Consumerism and cost of living

by Ven. Dr. P. Gnanarama
Principal Buddhist and Pali College, of Singapore.

Motivation for consumerism among the people of higher income segment in society is understandable, but the blind imitation of the higher income segment by the lower is really a deplorable situation. Systematically, consumers are persuaded to “buy now and pay later”; for which credit cards are given to make purchases on credit. Economists calculate economic boom in terms of consumer expenditure and it is taken as the benchmark of theorizing how well or badly the people are coping with economic pressures. Suddenly, there appeared an economic turmoil in the advanced financial markets. Spending on credit, weaknesses of regulations and supervision and lack of early warning systems and several other unforeseen events may have contributed to the present crisis.

Business entrepreneurs keep on bombarding us day and night to introduce as well as to promote new brands of goods through the systems of communications of our time: Newspapers, magazines, radio, Internet, e-mails, facsimiles and telephone calls. Marketing techniques are so endearing and pretty they convince consumers that those consumer goods are “just arrived” and are of “limited stock”. Alluring propaganda is not confined to items of personal consumption such as food, clothing, medicine and the like but it extends over a wide range of goods, gadgets and mechanical and electronic apparatus. By their persuasive propaganda, consumers are hooked and their mindset is attuned for competition and they are led to buy the “new arrivals” to keep up the social prestige. This is a pandemic, which has spread rapidly from affluent countries to the developing countries. This pattern of consumerism is seen for several decades and evidently, there is a gradual increase of the expenditure process practised regularly and habitually by consumers all over the world. Some may measure the living standard in terms of one’s expenditure. Yet others may encourage people to spend more and more elevating consumerism to the position of a religion contrary to Buddhist ideals of frugality, ‘contentment’ and ‘simple living’.

Worst scenario

Motivation for consumerism among the people of higher income segment in society is understandable, but the blind imitation of the higher income segment by the lower is really a deplorable situation. Systematically, consumers are persuaded to “buy now and pay later”; for which credit cards are given to make purchases on credit. Economists calculate economic boom in terms of consumer expenditure and it is taken as the benchmark of theorizing how well or badly the people are coping with economic pressures. Suddenly, there appeared an economic turmoil in the advanced financial markets. Spending on credit, weaknesses of regulations and supervision and lack of early warning systems and several other unforeseen events may have contributed to the present crisis. Worst scenario is the effects of the crisis has come to our doorstep due to economic interdependency on trade, sophisticated capital market and trade, which are relative to the process of globalization. Hence the present turmoil and recession are not confined to the post-industrial countries, the contagion of it spread as a virus and exhibited globally. Disturbance in commercial activities, collapse of banks, bursting of the housing bubble, crumbling of businesses, unemployment by minimizing the workforce, rising cost of living and food prices, falling share market and imbalances in every economic activity would be consequential.

According to a report from Singapore, Singaporeans also are not immune to the spending on credit. The following is an observation of Credit Counselling Singapore appeared in Today (24/10/2008) in an article entitled “Singaporeans are piling on the debt”.

“In particular, credit card rollover debt has ballooned to 3.3 billion, an increase of $296 million over the 12 months against a $94 million increase for the previous 12 months. Housing loans are also up $6.6 billion.

“Singaporeans have been piling on debt at fast rate’, said CCS president Kuo How Nam, who cited the statistics in a letter to the media.”

Buddhist approach

Let the World Bank and the IMF workout effective precautionary measures. We are no way in a position to remedy the irresistible economic forces, which are beyond the orbit of our influence. Buddhism has documented a clear-cut survival guide, where the pride of place has been given to earning, planning and budgeting.

According to the Buddha’s advice we can stay calm and cope with recession bravely by refraining from our extravagant lifestyle of living on credit and adhering to proper planning. The Buddha showed that happiness of economic stability (atthisukha) and happiness of debtlessness (ananasukha) are also necessary for laymen’s happiness. Saving for future (arakkhasampada) and Balancing the Budget (samajivikata) also have been mentioned as the factors contributory to happy life. Again by maintaining an easily sustainable life (subhara), satisfying only with the necessities (santussaka) involving in lesser commitments (appakicca) and resorting to plain living (sallahukavutti) one can keep the head above water. Maintaining equanimity in the face of consumerism and follow the advice of the Buddha: Being virtuous and intelligent one would gather wealth little by little without harming anybody as a bee that gathers honey without hurting the flower.

“When the good layman wealth has so amassed
Able is he to benefit his clan.
In portions four let him reserve and board;
So binds he to himself life’s friendly things.
One portion let him spend and taste the fruit
His business to conduct let him take two.
And portion four let him reserve and board,
So there’ll be wherewithal in times of need.”