ECONOMIC CONSTITUTION
National Economic
Constitution
Preamble
We, the
people, declare under the economic
system of Democrism “all the industries are owned by each worker, and each
worker will own all the industries”. To
administer the principle of the economic system the power of the economic
government is divided into three separate powers such as Legislative, Executive
and Judiciary. The Judiciary is the highest and its supreme court has the power
to pass ultimate order to rectify the mistakes committed by legislative and executives and interpret the
meaning of the laws framed by “Economic
Constitution”. Though the government
is created by the workers under presidential form of government or parliamentary form of government, the people
should not misconstrued that will lead them ultimately to “proletariat
dictatorship”. The tyrannical form of
government emerge only and if only if the three powers of government are
encroached by a single person or single group or single party. To illustrate
comprehensively it is necessary for us
to quote the words of James Madison, the American 4th US President
(1809-17) here under:
“The
accumulation of all powers, legislative,
executive, and Judiciary, in the same hands, whether of one, a few, or many,
and whether hereditary, or elective, may justly be pronounced the very
definition of tyranny”. On account of preserving the sanctity of democracy, we,
therefore, proclaim the separation of powers of democratic government.
The
capital has massive economic power that can effortlessly control the three powers of government. Since
more or less the whole national capital is directly owned by a few in
capitalism and by a single party or a group in Socialism, the global economy is
crushed under tyranny and the people have been squeezed by appalling poverty
for nearly two hundred years when two economic systems emerged in the world.
Considering the historical facts in whom the capital should be entrusted?
The
‘natural law and natural justice say that every creation is owned by the
creator and therefor the global capital should be owned by the people who are
the creators. Therefore we uphold the direct ownership of capital by the people.
“Because
it is man who is perfect and eternal by
evolution of mankind; because it is man who forms the societies to secure his
‘right to live’; because it is man who transforms the societies on denial of
his ‘right to live’; because it is man who creates all the things,
philosophies, and executions; because it is man who constitutes the laws of
society; because it is man who
transforms the laws of society; because it is who elects the
governments; because it is man who rejects the governments. Man is supreme ;
man is omnipotent; man is the greatest.
Man
is ‘social justice’; man is economic justice; man is political justice; man is
natural justice; man is above all controversies and man is peace loving
creature. Man is superior to Capitalism; man is superior to socialism; and man
is embodiment of Democrism. The capital,
therefore, should be entrusted to him. He knows how to create an ideal
society. Capitalism knows only how to create profit; Socialism knows only how
to impose dictatorship; but Democrism alone knows how to create ‘just society’.
All the philosophies lead to Democrism. It is the only just alternative for
mankind to live in the world peacefully.
Introduction
1. At the advent of the French Revolution ‘Democracy’ spread
all over the world with accelerated tempo toppling all the monarchical and
dictatorial governments in Europe. The principle of ‘Democracy’ proclaimed by Abraham Lincoln at his Guttenberg address was considered to be
the most energetic, virtual, universally acceptable and most quoted dictum by
the people.
The
principle was highly esteemed by the vested interests in political arena who wanted to demonstrate ‘Capitalistic Mode of Production’
because it paved the way for upholding ‘Property
Right’ to the rich capitalists. And the principle was deceitfully used,
against the honest expectations of Lincoln, as a powerful weapon to protect
‘capitalism’ and its aim of ‘maximization
of profit’. These rich capitalists exploited the poor people by influencing
the ‘democratic governments’ with
their money power by corrupting the politicians, bureaucrats and common people.
Since the very aim of ‘French
Revolution’ for upholding the three fundamental rights of Equality, Liberty
and Fraternity, it was the Karl Marx, who
strived to save the people from exploitation, advocated ‘proletariat Dictatorship’ on the basis of ‘Socialistic Mode of Production’. Instead of creating an Ideal
society the ‘government of proletariat dictatorship’ led by the ‘politbureau’
of communist party for the imposition
of a ‘Society of Slaves’ in their countries which was more horrible and
ruthless than the previous monarchical governments. So Harold J. Laski in his book ‘Liberty
in the Modern State’ rightly said as follows:
“Russian
working-men have probably often tempted to the view that their Bolshevik
masters mistakes communist dogma for the social truth”
2. The World governments shuttled between ‘non-equality democratic governments’
and non-liberty proletariat governments’.
Between the tussle of these governments ‘Fraternity’,
the third principle of Democracy was squashed and terminated in
the world and ‘terrorism’ occupied its place to command the world governments
to reign the people by dreadful of afrightment. A cold war emerged between
these governments and the mankind has been now threatened to live under the
shadow of third world war which may
annihilate the whole humanity within seconds by bombarding nuclear weapons like
‘Tzar’ and ‘Bravo’, on waging nuclear war intentionally or by triggering
accidently or by waving wrong combating signals from any one side.
3.
Third World War: In 1992
on the collapse of Soviet Union, the cold war vanished from the views and
visions of global politics.
.On
the contrary some Muslim scholars and elites have developed with utmost
sincerity a political concept on the platform of religion, a ‘Union of Islamic Countries’ comprising
Iran, Iraq, Egypt, Turkey, Saudi Arabia, Pakistan, Bangladesh, Indonesia, Libya,
Malaysia, Afghanistan, Kuwait, Qatar,
Oman, Yemen Sudan, Algeria, Morocco, Tunisia, Nigeria, Uzbekistan and other
Muslim nations in Asia to fight against US and Western Christian countries for
the cause of spreading religious dogma, protecting Islamic customs and
conventions and preserving Islamic
civilization. Some Muslim elites say that they first muster military
personnel for training their fundamentalists to spread terrorism for uprooting
the basic economic structure of their enemy countries and then to occupy
nuclear weapons to wage full pledged war on non believers of Islam. Perhaps it
may result in the burst out of ‘Third
World War’.
4.
All the politicians use the word ‘Democracy’ mainly it appears as a convenient
resort to intoxicate the minds of people to exploit the poor and innocent
people through their own political
parties, various forms of Medias and the government agencies. So a maxim was
brought into existence that ‘power tends
to corrupt and absolute power corrupts absolutely’ (Lord Acton).
5. On the backdrop of these detrimental scenarios what form
of government we, the people, at present want
immediately for the establishment of an ideal society.
6. The form of governments: Both Democratic
theory and democratic governments are the general terms in the pages of
political dictionary . More or less all the countries claim that they have
democratic governments because they are most fascinating doctrine to divert the
rational thought of common people to
escape from tight corners. We, the people, want an effective and energetic
government which has full potential power to establish an ideal society. The
governments existing at present on the basis of Capitalistic Mode of Production or Socialistic Mode of Production
have failed to satisfy the long pending aspirations of people. So we are ardently strive for
establishment of a government that is based on Democratic Mode of Production, the only alternative to lead the mankind
towards an ideal society.
7. Economic Government: For establishment of an ‘economic government’ we
have to ensure the following inalienable legislative
rights and powerful directions with strong approval of ‘General Will’ of the people for:
a). Identification of ‘Fundamental Rights’
b)
Identification of ‘Economic Constituencies’
c). Identification of ‘electorates’,
d). Identification of ‘legislators’,
e). Identification of ‘head of the
government’,
f). Identification of ‘Council of
ministers, and
g) Identification of the powers of Judiciary and Executive systems.
8. Definition of Fundaments
Rights: Fundamental rights mean
those legal entitlements without which man cannot live (right to live) with
Liberty, equality, fraternity, justice, Economic security, Economic power by
which one can able to expose one’s originality, creativeness and individuality
for the benefit of his own and his fellow members of society, and last but not
least, free from fear of future.
9. Virtue of Fundamental Rights: The fundamental rights have legal enforcements
enacted by the legislature. The fundamental rights are common to all citizens
irrespective of any social, political and economic status. It is, therefore,
proclaimed that all are equal before law. On analyzing fundamental
rights deeply we can classify hem
into a) active or economic fundamental
rights and b) passive or political and social fundamental rights. Between the
active and passive fundamental rights it is the passive fundamental rights that
have been effectuated by all
constitutions as the only source for the
creation of just society. This is because any fragile economic system can reign
the country without assuming any economic burden and any illiterate can become
head of the State.
10. Active or Economic Fundamental
rights:
a).From very birth of a child
these rights are universally
prevalent and inalienable and no one can
forfeit these rights from the people as
these rights are endowed by the law of nature.
b). These rights are ‘active or economically powerful’ because
the implementation of these rights costs the society monetarily forever and for
implementation of these rights the countries must bear economic burden for
which economic system must be basically very strong inherently.
c). The society assures that it will endure necessary monetary
cost perennially to uphold the inalienable ‘right to live’ of every citizen.
Among these rights the first and foremost is ‘right to work’.
10.1. Right to Work: The right to work means that a worker first seeks
an opportunity, according to his education and experience, to produce goods or
services which are socially needed and then he demands equivalent wage to
consume the goods or services to establish his ‘right to live’ because of the
fact the society in which he lives has
assured him ‘right to work’ according to
‘social contract’ created by the ‘general will’ of the people.
On
the other hand if the society fails to provide him his ‘due work’ or employment
it should assume ‘constitutional
responsibility’ to pay him adequate
monetary compensation to lead him a decent and economically secured life
without fear of future.
Technical
definition of ‘right to work’:
It is technical because it introduces some rules and regulations in the
definition of ‘right to work’. These rules and regulations may change from
society to society due to power of economic scenario of a country. For example
some countries may enact a law that if a worker has registered his name in
‘employment exchange’, the government is
obliged to offer him a job within six months in satisfaction of his education
and experience and moreover according to the need of ‘production necessities’
of a country. On the other hand if the government is inefficient to fulfill his
legal obligation, the affected worker may file a suit in the court of law
against the government as it fails to honor his ‘fundamental right to work’.
Under these circumstances the court may direct the government to pay the
‘affected worker’ a reasonable
compensation that will secure him
to lead him a life of decency
still he get his due or justifiable job
for the satisfaction of the judiciary . Among all fundamental rights the ‘right to work’ is indispensable because it only
ensures person to exercise his ‘right to live’ which is endowed by ‘Law of
Nature’. Otherwise the very basic
purpose of creating a civilized structure of human society as well as human
morality will also collapse together.
In conclusion I wish to say that the right to work is
the concept that people have a human right to work, or engage in
productive employment, and may not be prevented from doing so.
The right to work is enshrined in the Universal Declaration of Human Rights and recognized in international human rights law through its inclusion in the International Covenant on Economic,
Social and Cultural Rights,
where the right to work emphasizes economic, social and cultural development
10.2.
Right to Wage: Every citizen
has right to wage for his production of socially needed goods and services.
Every worker should be paid equal wage for equal work without any
discrimination on the basis of gender, race, religion, migration, physically
handicapped and so on. Child and bonded
labor should be abolished by exploiting their poverty and by inducing
for payment of wages.
No
Work, No Wage: Those who are
physically and mentally fit to produce socially needed goods and services and
those who want to be voluntarily unemployed for upholding for their family and
social prestige should not allowed to receive any income from any source like
rent from estate and ancestors property. They have to work or forgo the income.
10.3. Right to Production: Every worker
has right to produce socially needed goods and services engaging his capital
and his labor in the factories or cottage and village industries or
agricultural farms for the socio-economic needs of society. The workers get
wages according to their work to uphold their ‘right to live’. The workers only
duty is to produce socially needed goods for the consumers and it is the utmost
responsibility of the society as a whole to distribute the goods justifiably to
the consumers. In turn it is the economic duty of the consumers to buy the
goods at the rate at which the goods are produced for them.
On
the contrary, if the consumers due to their erratic psychological behavior fail
to create adequate demand and cause stagnation of goods in the market, it will
induce the producers to reduce the volume of production and create
‘unemployment’.
This
kind of unemployment due to ‘lack of effective demand’, in terms of John
Maynard Keynes, will forfeit the workers ‘right to live’. For the reckless
fault of consumers, the workers should not be punished as they have
accomplished their ‘economic duty’ Even though the ‘lack of effective demand’
prevails in the economy. the workers ‘right to production’ should be saved as
long as they wish to work. For the misconduct of consumers in the market it is
the consumers should be punished if there is over savings or hoarding. This
volume of over savings should be extracted in order to flow towards producers
for sustaining the volume of production to save the workers’ income and their
right to live. Then the dictum that ‘punish the consumers and save the workers’
will become the principle of production.
In
the Democratic Mode of Production the consumers, in the capacity of workers,
punish themselves and the workers, in the capacity of consumers, save their
‘right to work’. This is the entitlement
of ‘right to production’ Consumers as workers may suffer but not the workers as
consumers.
10.4. Right to Investment: Every worker has right
to create new investment out of his known legal source of income, especially S
of labor to stabilize his own employment
and also to provide opportunity for creation of new employment by equilibrating
his ‘savings’ into ‘investment’.
Workers’ investment is
a perennial flow towards accumulated stock of national capital by
increasing its marginality. When the
marginal income of present workers increases it results in increasing marginal
stock of capital which the
workers will utilize it primarily to enhance their standard of living and to
open the flood gate of employment
opportunities for their future generation.
On the other hand if
the private corporate sector creates ‘capital wealth’ by inducing the private
‘Capital-providers’ or ‘Stock-holders’ on the sale of ‘equities’, assuring a
huge volume of profit or ‘dividend’. These stock-holders ‘create’ wealth
without lifting a finger.
We call this dividend
as ‘return on equity’ (ROE). The ROE is deliberately devised to continue its value to infinity in the
‘stock market gambling’ to attract more and more people to play in the
financial sector and ultimately push them
to perish into the deep sea of debt.
In the capitalistic
mode of production (or in the democratic capitalist countries) it has been made
the law of the land as equivalent as the
divine right of kings, that was once the
law of land in ancient times. Indeed, “maximizing returns to shareholders” is
universally exalted as divine law or
mandate.
10.5. Right to justifiable dividend: The poor and
low-income workers for contributing investment by certain ratio, say 10%-20%,
for capital accumulation and development of economy, they
have to sacrifice some volume of consumption of bare necessities.
In this regard their “Investment Burden” is high.
In the case of
‘middle-income workers’ their contribution for ‘investment’, say 20%-30%, for
capital accumulation they need not sacrifice any necessities or comforts but
certain luxurious goods. Their “Investment
Burden” will be less than the investment burden of poor and low income
workers even though their contribution for national welfare is higher.
Similarly in regard to
‘rich and high- income workers’ their contribution for ‘investment’, say 30%
-40%, for capital accumulation for their
country’s development they need not sacrifice any of their consumption of necessities, comforts and luxurious goods,
except certain portion of their ‘savings’.
Economic Patriotism means carrying on certain burden for the
economic security of fellow citizen. For this noble cause in Democrism
“People’s National Profit” would be created in the “People’s business sector” by selling goods and services at ‘just price’
without any taxation.
Tap the Rich, Pat the Poor: Tap the rich
respectably and pat the poor acceptably to reduce the margin of income
between poor and rich, step by step, is vital factor of patriotism by
fraternity justice. The national dividend will be distributed according to
investment burden; since low income workers investment burden is high they will
be paid higher volume of dividend than other two income groups. This
distribution justifiable method will be followed to all income groups. This
distribution justice will narrow the ultimate income gap without interfering in
the ‘wage distribution’ in the work place that is established by ‘wage justice’
In this strategy of
income distribution every worker has the ‘right to wage’ justice (wage according
to work) and ‘right to justiciable dividend’ (dividend according to investment
burden).This ‘dual income’ – lower the wage and higher the dividend – will
eliminate income gap and lead the workers to establish ‘egalitarian society’
10.6. Right to Economic, Health and Mental Securities:
Senior
citizens, widows, orphans, and mentally retarded persons should be provided
with adequate economic security by money and kind and the State should offer
adequate and best medical care at first
priority by considering them as rare social property up to their death in full
satisfaction of judiciary. These persons
should not be wounded by others physically and mentally by using indecent words
and deeds publically or privately in their homes. All the persons should use
respectable words to call them considering their age, past social and job
position, and now their physical
inability.
11. Passive Fundamental Rights:
List of important Passive or Political
fundamental rights:
Right to direct a
child's upbringing
Right to marry
These passive
Fundamental rights are ensured to all the people in all the constitutions
because by exercising these fundament rights, people cannot control the
government to uphold their ‘right to live’ but the governments can easily keep
the people under their control.
Moreover the
governments will not carry any economic burden if the people exercise these
fundamental rights.
Right to vote: More or
less in all the democratic countries it not the the peole but the some vested
interests and corporate sectors by using the their money power and by buying
all kinds of media and propagating impossible advertisement to elect the
governments which they function for their benefits after the elections..
Billions and billions of dollars are spent to brain wash the people by vested
interests and the ‘fans of cine heroes’ who are considered to be demigods..
Even an illiterate charismatic leader by using his cine field, caste, race, religion
and so on are adoring the head of state by on the manipulation or big corporate
sectors. The people’s ‘right to vote in general elections can be made a ‘stock
of mockery’ and the people’s ‘ballet paper’, the only democratic power to elect their leader and ruling
themselves has now become ‘salable commodity’ in ‘election super market’. It has been actualized for many
decades even in USA and India, the
biggest democratic countries. Tis is one of the reasons for emergence of
‘terrorism’ even in democratic countries.
Since the most of the
fundamental rights are passive, fragile, and powerless the a large majority of electorates, including
elected representatives in the legislature want to be bargained themselves to get small or huge monetary and other kinds of benefits according to their capacity
even in the form of black money in the ‘election super markets’. In the ‘commodity super markets’
the buyers are paying money and in ‘election super markets’ the sellers are
paying money.
Since most of the fundamental rights are
passive , inactive and having limited operational usage by the people, we have
to empower them by transforming the passive fundamental rights(political) into
active fundamental rights(economic). Therefore we have to establish ‘Economic
Government’ (Industrial Democracy) in the place of ‘Political Government’
(Political Democracy). How to establish ‘Economic Government’ or ‘Industrial
Democracy”
I have already
mentioned in item No.10 the ‘Economic Fundamental Rights’ on which the ‘Economic
Government’ would be established. Now I have to specify the other elements of
economic government.
12. Identification of ‘Economic Constituencies’
We
know that in politics the country is divided into various kinds of
constituencies according to area wise. For instance in India the electorates
exercise their franchise into various kinds of constituencies. They are
‘National Parliament Constituencies, State Legislate Constituencies, City
Corporation Constituencies, Town Municipality Constituencies, and Village
Panchayat Constituencies and so on according the need of service of the people.
These constituencies have a head known as prime minister for the nation, Chief
Ministers for States, Mayors for Corporations, Chairmen for municipalities and
Panchayats. They serve for the people to uphold their passive fundamental
rights and to provide some welfare services, from village to national level
within the powers offered by constitution.
13. In the formation of ‘economic government’ the
constituencies are established by ‘industry wise’ and not area wise. The
industries are classified by heavy industries, medium scale industries, small
scale industries, village and cottage industries. In these industries the
working populations may be distributed into various magnitudes and proportions.
The
heavy industries constitute railways, air ways, surface or road transports, IT
industries – both hard ware and software industries, postal departments, petroleum
industries, nuclear power industries, thermo and hydraulic power industries,
fertilizer industries, textile industries, food industries, agro industries,
automobile industries and service industries like government workers, military
and police securities, college and university education, higher and primary
education, health care – hospitals,
legal services, places of worship and so
on.
Accordingly
the medium, small and cottage and village industries and self-employed
industries will be classified as per the existing procedures
14. Identification of electorates:
All
the working people are electorates irrespective of the size of the industries.
These electorates their representatives ‘national economic parliament, State
economic legislature, city economic corporation, small scale and village and
cottage industry councils. The number of ‘worker representatives’ will be
elected according the worker population, to each ‘economic ruling bodies’ from
economic parliament to village councils.
14.1. Formation of ‘National
Economic Parliament’:
For
instance let’s assume a country’s aggregate worker-population amounts to 200
million workers. They may be divided into 200 ‘national economic parliament
constituencies’ and each constituency contains I million workers. These workers
elect 200 representatives to national economic parliament according to prorata
of workers working in each industries i.e.
industrial constituencies.. For example if the national railways contains 5
million workers, the railway workers will elect 5 representatives and if iron
and steel industries conation 3 million workers, these workers will elect 3
representatives and this election procedure will be followed from national
heavy industries to national village and cottage industries.
14.2. Election of National
Economic Prime Minister: These
representatives will elect their nation’s Economic
Prime Minister who should belong to working class. Perhaps if a nation
wants a ‘presidential form of government’, the ‘Economic President’ may directly be elected by the workers of the
nation as a whole.
14.3. Council of ministers: The prime minister will send a list of ministers
whom he thinks efficient and cooperative with him to a specially appointed ‘economic and planning commission’ to
get its advice for the appointment of
his council of ministers. The prime minister take due consideration
whether his ministers belong to their respective ‘industrial constituencies’
and well versed about the problems of the workers who elected them. Moreover
the prime minister will have prerogative power to select or oust any minister
considering their ability of function.
15. Identification of powers of Judiciary and
Executive:
The Judiciary body of any
democratic country is an independent body and separate from the Executive and
Legislative bodies of both ‘economic and political governments’. The judiciary
will keenly watch through the Supreme court and all other courts up to district courts whether the
‘Economic Executive and Legislative bodies’ sincerely and honestly endorse the
‘economic fundamental rights’ of people. These courts as usual take care of
maintenance of law and order in the country along with solving problems related
to civil and criminal offences.
The ‘executive body’ is always under the direct control of
‘legislative body’ in the national economic government. The duty of executive
body, from chief secretary to municipality chairman’, is to accomplish the
orders, especially economic fundamental rights, passed by the ‘economic
legislative body.
16. Financial Administration by
budget:
In
Democrism the budget, an instrument of financial administration, will reflect
the values and priorities of a nation and its people. In Economic Government
the priories are framed as follows;
1.Stability of economy: The economic government will give first
priority for stabilization of economy by ‘equilibrating the expenditure and
income of producers’ at all levels of money supply, or all level of employment
and income. Once the stability is assured the economy will ‘take off into sustained growth’.
2. Creation of egalitarian
society: When the economy is stabilized it is easy for the government
to lead the people to achieve ‘egalitarian society’ by distributing a
considerable volume of ‘national profit’ according to the ‘investment burden of
the workers’ that will reduce the income gap between rich and poor.
3. Fulfillment of necessary basic
needs of people through central and local bodies: In the rural areas people need various basic necessities
like primary schools, proper roads, street lighting, drainage, clinics, brick
houses and so on.
17. Revenue and
Expenditure of Economic Government:
The budget primarily concentrates the
acceptable sources of revenue and justifiable streams of expenditure to provide
maximum welfare to the people in order of priority of income groups.
Revenue:
In respect of the fact that all
the industries are owned by all the people the
‘People’s National Profit’ (PNP) will directly flow in the income stream
of working people or ‘People’s Economic Government’. The national people’s
profit is dependent factor of ‘cost price’ (Cp) and ‘Just price’(Jp) of
aggregate goods and services produced in a given period of time, say one year.
It can be written as:
PNP = ƒ(Cp, Jp)
……..1
We can bifurcate the above
function as follows
PNP = Ø(Cp) ……….2 an
PNP = Ω(Jp) ……….. 3
a).
People’s National Profit and Cost of Production.
When PNP = Ø(Cp)
At a given volume of production people’s general national
profit will enhance by decreasing cost of production. The cost of
production will decrease when the productivity of labor increases due to
experience, education, proper training, working environment and by injecting
newly discovered technologies. On the increase of productivity the volume of
employment should not be reduced at any cost but volume of working hours should
be reduced and the workers should be allowed to gain more leisure.
The workers will
utilize the leisure hours to increase and expose their originality,
creativeness and individuality which are essential for enriching civilization.
More the leisure means more the productivity, more the national profit and more
the cultural activities..
b). People’s National Profit and Just Price:
When PNP = Ω(Jp)
Since all the
consumers are the producers the price of the commodities will be determined by
the consumers themselves. That is the ‘just price’. Consumers, on the principle
of transparency, will have the
commanding authority to know the ‘cost price’ of commodities in the capacity of
producers.
The consumers will
provide authority to ‘economic commission’ to fix just price for commodities to
adequate ‘NATIONAL PROFIT’ for
redistribution of income for their own benefit. Higher the Just price, higher
the national profit and higher the dividend. Higher the dividend means lower
the ‘income gap’ between poor and rich and it will not only increase the
‘purchasing power’ of people but also lead them as quickly as possible towards
an ‘egalitarian society’.
c). Gap between marginal cost price and marginal just
price:
When the economy
develops or takes off into sustained growth the marginal cost price of a
commodity will not increase in the short period because labor productivity and
introduction new production technology will not take place within short period
say 5 years. On the other hand the marginal just price can be increased by
consumers/producers on the advice of their ‘economic commission’. The marginal
gap between the two prices will be going on increasing and thereby ‘marginal
profit’ will also increase continuously.
The marginal
increase of national profit should not be construed as exploitation of
consumers or workers because within very short period say once in 6 months the consumers will paid as ‘dividend’
(higher refund) from the stock ‘national profit’ at a particular ratio. The
marginal dividend received by the consumers will always be higher than what
they paid for ‘marginal just price’ for any commodity.
Only at the very
first instance the consumers will suffer by paying higher ‘marginal just price’
than ‘marginal cost price’. On getting ‘dividend according to their investment
burden’ the bubbling market condition will vanish and the economy will grow
with a speed of accelerated temp.
It
is known fact that the ‘People’s National Profit’ is the dependent factor of
the combined variable factors of cost price and just price. The cost price may
be stable or decrease due to application of new technologies and production of
goods by large scale industries and this trend continue up to certain point and
it may be called it ‘decreasing marginal trend’ and it will not continue
towards as no one can produce any goods at ‘zero cost’. But in the case of
‘social services’ I may serve to the
societies at ‘zero cost’ and it is known fact that all mothers serve to their families at ‘zero cost’.
Some
times the cost price tend to increase due to scarcity natural resources. But
the ‘just price’ will always move on the path of ‘increasing marginal trend’
because it is determined by the consumers according to the need of the economy.
In the consequence of the decreasing/stable cost and the increasing price the national profit
will increase considerably and it ultimately benefit the people.
Since PNP = ƒ(Cp, Jp), when the factors
of ‘decreasing marginal cost and ‘increasing marginal just price’ operate
simultaneously the people’s National Profit will increase significantly and
considerable amount may be allocated for ‘people’s dividend’, contribution to
the government expenditure and to keep adequate reserve to stabilize the
economy.
18.
Expenditure:
The Economic Government fixes the just price
to all goods and services. The just price includes cost price and affordable
‘margin of profit’. The consumers will pay only the cost price for every
purchase of the goods and services and the ‘margin of profit’ will be returned
to the consumers in the form of ‘investment money’ which will be deposited in
their ‘investment bank’. The ‘consumption money’ equivalent to the ‘investment
money’ will be in the possession of economic government that will decide how to
spend the money with the approval of the people’s representatives in the
parliament. The government expenditure will chiefly include
‘contribution to new investment in goods and service sectors’,
contribution to the political government
by abolishing all taxes,
contribution to national dividend fund to distribute dividend to the
workers. contribution to “people’s business sectors” to stabilize their income
and employment and contribution to the precautionary reserve fund to meet unforeseen endogenous and exogenous calamities. And last
but not least a contribution to parliamentary fund to drive government
machinery to uphold democratic system of the country.
18.1. Contribution to new
investment:
In
its yearly budget the Economic Government will allocate a certain percentage of
People’s National Profit for creation of new investment. The volume of creation
of new investment depends on the volume of the national profit and the
structure wage between various income groups. [ I = ƒ(w,PNP)].If the government
strives to increase wage income of poor and middle income groups of workers who
occupy major portion of buyers in the market, the national profit will boost up
and it will help the government to expedite to create higher volume of new
investment.
On the absence of erratic
influence of ‘interest and taxation techniques’ the government can create
yearly investment with mathematical accuracy. For example Mrs. Joan Robinson in
her book ‘Accumulation of Capital’ illustrated that if the investment increases
at the rate of 1/multiplier x
acceleration i.e. (multiplier x acceleration)−1 every year, it will
lead the economy towards golden age. Since the national profit is directly
owned by the people the workers will accept to create investment with
mathematical accuracy.
18.2. Contribution to National
Dividend:
One
of the vital expenditures of Economic Government is to make adequate
contribution to national dividend. The government will distribute the national
dividend to the workers according to their investment burden. In coordination
with the wage income the dividend income strives to compress the income gap
between various income groups to create an egalitarian society. It is the
utmost duty of government to create an egalitarian society by using ‘dividend
technique’ without crushing the rich people by levying high income taxes. The
‘taxation technique’ has failed as it creates very huge volume of black and
induce the rich to run a parallel economy. Being rich is not a sin but it is
the sin to humiliate other fellow citizens.
18.3. Contribution to the
government:
Government’s Property is Nobody’s
Property:
At
the present economic scenario more or less all the political governments -
capitalistic and socialistic – are depending heavily on taxation to run their
economic machineries. Since the tax payers
are not directly involving in the construction government properties
they infer that the government’s property is nobody’s property. This kind of
unpatriotic inference induces the vulgar sentiments of people to destroy or
damage the government’s properties of billions and billions of dollar whenever
the people want to demonstrate their angry on the government’s policies.
Even
the newly installed ruling party construes that all the constructive projects,
completed or in progress, of previous
government are unproductive and anti-people and want to derail or destroy them,
though billions of dollars are invested in them. It is because of the fact that
the previous government’s property is nobody’s property. There is no
constitutional power to prevent these political governments to waste the huge volume
of tax money of the people, collected mostly from poor and middle classes.
People can witness such kind of ‘economic
crime’ in India both in Center and State governments. What is the
punishment for them or what is the remedy to stop such kind of horrifying
‘national economic crimes’?
Abolition of Taxation Technique
and Application of People’s National Profit Technique:
In
the political governments taxation is the main source of income. The government
invests the ‘tax-income’ in many profit yielding projects like railways. Though
the investment is made out of people’s taxation the profit earned is not
distributed to the taxpayers. Therefore the people infer that government’s
poverty is nobody’s property.
In
the Economic Government it’s required income is directly contributed from the
‘people’s national profit fund’. When
the economic government invests this people’s income in various ‘profit
yielding projects’ the tax payers will be entitled to receive ‘dividend’ from
the aggregate profit of these projects. Since some of the government
undertakings are ‘dividend yielding projects’ the people will certainly believe
that the government’s property is their own property. So that they will not
damage government’s properties when they are compelled to demonstrate
agitations against their government. Moreover the law of Democrism insists not
only the industries but also the governments should maintain accountability and
transparency to the people to all the industrial activities. Considering all
the facts of economic activities the ‘people’s Profit Technique’ is occupying
supreme position.
