Inflation and the Cycle of Reproduction of Social Problem

Document Type : Research Article

Authors

1 Associated Professor. Department of social sciences, Faculty of Social sciences and Economics, Bu-Ali Sina University, Hamedan, Iran (Corresponding Author).

2 Assistant Professor, Department of social sciences, Faculty of Social sciences and Economics, Bu-Ali sina university, Hamedan, Iran.

3 Associated Professor, Department of social sciences, Faculty of Social sciences and Economics, Bu-Ali Sina University, Hamedan, Iran.

Abstract

Abstract
Inflation, in the common way, is considered an economic phenomenon. This position neglects the destabilizing role of inflation in other economic activities, in the ineffectiveness of political power under the continuous process of weakening society (spreading poverty and increasing inequality), creating destructive mentalities and morals. Social and finally the escalation of inflation are caused by non-monetary and non-economic phenomena. The mutual effects between different dimensions of the inflation phenomenon eventually lead to a cycle that we have called “social problem reproduction cycle” in this article. This cycle on the one hand the result of highlighting the complex and multi-layered effects arising from chronic inflation is in the framework of the triple relationship of government-society-market, and on the other hand, it is the result of the collapse of cognitive order and the creation of an unstable mentality among social activists. Finally, people caught in chronic inflation find themselves in they see confused and confused, conditions that are considered to strengthen the state-centered discourse environment. In this situation, the people of the society, first of all, start their daily life with a mentality based on scarcity, and they remain in the process of recreating the social order according to their own desires and interests. Cognitive poverty, therefore, is an inevitable consequence that ultimately leads to the weakening of the power of society along with the illusion of greater power of the state, because in the vacuum resulting from instability, the mind seeks to highlight the role of the actor who manifests the horizon of problem solving. However, what is ultimately achieved will be the duality of weak society and weak state.
Keywords: Social Problem, Reproduction, Inflation, Cognitive Order.
 
1. Introduction
Inflation is the increasing and irregular trend of price increases in the economy and means an indirect tax on the people in a way that the poorer section suffers more. Inflation refers to a situation in which the demand for money for a product grows relative to production, a situation that, in the absence of effective control, manifests itself as an increase in the price of a unit of a produced good. Inflation can occur in acute, hidden and overt forms, and hyperinflation. In the economic policy literature, price stability is considered the primary objective of monetary policy. In the past decade, central banks have pursued inflation control through monetary policy tools rather than focusing on economic growth and job creation, and the debate over inflation control strategies has expanded dramatically. Inflation can clearly be considered a social hazard, while its continuation leads to the increasing commodification of labor and its combination with problems such as high unemployment rates leads to damage to the self-esteem of young people and a decrease in the job security of the labor force. As the problems increase and the role of the government in providing for the basic needs of the people decreases, society suffers from some increasing social disorders and periodic chaos, which itself indicates the spread of economic problems to other areas of social life. Given that inflation is the opposite of economic stability, and that the Iranian economy has had a double-digit inflation rate of 10 to 30 percent for 50 years, addressing the consequences of inflation in the social dimension is important. Historically, a prominent economist and philosopher such as Adam Smith, in his book The Wealth of Nations, state that there are three sources of income: wages, profit, and rent, the first and second of which are the cause of inflation, and the third is its effect. Keynes also refers to the consequences of inflation in his famous book The Economic Consequences of Peace, and among other things, notes that all social contracts are destroyed in inflationary conditions, and inflationary policies cause productive sectors to be subjugated by non-productive sectors. Looking at the issue of inflation and the issues arising from it from a sociological perspective has a long history in the research tradition in Western research centers. On this basis, we can address the question of the nature of the consequences of inflation in society from a psychological, sociological, ethical, and political perspective.
 
2. Materials and Methods
To understand a human phenomenon, it should not be limited to the realm of study of a specific knowledge. The trend towards interdisciplinary studies, especially in the humanities and social sciences, confirms this approach. Numerous examples of social consequences resulting from economic policies can be mentioned in this regard. For example, we can point to the increase in social harms as a result of the implementation of structural adjustment programs in the country during the years of the construction government. By creating increasing inflation, these programs led to the spread and depth of poverty and therefore the spread of harms such as theft. Another aspect of the political consequences of these programs on a global scale was the creation of often corrupt governments in many developing countries.
 
3. Discussion
Inflation and continuous changes in the prices of goods and services provide a kind of wandering for the economically disadvantaged groups of society. In fact, the constant examination of prices that are constantly changing and “moving” gives a special appearance to the goods and creates a magical character around them. In this situation, the consumer redefines his relationship with goods and services and looks at them as a spectator and wanders in the fluctuating world of prices. This situation, especially with the expansion of Internet access, has also taken on a virtual form and leads curious visitors to constantly examine prices without the intention of buying or selling and simply as a recreational activity. Of course, the constant change in prices also has a worrying and anxiety-like nature, opening up a sense of fear and anxiety in front of the individual and driving or throwing him into a chaotic and disorderly world. Accordingly, a kind of collective spirit and morality based on instability prevails. In fact, social conditions and the conditions of the system The structures and institutional environment of a society affect the mentalities, attitudes, morals and personalities of individuals and, for example, make them risk-taking or risk-averse, pessimistic or positive, aggressive or tolerant, forward-looking or profit-seeking, and egoistic or collectivist. Whether a sense of self-efficacy and self-efficacy is prevalent in the social mentality of a people or whether the opposite is learned helplessness and social phobia are at the back of their minds, all have a social explanation. In such an order, individuals have the least reason and excuse to circumvent the law and rules. Sustainable benefit is achieved through social order.
The impact of inflation on society and social structure is evaluated, especially in relation to class changes. Some studies in this field have focused on the effects of inequality arising from inflation on social stratification and the social problems arising from it, or have also paid attention to the individual and psychological effects of inflation. In the field of behavioral economics, the dominance of market norms can be a consequence of the growth of inflation, which ultimately narrows the space for voluntary activities and expands the logic of the market to all areas. Ultimately, inflation leads to the dual weakening of the state and society, preventing both from being empowered, and replacing the desired situation of a weak state-weak society with a strong state-strong society, thus seriously hindering the path of development.
 
4. Conclusion
From the perspective of political economy, inflation leads to the weakening of society against the state and strengthens the illegitimate power of the state over collective life (weak society against the domineering state), which is itself anti-development, because it ultimately weakens the state and leads to the weak state-weak society duality. At the individual level, anxiety caused by economic instability affects everyone, both rich and poor. A sense of urgency, confusion, and constant flux replaces a sense of relative stability and predictability, and a tendency toward isolation and a sense of meaninglessness spreads. Thus, mental order is at risk of decline, and uncertainty replaces certainty. In such a context, a kind of desire for a centralized, strong, problem-solving state is strengthened and becomes the solution to the same problem. At the macro level, economic instability is part of the process of political instability and can cause rebellions, movements, and revolutions. The effects of inflation can be divided into classes and groups. Different social factors should be assessed and then their consequences for the entire social structure should be considered. A society caught in inflation inevitably falls short of its essential needs, towards meeting material necessities. It is clear that in these circumstances, the space necessary to respond to more transcendent needs such as self-esteem, individual independence, the development of talents, the pursuit of cultural desires and needs, and similar matters, is marginalized.

Keywords

Main Subjects


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