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11

ECONOMIC DYNAMICS

 P.R. Sarkar

Each and every movement in this universe is systalitic. Nothing ever moves in a straight line. Due to this systalitic motion, internal clash and cohesion take place. The ups and downs of socio-economic life in different phases of the social order are sure to take place due to this systalitic principle. When the pause period is long, the society goes through the phase of extended staticity, and the society may even cease to exist or lose all its dynamic movement. In the phase of pause, if there is lack of dynamic force, then the stage of dynamicity may not come in the subsequent phase. If the static phase is long and forceful, then the external expression of the dynamic phase is also likely to be long and forceful.

Due to their inherent staticity, the downfall of both capitalism and communism is inevitable. Both capitalism and communism are on the verge of extinction from this world. The external and internal spheres. The contradictions in capitalism are due to the self-centred profit motivated psychology and the accumulation of wealth for the benefit of a few rather than for the welfare of all. Hence capitalism is not congenial to the integrated growth of human progress. A day is therefore sure to come when capitalism will burst like a fire-cracker.

Marxism too, is a transitory phenomenon. In the external sphere of Marxism there is only ordinary acceleration and in the internal sphere there is only staticity. The result is negative dynamicity. That is why Marxism also will never be a success. Marxism is just like a comet on a parabolic path--it is not of a hyperbolic order. Marxism can only bring society to an omnistatic state, that is, the state of nihilism or cynicism--a sort of negation.

Economic Depressions--The Result of Staticity.

In the economic sphere, depressions are inevitable in both capitalist and communist countries due to this very inherent, intensive and innate staticity. Economic depressions are actually the net result of suppression, oppression and repression, that is, exploitation. When exploitation reaches the culminating point, the mobility and the speed of the society becomes virtually nil. In such a stage, that is, in this culminating point, a natural explosion takes place. In the case of the material world, the explosion is of a mental nature, and in the psychic sphere, the explosion is of psychic order and so on. Depressions may happen in any of the four ages--Shudra, Ksattriya, Vipra or Vaeshya ages.

Similar depressions may also take place in the cultural life of society due to suppression, oppression and repression. As a result, the cultural life becomes perverted. In fact, every aspect of cultural life becomes perverted. This is why we get perverted literature, music, dance, art, and architecture etc.

In both social and economic life, this depression becomes unbearable for one and all. Such a depression took place between 1929 and 1931. During this depression, in Bengal in Burdwan market, five seers or kilos of brinjal or eggplant were sold for 1 paisa, and 40 kilos or 1 mond were sold for 2 annas or 8 paisa. There was no one to purchase these items. There were also big curtailments in salaries. People had to accept salary cuts of 10% or more.

Today also, the stage has almost come for such a severe reaction. The explosion will come in 2, 3 or 5 years. It will surely come within ten years. The difference between the previous depression and the future depression will be that in the previous one there was little inflation of money, but the future depression will be associated with inflation. Hence it will be more detrimental to the integrated development of human life.

This depression will occur in the industrial subsection of the commercial economy and will have wide spread and devastating consequences for humanity. An endeavour should be made to shorten the span of this economic depression. Before the final culminating point comes, it is possible to avert the disaster and accelerate the speed of social movement. We can do so by creating a socio-economic and cultural impact on the entire social structure through PROUT. This impact should best be created just after the manifestative pause or the crest of the wave in the process of systalitic movement. As the world is passing through a most critical phase, we should be more active and create an impact. If the positive impact we create coincides with the explosion, the effect will be excellent.

It must be borne in mind that both inflation and depression result from the ailments of staticity. Suppose the production in a country is abundant and the gold bullion reserves are in proportion to the country's economic position, there is no possibility of inflation. However, if the circulation of the capital decreases as a result of staticity and the quantum of production also goes down, then inflation is bound to take place. If a country has a constant deficit in foreign trade, in that case also there is the possibility of inflation. In addition, if the foreign trade is not conducted on a barter basis and if the country has to import food stuffs and export raw materials, inflation will certainly occur. On the other hand, if there is sufficient production and adequate supply, but suddenly the quantum of demand falls, then the value of money suddenly increases for the buyer. This is called negative inflation or deflation.

The Root Causes of a Depression

There are two main causes for economic depressions. First, the concentration of wealth and secondly, blockages in the rolling of money. If capital is concentrated in the hands of a few individuals or the state, the majority of people are exploited by a handful of people. As a result of this process of severe exploitation, a serious explosion takes place. This explosion is known as a depression in the economic world. The concentration of wealth, and particularly the concentration in the value of wealth, is the fundamental cause of a depression.

The second cause occurs when money that is in the possession of individual or state capitalists stops rolling. Money remains inert or un-utilized because those capitalists think that if the money is allowed to roll freely than their profits will decrease, even though it will bring relief to the common masses. The very psychology of the capitalists is to make profit from the rolling of money. This keeps the money immobile or inert in various ways. As the money does not roll, there is no investment, no production, no income and hence no purchasing power, and the situation becomes so dangerous that there are few buyers to buy the commodities.

If there is surplus labor and deficit production, the effect of depression is more acute. In India, Bihar, Andra Pradesh, Telangana, and Orissa are surplus labor areas, and during a depression these areas could face indiscriminate closure of business houses, lay offs, etc. When wages fall, the people in the surplus labor areas who used to go to deficit labor areas for employment will be subjected to more hardships. This will aggravate the unemployment problem in surplus labor areas. In such situations, restricting the transfer of food amongst different socio-economic units could lead to an acute scarcity of food in the deficit production areas, and therefore, a cordon system should not be introduced. Countries with surplus production and deficit labor usually suffer fewer hardships during depression.

The Effect of Economic Depressions

An economic depression in capitalist countries will not spare communist or so-called socialist countries, India and the Middle East. India exports many raw materials to industrially developed countries and their satellites. India also purchases raw materials like raw cotton from other countries although it used to export such materials in the past. Therefore, to the extent to which India is dependent on other countries for its exports or imports, it will be affected. India also has immense loans and these loans will put a strain on the Indian economy during the depression. The fire sparks of depression will not spare India. If the financial or monetary trade or say the trade that affects bullion is lessened, and barter trade is increased, then the effect of a depression on India will not be much. Therefore, India should try to increase the range of its barter trade.

Bangladesh exports manufactured goods, raw jute and hide and imports foodstuffs and almost all other articles. If Bangladesh wants to keep itself away from a depression, it will have no alternative but to increase its barter trade.

In the course of time, the Arab countries--those selling oil--will be the most affected. Even the communist countries will not be spared from the onslaught of a depression. These countries could not solve their food problems. Although they have huge buffer stocks, they depend on Canada, the U.S.A. and Australia for wheat. If these dollar-based countries suffer from a depression, the communist countries will certainly be affected by a depression, although not much.

Depression is not a natural phenomenon. Pause is a natural phenomenon. In a Proutistic structure, pause may occur but depression will not occur. To relieve the society from depression the approach of PROUT is to give emphasis on increasing purchasing power by increasing production, reducing disparities in the value of wealth and increasing the circulation of money, that is, by keeping money rolling. Empty slogans will not do. Attention will have to be given to increasing the level of production.

In capitalist and communist countries the mode of production is defective. In capitalist countries, labor does not work in the interest of the management and management does not allow the rolling of money due to wealth concentration. In communist countries, labor does not feel one with the job and that is why there is sluggish production. The co-operative model of PROUT is free from both sets of defects. PROUT is well-adjusted with human ideals and sentiments while other socio-economic systems are ultravires to human existence and all-round elevation.

Bullion Inflation

In the capitalist order of economy, production is for the profit of the capitalist and the profit goes to individuals, groups and the state exchequer. In the socialist order of economy or so-called communism, the profit goes to the state exchequer and a microscopic fraction of the profit goes to the actual producers. In both cases capitalism exists, and whenever fresh financial investment is required, inflation takes place.

In the Proutistic order of economy, production should be solely for consumption. As there would not be any profit motive, there cannot be any fresh inflation, and the existing inflation will gradually die. In the Proutistic order of production or consumption, money value remains constant in the first phase and full-fledged purchasing power will be guaranteed to the people. In the second phase, when production increases in the revised economic order, money will get back its natural market value. Finally after consumption, money will get back its actual value. Inflation will be checked and the guarantee of purchasing power and the minimum essentials of life will be given to the people. The second phase will continue for ten to fifteen years. After the expiry of this period, that is, in the third phase, minimum essentials of life will increase and people will acquire more power to purchase. This power will increase at an accelerating rate.

The printing and issuing of monetary notes having no bullion value must stop immediately and new notes having bullion value should be issued in new colours and shapes. No monetary notes should be issued by the government henceforth without a clear assurance that it is prepared to pay the requisite amount of money in gold coins. This can only be implemented by a Proutistic government.

Production Inflation

The problem of production inflation also cannot be ignored. Production inflation may occur in two main circumstances. First, owing to the application of scientific methods, etc., the production of certain commodities may increase in excess of the demand or need in particular economic units. Then it becomes a problem how much such excess production or over production can be marketed or consumed. Secondly, it may also happen that all of a sudden under certain circumstances the production of commodities increases, then it becomes difficult to get a market for such production.

Now, a question arises whether or not such a production will increase the purchasing power as well as elevate the standard of it.

In general, circumstances such production is not a big problem, not a chronic problem, then it may take the form of an acute problem. This problem can be tackled by taking three measures. First, there should be a free trade system so that over production can be consumed by other countries or other economic units. In India, excepting the Punjab and Haryana, there is under production of milk. In other states, common people cannot get a sufficient amount of milk. But there are many countries, for example, certain European countries, where there is over production of milk. In England, Germany, Sweden, etc., even the authorities give orders or encourage the public to kill cows. If in these circumstances free trade is allowed amongst the different countries, the countries having over production or under production can make respective adjustments amongst themselves so that the over production of commodities may be consumed by under producing countries. In that case the concerning countries will be benefited. Here free trade means that there should not be any imposition of export or import duties and thus the prices of these commodities will benefit the consumers when they reach the market for actual consumption.

Secondly, there should be proper arrangements everywhere for the preservation of products which are excess in production. In Maldah in Bengal there may be over production of mangoes which are perishable commodities. As there is no preservation system the ordinary mango growers have to sell their mangoes at throw away prices. But if they could sell the same products after four months they would get remunerative prices. Moreover, if processing factories are established there then they can produce mango jelly, mango candy, mango juice, souce, jam, etc., and then they can preserve these for a longer time. There are many countries in Europe or other parts of the world where there is no production of mango. If a preservation system was available then mangoes can be easily sold in those European countries and the mango growers can earn a good amount of money.

In India in many places an abundance of vegetables are produced in the winter season, whereas in European countries at the same time there cannot be any vegetable production due tot he excessive cold. In Nadia district there is an abundant production of certain vegetables in the winter season at Rumghat, Nagi, Bago, etc. If vegetable processing factories could be installed in those places then perishable vegetable products could be easily preserved by tinning, etc. and they could be exported to other countries. From Calcutta, it takes a maximum 20 days for a ship to reach Europe. So preservation arrangements can be made for those days. Similar arrangements can be made for betel leaf. If this is done then the poor growers at Tomluk, Mecheda, Bagnan, etc., will be able to live a well-to-do life.

Thirdly, new, diversified styles of consumption should be invented. That is, consumption should be of a progressive nature and the style of consumption should be diversified. For example, there is only limited utilisation of linseed at the moment in India. But if the oil extracted from the linseed is deodorised then it can be widely used as an edible oil. Also, linen thread can be manufactured from linseed plants which are generally wasted. Ladies-fingers or okra are abundantly produced in India but only used as vegetables. But oil can be extracted from okra seeds which can be processed and marketed as edible oil. Also fine thread can be manufactured form the lady-finger plant and good quality clothes can be prepared form that thread.

In Bangladesh and West Bengal there is over production of jute which is an acute problem now. But this problem can be tackled easily by diversifying the consumption methods of jute. For example, we can get fine thread from the raw jute to produce good quality clothes.

In the existing world structure geo-sentiment is an obstacle for the implementation of the free trade system. Neither the capitalist countries nor the communist countries like the free trade system because it is detrimental to their respective self- motivated interests. But there are some free trade zones in the world which are very bright examples of the success of this sort of system. Singapore is one such example. there was a good proposal to declare Calcutta a free trade zone which was not implemented due to many reasons, including the failure of the concerning leaders. Bengal could have been greatly benefited by such a system. In a revised economic structure, that is, PROUT, there must not be any import or export duties on consumable commodities. If this is done then this earth will be converted into a golden earth.

The commune system suffers from the acute problem of chronic shortages of food products. So the communist countries always import food products from capitalist countries, inspite of all sorts of hue and cry raised by them regarding their "isms". They therefore oppose the free trade system.

In case there is over production of non-perishable goods or raw materials, these raw materials must not be allowed to be exported to other countries. Instead, raw materials must be immediately converted into manufactured goods at the place where these raw materials are available. For example, Orissa, the western portion of Rarh, certain portions of Madhya Pradesh, and certain portions of southern Bihar and Telegana are rich in different kinds of raw materials. These economically undeveloped places can easily be converted into advanced areas like the Rhine of Germany, and poverty stricken people will live an affluent life, if factories in these areas convert raw materials into manufactured goods. The export of raw materials is a sign of an unhealthy economic condition in the country. If over production is caused due to the scientific application of improved methods in industry and agriculture, like good manuring, etc., then consumption may be adjusted through different methods as suggested above. This will also increase the purchasing power of the people. In such a stage the bountifulness of nature will ultimately prove to be a good for the common people. Hence in a Proutistic structure production inflation would not be regarded as a problem.

PROUT--the Panacea

PROUT is the panacea for the integrated progress of the human society. It aims to bring about equilibrium and equipoise in all aspect of socio-economic life through the total restructuring of economics. Without PROUT socio-economic emancipation will remain a utopian dream. Only PROUT can save the world from depression.

Furthermore, PROUT is free form the inherent and exherent staticity. In capitalism, there is exherent and inherent staticity. People will suffer from ailments of staticity. These ailments will destroy all forms of "isms" in the very near future. Wise people should utilise this moment.

We are near the last stage of the Vaeshya age. If an impact is created, it will help the suffering humanity. It is the most opportune moment for creating an all-round revolution. This is a new sub-theory under Proutistic theory and may be called Gati- Vijinana--the Science of Dynamic in PROUT.

13 September 1987, Calcutta.

 

(c) 1995 Ananda Marga Publications, all rights reserved