Consumerism Greed and Market Crash

Decades ago the famous economist and Nobel Laureate Jan Tin Bergen observed:
"Generally the rich of the earth should prepare for themselves for a simpler life in the future. The leading philosophy of the present, which always asks for more material goods and does not attach many values at simplicity of life or modesty in claims, has to be replaced by alternative philosophies, and surely much could be learnt from Mahatma Gandhi's words and example. The real values of life do contain a sufficient quantity of food and shelter; but it is not necessary to have the luxuries now aimed at. Cultural values will have to be 'upgraded' again. The tremendous waste on armament and outer space research should be curtailed".

Let us see the relevance of these golden words of the great economist in the context of the global financial crisis we are witnessing. The world is shaken to the bones by the tidal wave of economic disaster starting with the collapse of the US stock market. Many large banking companies are forced into liquidation as if they were victims of an atomic blast. The resulting loss to institutions and individuals is colossal .Its tentacles of damage are spreading far and wide to other countries and economies. Share values have collapsed.

The losses are in billions of dollars. Some large financial companies wound up. Many others are in the path of closure taking their turn. A few shocked and frustrated individuals unable to bear the loss commit suicide. At least in one case one family was completely eliminated. The family a few seconds ago worth $50 million is worth nothing now.

Several countries find themselves in the hit list of the disaster wave. Many lose jobs for companies are forced to retrench and close down. There are no takers for the assets offered for sale. The liquidity crisis is severe. The US Government pumped in $700 billion to salvage the economy. The impact and the beneficial results are yet to emerge. We hope for the best.

Economists may break their heads to find the cause of this great economic malady... But common sense encased in wisdom tells us that the entire disease has originated from human greed. This is attested by the words of the Nobel Laurate. Jan Tin Bergen. Is it not greed fanned by consumerism which is worshipped, promoted and taken as an index of progress? More and more possessions and the quest for higher standards of living have taken us to this plight. Is it the hall mark of growth? Are we not in the trap of desires fanned by conspicuous consumption? Is it not the outcome of growing expectations which turn into cravings and greed?

Should we not salute our ancient wisdom in the matter of wealth acquisition and creation? If only we adhere to it we would have earned wealth subject to righteousness and eliminated greed substantially from the economic system. The economy would have been value driven and not greed driven. We would have respected the principle of sustainability in all areas of human activity and ensured life balance.

When we ignored these fundamentals our reins were broken and economic depression sets in with snowballing effect. Expectations are a function of the mind. They grow and transform into greed when intellect loses its power of discrimination. Risks go out of hand and calculations go astray. Can we not become bold without being rash? Can we not restrain ourselves from entering uncertain crocodile infested waters? When uncertainty and greed dominate market crash becomes inevitable. It is only a question of time.

The magnitude of loss is not yet determined and known. We keep our fingers crossed

Should we not save posterity from such economic disasters? If we want to make a beginning in this direction every one will do well to chain the demon of galloping greed from causing global havoc and misery.