ARROGANCE OF MONEY
If you do not think you have to challenge conventional wisdom of economics, you cannot solve the matter.
Without being revolutionary enough, you cannot be a savior of economy.
An ordinary economist would say with contempt to others: "Take this measure, and then economy will be improved."
But, the fact or reality that the government, banks, and businesses cannot take the measure such an economist recommends is the core of the situation. By turning the blind eye to the fact or reality, such an economist thinks that his theory is complete and authentic.
But, such an economist must decide which is more foolish, himself or the government, banks, and businesses. He would surely think that the government and so on are fools because they do not follow his advice to make economy better.
This sort of attitudes seems to be only condoned in the economics sector, yet making economists more foolish and arrogant.
Rich men, very rich men, and super rich men do not mind improvement of economy. They want to continue to be rich themselves. They do not mind economy. They mind their money. They have no reason to cooperate with the government to improve economy. Yet, they have strong influences on many politicians, since they are rich, very rich, and super rich. Accordingly, key bureaucrats and high-ranking officials of the government serve them without putting the highest priority on improvement of general economy, expecting high returns from those rich men or wishing to members of those rich men's community.
What rich men, very rich men, or super rich men have ever fallen down to a state of poverty or day laborers due to an economic slump? So many cycles of the boom and recession have not made rich men, very rich men, or super rich men poor, since they have made every effort to continue to be rich by sacrificing the general economy of a nation and nations.
So, an economist who cannot face this fact and reality is useless. It is so, since economics is not aimed at making the rich poor and the poor rich, which is however is the only solution to realize a sate where the general economy is judged to be truly improved.
If 10% of the population who are quite rich would not like improvement of the national economy, the economy never gets improved. It is so, since this 10% of quite rich people can control 70% to 80% of the national economy.
Anyway, such an economist must try to study why people do not follow his theory and advice without ascribing it to foolishness of the people, since the one who looks foolish and arrogant is such an economist himself.
Finally, if, on average, every one has $133,000 in Japan (population: 120 million) and $146,000 in USA (population: 300 million), what economic theory is needed to achieve a goal of economics?
*** ***
The following are excerpts from "Flow of Funds (3rd Quarter of 2009) - Japan and US Overview -, Research and Statistics Department Bank of Japan, December 17, 2009"
(Click to enlarge.)http://www.boj.or.jp/en/type/stat/boj_stat/sj/sjhi093q.pdf
Japanese households have total $16 trillion assets, while U.S. households have total $44.4 trillion.
However, currency and deposits account for 54.9% of the assets held by total Japanese households.
In contrast, currency and deposits account for just 14.4% of the assets held by total American households.
Shares and equities account for 6.9% of the assets held by total Japanese households.
In contrast, shares and equities account for 31.3% of the assets held by total American households.
At least, one thing is clear according to sound commonsense: any same economics cannot simply apply to both Japan and the U.S., which economists cannot understand, since they think money and desire are universal.
*** ***
When Edwin Reischauer (1910-90) was American ambassador to Japan between 1961 and 1966, a minister from an African nation visited Japan to find that most of Japanese elites did not speak English. The African minister complained to Reischauer of his disappointment, saying, "Are there any educated persons in Japan?"
The U.S. Ambassador who spoke fluent Japanese said, "Higher education in Japan has been provided based on Japanese, since every text book used in universities is all written in Japanese. (They do not have to be good at spoken English.)"
The African minister was so surprised saying, "It is impossible!"
I think economists today look like this African ambassador who believed that European civilization had no counterpart in the world, so that translation of European cultural work into any local language was impossible. For him and other European-colonized Africans and Asians, to be educated means to go and study in Europe or America.
I really think that economists today look like this African minister who did not know the higher cultural level of Japan.
*** *** *** ***
It has been rainy today.
At night or a few hours ago, I went out to a drugstore nearby to buy some foods (discounted for the time zone), vitamin drinks, a tea bottle, etc.
A young pharmacist operated a cash register to sum them up. I watched the display for purchaser's confirmation to find it to be 1,000 yen.
I said to her, "It is just 1,000 yen." She said, "Yes, great! It has never happened. But, some are discounted..."
I received a bill of receipt, though she looked feeling like keeping it, and went out into the damp air on the street.
Yet, on the average base, she is assumed to have 12 million yen or $133,000, as you know.
Rev 3:3 Remember therefore how thou hast received and heard, and hold fast, and repent. If therefore thou shalt not watch, I will come on thee as a thief, and thou shalt not know what hour I will come upon thee.
Rev 3:4 Thou hast a few names even in Sardis which have not defiled their garments; and they shall walk with me in white: for they are worthy.
Rev 3:5 He that overcometh, the same shall be clothed in white raiment; and I will not blot out his name out of the book of life, but I will confess his name before my Father, and before his angels.
Rev 3:6 He that hath an ear, let him hear what the Spirit saith unto the churches.