Last Friday I caperoned a senior economist from Japan and another Japanese guy from Tokyo. Was sitting next to Pak Arifin, an Indonesian driver, in one of the two mercedes tigers belonging to his office. We were on our way to the biggest noodle producer in Indonesia.
The four of us I'm sure disliked almost every minute of this travel, albeit maybe for different reasons. The two Japs looked horrified at the traffic jam, the typical variant we Jakartans have to put up with every day on the way to offices or homes. Pak Ali was perhaps too focused driving to notice this for fear of hitting or being hit by another vehicle. As for me, I perhaps belong to a group of few people who get disturbed by travelling in fancy cars in this seemingly rich metropolitan. It often gives a pang in the heart, contributing to the mockery against the poor evidently abundant in the metropolitan. True, the majority of us are poor; anyone can check the statistics. But oh yes, there are all kinds of fancy cars in Indonesia: Jaguar, Bentley, Rolls Royce, Porche, you just name it. The owners must belong to the filthy rich. I know not who they are, but every thinking layperson can come up with reasons how they got the money, which in short commands contempt, not respect, at least from me. (Duh; this is no jealosy for God's sake. Most of them are either crooked businesspersons, lawyers, or parliamentarians.)
The time was nearing half past 4 pm. This senior economist, whom I have known for some time, blurted:
"My country, Nad, is having a mind boggling growth problem. The last decades have seen Japan's economy in the down. Consumption has contributed some 60% of our economy. Thing is, the young generation in our country do not want to buy cars."
How so unlike Indonesians, I thought. He continued. "Car sales have been very low back at home. The young save money, unlike the older generation. We need consumption to invigorate the economy, you see. Once the older generation perishes, I don't know what's to become of Japan."
In the meantime, the jam was developing even more dreadfully. Our appointment was 16:30. I took a long breath to signify we just failed to be be punctual. From the darn car we couldn't help not smelling the occassional traffic carfumery usurping in, mostly from the Japanese cars that ambushed us from the four directions.
The other Jap spoke in agreement. Yes, it's true; very tough, ne.
But you can't mean that's the main cause, can you M---- san? Are you seriously meaning Japan's economic woe has been caused by plunging consumption? Come on. We are are talking about our consuming folly here; about the paradox of savings. The investment-saving curve may be true in mathematical equations, but economics is never mathematics as life is never an equation. Too many variables are ignored under the ceteris paribus. We know it but tend to forget it when we need it the most. Believe this: consumption will never cease, because there is no limit to human needs and wants. Economic growth is only a method we are capable to measure development successes or failure; we know from the start it is never accurate. Human logics has no way to know it. I think basing economic growth on consumption is one of the most damaging errors in contemporary economic theories. Think of yourself, or your own family. Can you face the future by consuming? It doesn't matter how much you make in a month, but how much you save! How can you blame the younger generation for saving their money? Any nation is essentially nothing but a bunch of its people. Like you and your families. The problem with most of the people out there is this, Mr. senior economist: they cannot save!
Well, that was about my self righteous thought. I kept the whole paragraph for myself. To the two nervous looking Japs I commented: "Well, that's an interesting phenomenon, M------ san."
When we got there, we were handsomely late for almost an hour.
