Work and Temperance

The rate of inflation is going higher and higher. A couple of months ago the rate of inflation had just crossed 7 per cent, and that was the highest price rise witnessed in the previous 40 months.
There was an air of acute despair amongst top Congress leaders since no easy options seemed to be available to the government to control the surge in prices of a wide range of commodities, including most staple food items.
Today, the prime minister and his senior cabinet colleagues would probably be very happy to give up their salaries for a month or two if they could turn the clock back to April! The rate of inflation has now touched a mind-boggling 11 per cent. And what is worse is that the future looks just as bleak as it was in April. No one can predict when the process of spiralling prices will come to an end.
We know that the current inflationary process is a global phenomenon and practically every country is suffering. Nominal prices of oil have increased by 150 per cent. Food prices keep rising and pressure keeps mounting on families. In simple terms, the world economy is just not producing enough to satisfy rising world demands.
Emerging and developing countries have been growing significantly faster than the rest of the world, and there has been a steep surge in demand in these countries. This has been a major cause for the rise in world demand because the economies in most developed countries have been stagnating. Since there is no reason to believe that world production will rise miraculously at least in the immediate future, many people expect that prices will keep on rising.
These expectations in turn exacerbate the inflationary process. Households buy more of non-perishable goods than they need for their immediate consumption because they expect prices to go up even further.
What can the government do under these circumstances? In the short run, it is not easy to increase domestic supply. So, its policies must be aimed at reducing aggregate demand.
Of course, attempts to restrict demand will obviously have some adverse consequences for growth. People are not accustomed to give up their desire to hoard up. We got used to linking growth with more and more acquisition of wealth.
There is no magic cure-all solution for all times and all economies. But when inflation rages at close to double digit figures, clearly the only sensible solution is to lower the consumerism level and to produce more with our capacity to work all the harder.
While contractionary monetary policies will have some effect on the general level of prices, more needs to be done in order to reduce food prices. Unfortunately, there are no easy options, partly because of the past sins of the government. Krishna Iyer once said, “ In times of crisis, the democracy of India was safeguarded not by the educated rascals; but, by the ordinary simple people who toiled and sacrificed even their basic needs.”
Desperate times call for desperate measures. The government’s efforts to buy small quantities of food grain from world markets which will also signal to domestic traders that the government is determined to curb prices. This in turn may induce traders to release additional quantities because of fears that hoarding would no longer be profitable.
Apart from government machinary’s efforts, what is going to be the measures taken by individuals who are part of this government?
The salesian constitution Article 18 has something important not only for critical moments like current inflation, but. It gives a general norm for life. It speaks of work and temperance:
“Work and temperance will make the Congregation flourish”, whereas the seeking of an easy and comfortable life will instead bring about its death.
The Salesian gives himself to his mission with tireless energy, taking care to do everything with simplicity and moderation. He knows that by his work he is participating in the creative action of God and cooperating with Christ in building the Kingdom.
Temperance gives him the strength to control his heart, to himself and remain even-tempered.
He does not look for unusual penances but accepts the daily demands and renunciations of the apostolic life. He is ready to suffer cold and heat, hunger and thirst, weariness and disdain whenever God’s glory and the salvation of souls require it.”
Hard work is the hallmark of any development. Similarly is the curbing of desire to acquire. Giving into ease and comfort will make us die a slow death. We had learnt to grow fast; now is the time to device pace suitable for our growth. Temperance is the key to a stable growth.
These are difficult times particularly for the families. But, let us continue to work and follow temperance. That is all that we need to arrest any inflation.