Somehow I think Britain forgot what capitalism means. Its could be free markets, but you can have a capitalist economy in regulated, restricted markets. And its not about city speculators gambling on the futures market. It is about the relentless buildup of industrial capital.
So I was reading in 1990 your average Japanese worker was working with 250,000$ of capital. And your average American worker was working with 250,000$ of capital. But by 2005 your average Japanese worker was working with 1,000,000$ in capital, while the American was still at 250,000$. We have some capital plant in Britain like that.. like a 3 billion dollar steel mill with 3,000 steel workers at the site. Its not a big deal to pay a worker 100,000$ a year if they are working with 1,000,000$ in capital.
I asked a question on another thread. Would you rather be born into a family of artists who owned successful design company. And one day you could become the chief designer. Or be born into a family that owned £300 million in transport ships, and one day you could own the ships.
You see when you become that chief designer there is intense competition and no barriers to entry(and you have to go into work everyday). The chances of you continuing your parents success are slim. Otoh when you own the ships even if you are a complete and utter moron, you simply simply hire a shipping management company to run your ships.
The East Asians are thinking the same way. They don't want the hip automobile design firm in Milan, Italy. They want to own like the steel mill which provides the steel for the car.
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