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By Dharma Deva
It also, however, means the ordinary public will not and should not be
deprived of maximum amenities - efforts must be there to give them as
much of the maximum amenities as possible and available to society at
the time, but without destroying the incentive of the more meritorious
to produce better outputs and contributions for society in all spheres
of endeavour. A close analysis reveals that such a system of production
is based on consumption for the benefit of all members of society,
rather than profit being the underlying motive in the field of
production.
Instead the money found its way into USA stock markets for the
acquisition of corporate stocks, creating an unusual and unprecedented
demand for shares traded through US stock exchanges (the prices of
which are not truly reflective of the fundamental businesses or
investments of those corporations). This usage of money essentially
simply pushed up the value of stocks/shares, while remaining entirely
inert or unutilised for real productive purposes. It has now caused
inflation in the value of shares traded on US stock markets, while at
the same time the withdrawal of wealth from Asia has resulted, or
rather added to, the inability of those Asian economies to produce
their minimum necessities and to provide for any special or maximum
amenities, first to the more meritorious and secondly to the common
people. At no time has the people's economy been considered. For all
intents and purposes innovation in Asia has been stifled, the original
wealth that rolled in and was subsequently withdrawn was not used to
increase the real purchasing capacity of the people because it was not
first properly applied in building up the minimum necessities of all
people, but rather focused more on providing special amenities for a
limited segment of society or class of persons. In a nutshell, there
was no rational distribution. The capitalist reasoning in withdrawing
money from Asia was that they thought that if the money was allowed to
roll freely in Asia then their profits will decrease (even though it
would bring relief to the common masses). Consequently, they withdrew
their money without any control on them by the local economy and local
people.
Also, in PROUTist terms the value of money depends on the extent of its
circulation. The more frequently money changes hands, the greater its
economic value. The greater the value of money, the greater the
prosperity in individual and collective life, and the greater the
opportunities for all-round welfare. The people's economy then
flourishes. While money may well change hands through the US stock
markets, that does not amount to true circulation of money in the
productive parts of the economy which are concerned with the provision
of minimum necessities for all and special or maximum amenities to
first, the meritorious and secondly, to the common people. This
contradiction in capitalism and its false claim to being an efficient
allocator of wealth and distributor of resources arises due to the
self-centered profit motivated psychology and the control and
accumulation of wealth for the benefit of a few rather than for the
welfare of all.
However, had the consumption motive been the motivating force for
production there would have been a continual circulation of money
through the productive parts of the economy centered around the needs
of the people.
Citizen power
Nobel prize winner, Amartya Sen has emphasized that what creates
welfare is not goods as such, but the activity for which they are
acquired. Sarkar goes further and asserts that excess accumulation of
wealth reduces those activities and therefore the ability to enhance
purchasing capacity across the economy. According to Sen, income is
significant because of the opportunities it creates. But the actual
opportunities - or capabilities, as Sen calls them - also depend on a
number of other factors, such as health; these factors should also be
considered when measuring welfare. Again, Sarkar goes further and
provides a blueprint and economic model and intuitive principles that
directly tackle the issue - even defying conservative economic
thinking. In relation to health, Sarkar states that medical care and
therefore health is a minimum or basic necessity which must be
available to all people through adequate purchasing power. Without the
guarantee of minimum necessities the capability of income or rather the
value of wealth is not realised.
Sen has pointed out that all well-founded ethical principles presuppose
equality among individuals in some respect. Sarkar, in this regard has
formulated what in Neo-humanistic terms is called the Principle of
Social Equality and contrasts that to the Principle of Selfish
Pleasure. The former is beneficial individually and collectively, while
the latter is not of real benefit to the collective interest and indeed
leads to degradation of individual consciousness.