The Japanese Idea of "Freedom" and an American's Idea of "Freedom" is Different

The average Japanese doesn't know how good they've got it. In Japan, crime is virtually non-existent, the police don't hassle people (never hear of "police brutality") and one can feel safe in their own neighborhood at night. America is not a free country at all anymore. Nevertheless, I often meet Japanese people who have been to the United States and they tell me that they love the country because it is "freedom."

I've come to the conclusion that the idea of what "freedom" is to a Japanese person is different from what "freedom" is to an American.


The Japanese confuse "wide open spaces" with "freedom."


Watch the video below of the famous Japanese girl's group, "Puffy." This video was shot in the USA. This is pretty indicative of what Japanese people consider "freedom." Watch it for a minute.

You see? Wide roads, convertible cars the size of boats, wide open spaces, Statue of Liberty, California palm trees, having a big assed dog, sandy beaches, Los Angeles freeways, driving out in the middle of the desert... These are the things that represent "freedom" to a Japanese.


What represents "freedom" to an American? Well, of course I can't speak for all Americans, but huge cars, big dogs, sandy beaches and Los Angeles freeways (as well as concrete statues) do not represent freedom to me in the least.


Freedom is, to me, is the ability to walk down the street in a major city and smoke a cigarette (I don't smoke) or drink in public or to be able to walk out of my house any time at night or day without the oppression or fear that I am going to be attacked or robbed... And that means being attacked or robbed by criminals or the police, but I repeat myself. These are all things taken for granted in Japan. 


Freedom is, to me, to be able to do what I want as long as I don't interfere with other people or bother them. Or to not have other people or the police infringe upon me for no apparent reason.


Freedom is not the United States in 2012 that is for sure.


Sandy Beaches in California? Sure. Just make sure you don't barbecue or throw a Frisbee or a football or dig too deep a sand castle on an Los Angeles beach. It's now a $100 dollar fine if you do.


CBS reports in LA County Updates Ordinance on Ball, Frisbee Throwing at beaches:

According to Lucy Kim, from the LA County Department of Beaches and Harbors, a first-time offender will have to pay a $100 fine. For a second offense, beach-goers will face a $200 fine. Three or more infractions within one year will result in a $500 fine, Kim said.

The new ball and Frisbee tossing rules will be relaxed during the winter off-season.

The ordinance also prohibits digging any hole deeper than 18 inches into the sand, except where permission is granted for film and TV production services only.

♫ The home of the brave... 

and the land...of the... freeeeeeeeeeeee! ♫

Right! They are going to relax the rules in winter off-season... Great! Nobody goes to the beach in winter off-season!


Of course throwing a Frisbee or football at the beach isn't the complete or comprehensive definition of freedom. Nor is children being able to make sand castles as they wish; neither is the ability to drink or smoke at the beach (neither of which is legal on California State beaches). But I think these are pretty symptomatic of a very un-free country.


Freedom in Japan today blows away freedom in the USA today... Evidence? Here, here, here, here, here and here, just to point out a few.


We can drink and smoke in public, throw Frisbees and make sand castles as we please... Heck, we even have convertible cars too... Admittedly we're a tad bit short on the wide roads department but we have the best public transit and train and subway system in the entire world to make up for that.


Probably not the perfect definition of freedom, but a heck of a lot closer than today's USA is.

Will Amazon in USA Crash? How about Amazon in Japan?

UPDATE BELOW!

Recently I have been hearing lots of news from industry insiders that say that Amazon in Japan is on shaky ground and that their share prices in Japan are way over valued when compared to their profit / loss spreadsheet.

Well, I'm not exactly sure about that (not nearly as sure about Amazon as how sure I am that Yahoo Japan is royally messed up) but I do know that Amazon in the USA is not all smooth sailing. One big reason Amazon in the states is in bad shape is because they operate on such a very thin profit margin. This thin margin does not allow for too many mistakes. That's all well and good but there's another huge problem for them and that is sales tax.


In the United States, sales tax is decided by states. Until recently, Amazon has skated around the sales tax problem but, as government budgets get tighter and tighter many states are clamping down on Amazon.


Until recently, if hit with the threat of a tax bill, Amazon would just pull up its roots and close all the businesses operating from that particular state, but now, more and more states are putting the foot to the pedal and demanding payment. How much longer can Amazon keep running away?


Mish Shedlock recently ran a story about this very subject:

Amazon May Cut Ties to California Over Tax Issues; Texas Distribution Site Closed Over Similar Issues Last Month; Litigation Issues Move to Forefront

Cash strapped states are furious with Amazon.Com over sales tax collections. Several states passed laws or have sent Amazon bills. Amazon's response in every case so far is to leave the state.

Online retail giant Amazon.com will close its suburban Dallas distribution center amid a dispute with the state over millions in uncollected state sales taxes, The Associated Press reported Thursday.

The AP obtained an e-mail Thursday sent to Amazon employees by Dave Clark, the company's vice president of operations.

Clark wrote that the center in Irving will close April 12 because of the state's "unfavorable regulatory climate."

Last year the Texas comptroller's office sent Amazon a demand for $269 million in uncollected sales taxes, plus penalties and interest, from 2005 through 2009.

The problem with these Sales Taxes though, is not as simple as it seems on the surface. A lot of this problem is not because of locations of Amazon offices or distribution centers; a lot has to do with locations of Amazon affliliates.  For example, even if Amazon doesn't have a distribution center or offices in, say, California, if an affiliate recommends a book on a blog like this with an Amazon link to buy that book, and that affiliate is located in California, then you can see where the problem begins. The state of California considers that a sale transacted in California.

That's where the trouble starts.

Amazon has had the same problems with North Carolina, Hawaii and Rhode Island. With state governments finding it harder and harder to fill their coiffures and pay their bills, it's only a matter or time before more and more states demand that Amazon start paying the bills. 

Paying those bills will probably kill Amazon as many of them will be past due for delinquent sales tax revenues and the amounts are in the hundreds of millions of dollars. 

The Market Ticker reports in "The Upcoming Crash of Apple and Amazon":

Amazon will also blow up; it shares Netflix's former screwball P/E (currently 101.)

And when both go, and they will, the Nasdaq will collapse since these two stocks are an outrageously disproportionate piece of the index.

Why do I put this forward?

Let's deal with Amazon first, since it's the simpler case.  Amazon's primary "lever" is the ability to play around the edge of the sales tax system.  This gives it an instant 6% (on average) price advantage over everyone else, more than enough to offset the shipping costs (which you pay in any event; whether shipped directly to you or to a retail store, you still pay for it in the product price somehow.)

But that sales tax loophole is going to close.  Over the next few years states will find a way, as the revenue shaft is getting out of hand for them. 

Now here's the problem: Amazon has a 2.58% (ttm) profit margin and a 3.14% operating margin.  This is less than the benefit they get from evading the state sales tax system.

In short, this is a firm that only exists because of its ability to evade that tax structure.  When, not if, that ends the company is a literal zero.

That sounds really bad for Amazon in the USA. Now, the question for those of us in Japan who love Amazon.jp; will Amazon Japan survive? Well, Amazon Japan has a different set of problems than Amazon in the USA does. In the USA, sales tax is decided by different states. In Japan, sales tax is uniform nationwide and charged by the central government.

Amazon Japan has problems with the many competitors in Japan. At this time, some items on Amazon are cheaper than competitors and others are not. In my opinion, Amazon's best advantage is free shipping.

But with sales declining across the board and talk of a doubling in sales tax in Japan in the very near future, Amazon Japan's future looks to be an interesting ride.

UPDATE! A Japanese user sends in a very interesting piece on Amazon Japan avoiding paying sales tax:


「僕がAmazonを使わなくなった理由」"Why I just can't use Amazon anymore"　http://site-ichijo.net/blog/archives/date/2010/1011-231855.php


The article is in Japanese but you can get a simple Google translation here: http://translate.google.com/?hl=en&tab=mT