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"State vs. private"
  Neo-humanism

9th social and 2nd socio-economic principle
of Prout

The minimum necessities of all should be guaranteed in any particular age.

Purport: The Cosmic Entity is my father, the Cosmic Operative Principle is my mother and the three worlds are my homeland. So every thing or object of this universe is the common property of all humanity. Nothing in the universe is cent percent equal in both quality and quantity; therefore the minimum necessities of life should be made available to everybody. In other words, food, clothing, medical treatment, accommodation, education and so on must be provided to all. Humanity’s minimum necessities however, change with the change in eras or ages. For example for conveyance the minimum necessity may be a bicycle in one age and then an airplane in another age. The minimum necessities must be provided for all people according to the age in which they live.

Income or purchasing capacity?

Question: What do we want, increase in per capita income or increase in purchasing capacity?

Answer: Prout suggests that increases in per capita income are not a sufficiently reliable and scientific index to determine the standard and progress of a particular socio-economic unit. Rather, this approach is misleading and deceitful, because it refers to a simple mathematical calculation of total national income divided by total population. This does not give the correct picture of the standard of living of the people of a particular socio-economic unit, as the wealth disparity in society is concealed. Per capita income shows the mean and not the variation of income distribution. If inflation is also considered, the reliability of per capita income is further reduced. On the other hand, purchasing capacity is the real index of how a person's economic needs can be met by their income. All Prout’s plans and programs in the socio-economic sphere should be aimed at increasing the purchasing capacity of the people.

Note that Prout stresses increasing purchasing capacity and not per capita income. Per capita income is not a proper indication of the increase in the standard of living of the people because while people may have very high incomes they may not be able to purchase the necessities of life. On the other hand if the per capita income is low but people have great purchasing capacity they are much better off. So purchasing capacity and not per capita income is the true measure of economic prosperity. Everyone's requirements should be within their pecuniary periphery or purchasing capacity.

10 December 1987, Calcutta
From “Questions and answers”
Prout in a nutshell 12

Ananda Sutram 1962

Copyright Ananda Marga Publications 1999
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The provision of food, clothing, housing, education, medical care and other necessities to all, is a collective responsibility and must be the cornerstone of economic policy and social effort. While regional self-sufficiency is encouraged, a social guarantee must back such efforts. Surplus goods and services cannot be provided for anyone while people in general do not have their necessities. Of course, the definition of necessities will vary at different places. For instance, heavy clothing is needed in cold countries and transport requirements will vary from place to place. But a minimum level must be determined and guaranteed to all.

The prime mechanism for this policy in any modern economy is the provision of purchasing power through wages. To ensure that wages carry sufficient purchasing power for necessities, as well as to ensure that income differentials are contained, there must be collective prices and income control.

From New Aspects of Prout, by Jayanta Kumar
Proutist Universal Publications, Denmark 1987

Copyright The author 1999