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09-07-2010, 12:20 AM
I think you are confused. It's when those "stupid" school girls STOP buying expensive handbags that hurts the economy and causes a recession.
Japan already has high tariffs. People in Japan are impressed I drive a Volvo because it is considered an expensive luxury car in Japan. That isn't as true in the US.
Discouraging spending is not the way to solve a recession. When foreign goods are sold in Japan, it doesn't mean that 100% of the money is flushed out of Japan. The goods are tariffed, so the government gets money. Importers and retailers (combined) take 40% to 75% of the take, so a majority of the money from that Gucci bag probably stays in Japan. I think it's time to rethink that strategy.
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