Three Periods Of Japan
You can separate Japanese history into roughly three very broad categories. The period before the first military ruler took over all of Japan, the period during that time, and the period after that. The period before that is commonly referred to as the “warring states.”
If you’re a fan of samurai movies this is when most samurai movies take place, when there wasn’t a not clear leadership and all the different samurais and all the different warlords were always fighting for power and land.
If you look back there English history, ever since the first English king took over all of England, united all of England, you’ll find that the average number of people in any one house under one name is maybe four or five generations.
Exit Old Boss – Enter New Boss
What tends to happen is you have the first king that takes over a new house. A new name and then maybe three or four generations later someone else takes over it’s a very similar phenomenon in China.
If you look back through Chinese history, you’ll find all these different dynasties. Even in China they have a saying that every dynasty starts with a good Emperor and ends with a bad Emperor.
If you imagine a very young, very hungry entrepreneur, or a very young and very hungry company, they’ll be very eager to gain market share. They’ll be very eager to start to compete in any particular market. This means they’ll be very aggressive and innovative. They’ll be willing to take a lot of risks, mainly because if they copy what everyone else is doing they won’t really have a reason, they won’t give customers any reason to buy their product versus their competitor’s products.
Hungry And Innovative
The only way to gain market share is to come up with something different. Come up with something new. To come up with something innovated to come up with something that doesn’t exist yet. Only by being aggressive and taking risks to try to create this can they gain market share.
Every single company, even the huge companies that are around today, they all started out as very tiny companies that were desperate for market share. In a sense you can see this in all individuals.
If you remember the first couple of Star Wars movies, back when nobody knew who George Lucas was, back when nobody had heard of the names Luke Skywalker or Darth Vader, he was willing to take a lot of risks because he was desperate to gain market share.
Market Share Protection
Once companies get big enough, something strange kind of happens to them on a couple of levels. On one level, once they get market share, the next thing they shift into his figuring out how to protect market share.
In the United States at least, this is played out in a very interesting and a very corrupt way. If you imagine a small company that has sales or profits of $1 million per year and let’s say they decide to spend 10% of their profits to grow their business. 10% of $1 million is $100,000.
This company has decided they want to invest a hundred thousand dollars to grow their business. They could do this by creating some advertising campaigns. They could do this by spending money on research and development. They can do this by maybe building another factory or buying some more equipment to increase their productivity.
Con The Congress
Once a business gets large enough, that 10% becomes not 100,000 but 100 million. When you have that much money to spend, even though it still 10% of your sales, because it’s so much money, you have a lot more options on how to spend it. No longer are you restricted to investing it in advertising. No longer are you restricted to investing that in more factories or more research and development.
You will most likely do is spend that money on lobbyists because if you spend that money on lobbyists that will entice Congress to pass laws that will make it easier for you to make money. If you’re a company there’s two ways to sell products.
You can make a product that customers can choose to buy. If you make a product that customers can choose to buy, you have to always worry about all of their other options. If you’re making a product that customers can choose to buy you have to always be better than the competition.
No More Innovation
You have to always be worried about new developments in technology. Once you get big enough, and that 10% you want to invest every year is large enough, you can start to essentially change the laws to make it so people have to buy your products or you can change the laws to protect you against competition to make it illegal for anyone else to enter your market.
What happens to these large companies once they start to get very large and very powerful as they essentially own Congress. They essentially become the ones that create the laws that make us have to buy their products.
If you think about this for my political power standpoint, you can imagine a young wannabe politician that looks at the politicians that he sees how corrupt they are and just like a beginning entrepreneur who needs to get into the marketplace, this young and fresh politician has to come up with ideas that don’t exist right now. Because if he comes up with existing ideas they’re going to sound the same as everyone else’s ideas and no one will pay him or her any attention.
Young Hungry Politicians
This young politician wants to get power and he doesn’t have any power so he has to come up with some very innovative sounding ideas, very innovative sounding ideas that are different than the current ideas. But something happens once this politician gains power. He does the same thing that small companies do once you get power, the next step is to figure out how to protect your power.
Since politicians are inside the power structure, they can use their power to get more power. The more power they get the more power they can have to protect their power. This is essentially a perfect example of the old saying power corrupts and absolute power corrupts absolutely.
The larger a company becomes, the more corrupt they become, the less valuable the less innovative their products become. They become slow and lethargic. They spend all their money on sales and marketing at very little of it on innovating and making new products. The older the more powerful politician gets the more corrupt they get.
Good Emperor – Bad Emperor
This is exactly what you see in this in the succession of dynasties in China. You can imagine a young outsider who has new ideas for the country so they make him Emperor and he gains power. But then his children and his children’s children grow up within a family that is already politically powerful. Already wealthy. So those children and his children’s children much more likely to grow up absolutely corrupt and then the cycle continues.
Once the grand kids of the great grand kids become very corrupt then another Emperor will step in he’ll destroyer that dynasty and they’ll come up with another dynasty. This is where they get that saying every dynasty starts with a good Emperor and ends with a bad Emperor.
You can see the same thing happening in the cycle of families or monarchs in England. Each family lasts three or four generations and the same thing happens in China happens in England. The very first king of any dynasty will have fresh new and innovative ideas that are different than the current ruler which is probably corrupt. Then they have some type of revolution they get rid of the old ruler they install the new ruler.
Corrupted Grand Children
Within two or three generations later, the grand kids the great grand kids they grow up absolutely corrupt. They become the corrupt ruler that needs to be overthrown by the new fresh ruler with new fresh ideas. This is why both in China and England you see the same pattern of different families lasting three or four generations before they are thrown out of power.
Japan is kind of a unique case because when the first Shogun took over in about the late 1500s early 1600s. The Tokugawa Shogun. This was the same Shogun that was in power when the Western societies came and started to force Japan to open up.
If you’ve seen, if you read the book, “Shogun,” if you’ve seen the TV series “Shogun,” this was about the very first military ruler who essentially united all Japan.
The Last Shogun
Then if you seen the movie, “The Last Samurai,” this was a description of the events that happened at the end of that same family’s rule. When the grandson or great-grandson had become very weak and ineffective and corrupt and that let Japan be open to essentially invasion and takeover by Western powers. That’s the Japan that exists today.
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