.-funded in 1955.   

    Faced with the economic prosperity, in 1981, The Japanese government renamed the Japan Housing Corporation (JHC) as the Urban Renaissance Agency (UR), the core work transited into the construction and improvement of urban living and infrastructure from the directly providing housing, with the hope to take the chance of economic prosperity to commercialize the residential, thereby, to improve the living conditions while meeting the needs of residential personalization, as well as, to promote the sustainable development of the economy.

      In 1985, with the "Plaza Accord" forcing appreciation of the yen, the money value of Japanese people suddenly increased at least 20%, which prompting the government to start accelerating comprehensive implementation of the residential commercialization. The Commercial Banks, in large quantities, grant loans for residents purchase with slashing down loan rates. Thus, the housing prices of Japan began a rapid climb.      

     Thus, the bubble of Real Estate was quickly blowing up. The golden age of Japanese economy was emerging.    

     3.2. It was that Japan-Gov punctured the bubble purposefully 

    However, when the economic booming and most Japanese were madly busy of speculation in real estate market and with easily made unearned money to enjoy the prosperous with the life of luxury, in March 27, 1990, the Bank of Japan issued <Notice of Controlling the Total Financing Amount of Real Estate>. Later the Notice was known as the ignition point of the collapse of Japan's bubble economy. Then, the house prices and stock prices were both fell down. 

Further more, in the August 1990; the Bank of Japan increased short-term lending rate to 6%. But, those were not enough; the worse was still coming, in 1992, the Finance Ministry of Japan has introduced a land value tax to further push down the overheated real estate market. 
For the High-end retailing businesses, because, the shop is located in the city's most prosperous area, every year, the 0.3% land tax even valued 20% of commodity profits. The land tax resulted in a strong inhibition on the prices of the real estate.
    Thus, the bubble of Real Estate was quickly deflating down in Japan. The golden age of Japanese was disappearing.

The restraining force of the land value tax on the real estate market was significant.

    Why Japanese Government issued the policy of limiting the Financing Amount of Real Estate? Even. faced that the property market and the stock market has both started to crash down, in 1992, the Ministry of Finance still introduced the land value tax, to further crash down the market of real estate?
    Many people deemed that, it was that, after 1990, a series of improper restricting policies on the real estate market have pushed the Japanese economy into the quagmire.
    Well, whether the government of Japan was wrong?

   3.3.. Why did the Japanese Gov. punctured the economic bubble  

    In fact, the cause of the economic recession was not that of the policies issued after 1990, but, the policies for fully opening the real estate market in 1985 with the hope of maintaining the economy in high-speed development with the development of the real estate.

    As earlier as the period of real estate market hot developing 1985 – 1989, Japanese government has realized the severity of the mistake of wrongly opening real estate market. Those policies after 1990 were for the emergent corrections rationally.

    In 1985, the <Plaza Accord> further deepened the long worry of Janpanese people for the depreciation of the yen; they found that the real estate was the best way to hedge against inflation, with the fueling of the incentive policies of the government, the large sums of money invested in the real estate market.

   In the eyes of the vast majority of Japanese people; the land has become the most worthy assets for maintaining the value of their hard-earnings. Since then, the nature of the real estate began to change, from the need of living to be developed as the tools of the speculators for profit.

   Faced with such a large market demand, major Japanese banks launched fierce competing on loans for land. Typically, banks’ mortgage financing for land was about 70% of the evaluated value of the land, but, the loan of the Hokkaido Takushoku Bank even reached 120% of the land value.

    In the eyes of Japanese people, the real estate was gold mine to dig madnessly.

    With the rapid rise of the prices of the real estate, throughout of the Japan, the funds of investing in the real estate were more and more, the developing projects on real estate were more and more, and bigger and bigger.

    In 1988, many years’ high profit of the real estate industry even attracted the leaders of the Japanese real economy also to invest in the real estate, such as, the Toyota, Fuji Heavy Industries, Hitachi motors, etc..

    On the other hand, because of over-heated real estate speculation pushing high the price of the land, the second Tomei Expressway that was under construction difficult to continue, the operating conditions of the Japan Highway Public Corporation was worsening. Also, there various local public investment and construction were encountered difficulties.

    The wild development of the real estate has seriously impacted on the normal development of the economy. Thus, the debating about how to develop of Japan was more and more intensive. In general review, these arguments were primarily around three aspects:                                

    1. Whether the promotion of the development of real estate industry was in line with the basic national policy?

    2. Whether the development of real estate industry was able to maintain the prosperity of the Japanese economy?

    3. If the answer to both questions were "NO", then, what kind of economic model was suitable for Japan?

    From the appearance, the collapse of Japan's bubble economy was caused by the series of suppression policies of the government of Japan; however, the essence of those policies was the clear answer of the government for the hot debating:                                

    1. The promotion of the development of real estate industry did not comply with the basic national policy.

    2. The development of the real estate industry could not sustain the prosperity of the Japanese economy?.

    After World War II, Japan coined two basic national policies that were the basic farmland system and the revitalizing strategy by the development of the industry and technology.

    Socalled the basic farmland system was that Japan must maintain the amount of Japan's basic farmland to meet Japan's need for food self-sufficient. The over-heated development of the real estate was direct threatened to the amount of the basic farmland tenure.                           

    The revitalizing strategy by the development of the industry and technology was that, after World War II, faced scorched motherland, the Japanese government made a long argument on what develop-direction should be taken?. Once, considered to emulate the Netherlands as the trade hub between Asia, Europe and America, but, after the comparison between Japan and the Netherlands, either the number of the population and the external environment was far difference, so, the idea of the trade center was completely negated finally, and then, decided to take the development of the industry and technology as the developing policy.

    Japan is a country that resources heavily depend on the imports. For obtaining needed resources, Japan must exchange by the goods that other country needed.

     If, there more and more funds were invested in the real estate, the entire industrial structure and employment structure would tilt to the real estate industry, then, the manufacturing industries for earnings from export would decline continuously, and thus the needed resources that exchanged from other countries would be less and less.            

    More worse was that, in the 10 years, 20 years later, with the rise of the developing countries, Japan, a country with no advantage of the price in products, even, the advantage in technology would be lost, too. Since there no goods can be used for exchanging resources with other countries. So, essentially, the competition of Japanese people on real estate was just as that of the poor villagers who were fighting for the adobe thatched cottages with no electricity, no heating, no gas and no oil, which was mindlessly struggling toward more poor. 

    Although, the businesses and the people are both inseparable from the land, however, how much the value of the land should account for the corporate profits? And how much should account for the personal income? In this world, for such question, there was no clear standard.

    For the Japan, however, due to lack of natural resources, must use high-tech products to exchange, which was a firm commone consensus in Japanese society.

    It was obvious that drove economy by developing real estate, was already departed from the unchangeable policy of revitalizing strategy by the development of the industrial and technology.

    Luckily, the housing price of Japan has been led by Government since the establishment of Japan Housing Corporation (JHC) in 1955 until 1985. So, there were enough social bases for Japanese government piercing the economic bubble. 

    3.4. Japan‘s economic recession is not the fault of suppressed the real estate market

    Excerpt my Dec. 4, 2014 article Why did Keynesian fail in saving Japan's economy as follow.

    3.4.1. Japan used all means of Keynesian but useless for reviving economy
    June 4, 2012, in the article Japan’s Bubble Economy of the 1980s, the economic analyst and Forbes columnist Jesse Colombo who wrote with that: "By 2004, residential real estate in Tokyo was only worth of 10% of its late 1980s peak, while the most expensive land in Tokyo’s Ginza business district had fallen back to just 1% of its 1989 level in the same year (Barsky, 2009)."

    "Similarly, the Nikkei stock index is now trading around 10,000, just little over a quarter of its all-time high."

    "It has been over two decades since the popping of Japan’s economic bubble and the country is still actively battling with deflationary forces that are so powerful that near-zero interest rates, repeated bouts of quantitative easing (some call it “money printing”) and constant Yen-weakening currency interventions have barely made a dent."    

    Jan 6, 2009, on Japan Times, the report Lessons from when the bubble burst said with that: after the crash in late 1990, economic growth stalled various government-sponsored fiscal and economic stimulus measures, including trillions of yen in failed public works projects, did nothing to revive the economy. This was started roughly in 1991, when the effects of the stock market crash became clear.

    May 25, 2012, in the article The agony of Japan Inc. - Fortune, the writer Kevin Kelleher commented with that: Companies like Apple, IBM and Microsoft once stood in the shadow of much larger and more powerful Japanese electronics giants. Those days are long gone — and, lately, it looks like they may never come back.

    There are many reports about degradation of Japan's economic entities - the corporations.

    1. What has happened to once great Japanese companies like Panasonic, Sony, Sharp and Toshiba?

    2.  BBC News - What happened to Japan's electronic giants?

    3. The era of Japanese consumer electronics giants is dead 

    4. Why Are Japan's Electronics Giants Failing? | Daniel Burrus

    5. The Sad State of Japan's Consumer Electronics Giants

    6. What Ever Happened to Japanese Electronics? - Japan Focus

    What makes the former economic powerhouse falling into economic quagmire?

    3.4.2. What makes the economic powerhouse falling into economic quagmire?

    3.4.2.1. Bubble Economy degenerated the quality of Japanese people

    When talking about the main cause of Japan’s declining from the economic powerhouse? Most people would blame the Plaza Accord that forced appreciation of the Yen to cause Japanese products losing competitiveness and the Bubble Economy 1980s. But, that can not explain why that various government-sponsored fiscal and economic stimulus measures, including trillions of yen in failed public works projects, did nothing to revive the economy?

    The reason, as my view, all of those stimulus measures are from the macro elements of the economy, with ignoring the most basic micro elements - the driving force for the economic development - enterprising spirit and hard-working spirit of the social members and the businesses of main economic bodies. Or, we may say, that are the quality of the people, the work-ethic of the labor, the efficiency of the production and the capacity of the innovation.

    The Bubble Economy has rewritten the code of the DNA of the quality of Japanese people, from enthusiastic in hard working into enamoring in greedy speculating, thus, further affected the social moral and national’s spiritual, thereby cause the decay of whole society of Japan.  

    The easy gaining excessive profit from speculative activities have fueled Japanese speculative mentality with unearned ideological. It entices people keen to make living by speculating instead of hard working and less concerning on the interest of own company and most of Japanese people have lost the entrepreneurial spirit, hard-working spirit, and the rational sense of social responsibility and enterprises have deteriorated as lack of enterprising spirit and innovation dynamicI, such negative impact is more terrible, even fatal. 

    In essence, the national is the decisive factor for a nation’s economic development; a nation's economic decline is the decline of the quality of its national.

    Whether it is a business or a country, if its member is full of concerning for the self interest, without or lack of concerning for the public interest, it will doom to be extinction.

    So, I firmly believed that the impact of the Bubble Economy on the economy is just a curable social flu, but, the impact on the national’s spiritual is incurable social cancer.

    The fact of the Japanese companies loses competitiveness and falling into declining are the vivid proof. The shortsightedness and lack of entrepreneurial spirit of the management team, the lack of work enthusiasm of the employees is the main reason, and also it caused Japan's economy can not recover as expected.    

    3.4.2.2. The incredible lazy of Japan’s employees 

    An engineer of China who works for a German company in taking charge of the branches in South Korea, China and Japan, after working a while in Japan, he was shocked by the lazy of Japanese employees, and completely lost the good impression for them.

    Then he wrote an article post on the website and to be widely reproduced on the internet. I excerpt and translate some as follow. For facilitating narrative, here, I name the writer as Jim.

    The Japanese employees are working overtime almost every day, but, only for getting overtime pay rather than for the need of production.

    Jim arranged a simple task to a Japanese technician who dragged two days to finish. The same work, if, in China, a new graduated young man can finish just in half an hour.

     In a break time, Jim complains the matter with German colleagues, one German said, this guy is a good one, since he did not drag for a month as that of others. Another German even suspected that Japanese employee was dozing when working.

    Japanese employee did not like to take responsibility, when encountering some work trouble, usually; they will look for helping with endless complaining.

    German company plans to open new production lines in Japan, so, sent Japanese staff to Germany for training. The same project in China, within a year, production lines was already operating at full capacity in three shifts for 24 hours a day. But in Japan, it took two years still in the state of machine commissioning.

    The workers of China have mastered all the skills within the three months training in Germany. The German teacher said: you have learnt every thing on the training plan, you may go back to China now, and we have nothing for teaching any more.

    Japanese spent six months in Germany, but, after went back to Japan; they could not work properly, and complaining that Germans did not teach them well. Germans angered with that: in Germany, we were teaching you hands by hands, and you also said that you have mastered every thing already. The Japanese fought back immediately: Sorry, we forgot, our memory is too bad to remember that.

    Germans were angered and collectively applied for vacation to leave Japan as a protest. The German company had to allow them to China by the name of studying for appeasing their anger.

    Jim went back China with the German colleagues together. When they held a cup of coffee to watch Workshop through the window glass of the upstairs office, the production was in an orderly busy, workers were loading and unloading on the production line, the transportation-cars were running to and fro between the production sites and the storages.

    All of Germans was shocked and some even exclaimed with that: my God, here is simply a heaven. One of them said with that, they (Japanese) have been sleeping for 20 years, let them sleeping for another 20 years, then, Japan will decline as a developing country, and while, China will destine to be a developed country.

    Now, in many Japanese companies, employees are mostly 40-50 years old, rarely under 30. Many young Japanese are staying in unemployed. Besides the cause of the economic recession, the other cause is Japan's "special" corporate culture, which emphasizing work-qualifications and work-records, so that young Japanese have lesser work chance. Some girls have to do "compensated dating" for making money. Some boys also have to make money by doing “duck” - male prostitute. 

     3.4.2.3. The Japanese disease ruins Sharp & Sony 

     Mr. Kondo Daisuke, a scholar of Japan, who wrote many articles to criticize the Management Drawbacks in Japan's enterprises. He coined the term of "Japanese disease".

    The nature of the "Japanese disease" is the manner of "evading responsibility" that evolved rigid organizational structure and Inward Oriented Conservative of the Japanese Companies. The direct result of the "Illness" is that illed-companies will increasingly debilitate and ultimately collapse.

     Jul. 11, 2014, Japan's Sharp to post $141 million loss on Europe solar business.

     Sep. 17, 2014,  Sony predicts increased losses due to struggling mobile business.

    I excerpt some section from my article Over-heated real estate is ruining Canadian economy from Japan mirroring Canada – 2 as follow, to show the reason that Sharp and Sony declines. I hope that the lessons may play a role as a mirror to mirror the enterprises of Canada, to ask that Why? How?  

     3.4.2.3.1. The decline of Sharp Corporation  

    Sep. 11, 2012, Mr. Daisuke Kondo who published a Mandarin article <Angry Gou Tai-ming> onEconomic Observer Online of China, in which he criticized the “Japanese Disease” that harms Japanese companies. I excerpt and translate some as follow.

    A hundred years glorious Sharp Corporation has suffered "Japanese disease." It is not only the Sharp, but the Sony, Panasonic, NEC, Sanyo, Olympus, and great many Japanese companies are the serious patients in "Japanese disease".   

For example, a Japanese company planed to develop a new product. The product development department produced a "plan book", with depicting the grand blueprint of best market potential.

    However, when the "plan book" spreading in other departments of the company, this new product would face with dozens or even hundreds of blames, in the end, it did not get any support. The reason is simple: For the heads of departments, the most important thing is not how to bring new products to market, to improve the turnover, but, how to avoid the risk-taking of affecting own career in case of the sales of the new products is not good as expected.

    Because of the whole company have infected the disease of "evading responsibility", a lot of great new product plans have been put into the limbo. Meanwhile, in the process of this "bad model" iterative, the staff for new products’ R & D has gradually lost enthusiasm and morale, thus, resulting in the number of the plan for new products’ dropped. Nevertheless, the whole company still does not repent for that, keeping on its own way.

    Once cooperation with a Japanese business that suffers "Japanese disease", I believe, regardless, which leaders of China's company will be angry as same as that of Gou Tai-Ming.

   Assuming, a Chinese company raised an advantageous cooperation projects for both sides to a Japanese company, the local subsidiary of the Japanese company will immediately report to the International Department of the Japanese parent company. At this time, the International Department will require the local subsidiary to present a "plan book" as long as hundreds of pages. Just for completing this "plan book" will be going to spend a few months of time.

    Then, after the negotiations with various departments in the head office, which cost more than six months usually, luckily, the "plan book" may finally appear on the meeting of the Board of directors once a month in the head office. However, most probably it will suffer the fate of being sentenced to death, because of all the directors are not concerns the plan book from its feasible or not, but, from the "how to use the plan, for their personal interest, rather than the interest of the company.

    If, some directors believe that the implementation of the plan was no benefit for them selves, or own competitors in the company can get more benefits, they would oppose without hesitation and then put forward some reason to postpone the decision and ultimately to make the plan was dismissed or forced to ‘another day another meeting’, without the rational sense of caring about the interest of gaining or losing for the company." 

    3.4.2.3.2. The decline of Sony Corporation 

    Feb. 6, 2014, Japan’s scholar Daisuke Kondo published another Mandarin article The sundown of Sony:Doraemon or Crayon on a website of China, in which he criticized the ridiculous management that has been ruining Sony Corporation.

    “I remember that of my college days, only the best students in science majors can enter Sony. When going out of Japan, regardless of which country, we were able to see "SONY" huge billboard and young people using "walkman". At that time, Sony is our Japanese pride, however, now?”

    "For this problem, one of my college classmates, now a Sony employee replied with that: "In the company, there one by one meetings are from morning to night, after the meetings, everyone must deal with at least 100 internal mails from the company. So, Sony is not an electronics manufacturer, but a downright bureaucracy! Only those people, who are the 'Mr. Nice Guy' without any faults, could be promoted. Such a Sony could not develop new products that can shine the world any more?”

    "Our company has a specialized team in charge of new product development against the rival of Apple of the United States. There was I admired executive who is in charge of the team. One day, his immediate leader of a director of Board even ordered him to stop the investment of 'no value' (ie, to give up the R & D) as soon as possible to vanquish to Apple. The executive retorted: Do you have self-esteem as a member of Sony? The Director even contemptuously asked: ‘your self-esteem can help company making money, right? Heard of the answer of a director of Board, the executive immediately decided to resign."

    "In recent years, the elite who left Sony were not only the executive alone. In 2006, the former managing director who was responsible for "AIBO" R & D of futuristic robots was demobilized; the reason was that there members of board were questioning that ‘How much economic benefit that the robot R & D can bring to Sony? In 2007, former chairman and CEO of the Sony Computer Entertainment Inc., Mr. Ken Kutarag who known as the "Father of the PS (PlayStation)" was also retired after the expiry of his Job tenure.”

    "In the booming period of before, Sony company once gathered a large number of ‘Doraemon’ talents - they can come up with all kinds of whimsy from their "Mind Treasure Bag", and then to materialize them into a variety of future products. But now, unfortunately, the Sony is filled with the people who work with lips only as that of the ‘Crayon’ ”  

    3.4.3. High-quality of Japanese people before Bubble Economy 1980s 

    Now, I think of a story in Mandarin long time ago, the famous American marketing authority Philip Kotlerwho once said that: For Japan, what is the panacea to heal its wounds of the war, to stand up on the war-ruins, and to become the economic powerhouse? For achieving economic advantage, Japanese waged the war, but, failed. From the pain, they learnt that, the use of economic means can achieve more brilliant achievements than that of the use of the military. This means is the marketing.

    The economic miracle shows the high-quality of Japanese people. Following is a story about it.

    In morning August 19, 2013, I had a chat with the father of my new neighbor in Waterloo, Ontario. He said that his brother once was a top executive of a Canadian Steel Manufacturer and had twice visited Japan for learning the experience of the advanced corporate management in 40 years ago. His brother appreciates the good quality of Japanese people very much with a comparison between Japanese and Canadian in case of production accident.

    When facing production equipment fails, any Japanese operator would immediately stop the production, and then, all of the people gathered together to make diagnosis and treatment, after troubleshooting, everyone immediately went back own position to resume the production. But, the Canadian was just blindly standing, there no one was attempting for troubleshooting.

    Following are some memories about the industrious noble quality of Japanese people. I could not recall the source of them already, but the facts are true.

    When 1973 oil crisis, the plant of the Sony Corporation was shutdown and the workers were staying home waiting for notification of work. However, the workers went back to plant to do some thing available voluntarily with the hope that company could survive.

    Mr. Kazuo Inamori, the founder of Kyocera Corporation of Japan. In the newly established period of the company, a customer ordered special shape of water pipes, because there was no prior experience in the production of such pipes. In the process of heating and forming to required shape, the water pipes were burst. Then, Kazuo Inamori was holding the pipe when sleeping at night and slowly turning the pipe, so that pipes was heated evenly, and made it into required shape finally.

    Now, we have convinced that it was that industrious noble nature of Japanese people created Japan's postwar economic miracle.

    People may ignore an important fact that the birth of the Plaza Accord is also a proof that made in Japan was once invincible and swept global market, and also is the proof that the high quality of the employees and enterprises of Japan.

    Supposing that the employees and the enterprises of Japan still remained the spirit of entrepreneurial and responsibility, and still in hard working, today's economy of Japan will still be over that of Germany, and those made in Japan will be still invincible and sweeping global market.

    This is one of the main reasons that Japan’s economy has been long-term downturn. And it is why that the Three Magic Arrows of S hinzo Abe did not achieve the desired results.

    From above lessons, I firmly believed that, no doubt, such Japanese diseases of the employee lazy, the "evading responsibility", and more, is an objective results of the Japanese subjective selfish ideological, which was developed from the Holy Baptism by Japan’s Bubble Economy 1980s.

    The aftermath of the bubble economy is still hurting all aspects of Japanese society, from the social ideological to the personal spiritual, from the macro national economy to the micro family life, from the world class companies to the ordinary employees, and more.

    The sad facts of Japan made me firmly believed: it is that the quality of employees decides the fate of the enterprise. It is that the quality of the nationals decides the fate of the nation. And it is that social moral, social ideological impacts the quality of the national in a great extent.

    Japan, one misstep in opening real estate market, can not get rid of the nightmare of the bubble economy. 

    4. The overheated real estate market is destroying the real economy of Vancouver

    Due to the suitable living climate, political and economical stability of the Canada-based, Vancouver City is favored by the real estate players. The negative impact of overheated real estate market on the local economy is more and more prominent.

    4.1. High housing prices sqeeze labors and businesses out of Vancouver

    In the morning, Apr. 14, 2014, I read the article  Foreign property buyers restrictions needed and was moved by the rational views of Mr. Peter Ladner on the overheated Real Estate in Vancouver.

    In April 2011, he once told CBC News: "If our prices are being driven up by people who are simply investing in our community and not living here, there are a whole lot of problems that result." He worries that prices are forcing people raised in Metro Vancouver to move elsewhere and preventing others from moving to the area.

    In the interview with David Berner on Shaw cable television, 25 May 2011, Peter Ladner said that:

    "I think about my own home that I bought in 2000, it's worth about four times what I paid for it now. …I have four kids, three in their twenties and one in their thirties, and they're never going to be able to afford to live in Vancouver because they're not already in the market."

    "I heard a story, a company wants to expand, they need workers, they can not find them here, because all the young people here in somewhere else, because they can not afford for living here. They hire people, recruit people from Toronto and other area, the people take one look at house price and they say that I can not move here, so now the company in thinking about moving to Waterloo."

    "We are declining the number of the companies in head offices in Vancouver. A survey on 60 CEOs about what keeps you from expanding and building the business here, the number one thing is the price of property, which is related. Number two is the shortage of skilled labors, which is also because of the housing cost."

    Sep 24, 2013, Peter Ladner published article New business balks at Metro's affordable housing crisis:

    “Lower housing prices are a dream for most of Metro Vancouver's business community and a nightmare for the real-estate-construction-home-financing consortium.”

    The worse is that overheated real estate is not just limited in Vancouver, Canada.

    Jun 07, 2013, <Why are home prices so high and when will they fall?> reported with that:

    "A recent report from the Organization for Economic Co-operation and Development (OECD) that revealed Canada has the third most overvalued real estate in the developed world."

     Some economist says that the labor market is most important than that of any market in promoting economy.

     4.2. Keep and attract young talent is the key for long-term success

    The experience of Japan's Bubble Economy 1980s shows that overheated real estate is not only resulting in the destruction of the real economy, but also resulting in the destruction of the National's Quality - the foundation for the development of the real economy. Since that the greed of human inborn nature will drive some people as profit-chasing speculators in addicting for unearned opportunistic. And the unearned speculation can distort the life philosophy of people with addicting luxury life but despising for social wealth creation.

    Economic recession acts as curable flu, but, the loss of entrepreneurial spirit and social responsibility of the nationals acts as incurable cancer. The improper economic policies will provide a favorable environment for those speculators to damage nationals qualities and real economy.

    This is one of the main reasons that Japanese economy has been long-term downturn. And it is why that Japanese Prime Minister Shinzo Abe's the Three Magic Arrows to stimulate the economy does not achieve the desired results.

    The soaring rise in the cost of living pushed by speculators on real estate is damaging the real economy in Vancouver Canada. The economic plight in Vancouver shows that Canada is facing a vital historical moment for economic strategy adjusting.  

    ...................

    In writing...................