PROUTist Economics …as

if people matter

“Increase the purchasing capacity of the common people above all.”

Purpose of the Presentation

• To inform audience on the basic tenets of PROUT

• To orient audience on the concept of PROUT Economics
What is Economics?

• Economics definition—study of how society uses its limited resources

Mainstream Economic Systems
• 1. Market economy (US, Canada, UK, Germany)
• 2. Command economy (North Korea, Cuba)
• 3. Mixed economy (Iceland, Sweden, France)
Advantages

• 1. Market economy-competition, innovation, variety of goods and

services, economic activity, choice
• 2. Command economy-low levels of inequality (?) and
unemployment, common good as primary goal of production
• 3. Mixed economy-less income inequality
Disadvantages

• 1. Market economy-disparity, environmental

damage (tragedy of the commons), no/less safety
net, poor working conditions, questionable
production priorities
• 2. Command economy-lack of competition,
inefficient
• 3. Mixed economy-government control
PROUT Concept

• PROUT’s concept of economics-progressive utilization of resources

conducive to spirituality
Guaranteed Basic Needs

• Consistent with Maslow’s hierarchy of needs

Guaranteed Basic Needs

• Without satisfying lower needs, higher needs, including self-

actualization (self-realization, the goal of yoga), will be hard, if not
impossible
Guaranteed Basic Needs

• Does PROUT advocate a mendicant society?

Guaranteed Basic Needs

• Or a Dole-out society?—NO!
People’s Economy
• PROUT advocates guaranteed basic needs through gainful and
meaningful employment—not through charity
People’s Economy

• Basic PROUT concept— the whole economic unit is like one big family
• The unit looks after the welfare of all; no one is left behind
People’s Economy

• With limited resources—wealth accumulation should also be limited

• First fundamental principle of Prout:
• No individual should be allowed to accumulate any physical wealth without
the clear permission or approval of the collective body
People’s Economy

• Increasing share of income of bottom 20% of citizens by 1

percentage point (ppt) will increase GDP by 0.38 ppt in the next 5
years
People’s Economy

• In contrast, increasing the share of income of top 20% by 1 ppt will

decrease GDP by 0.08 ppt*
• *Causes and consequences of income inequality:a global perspective (IMF
staff discussion note, June 2015) by Dabla-Norris et al.
People’s Economy
• Consumption, not profit, must be the motivation
behind production
General Economy
• Cooperative-based economy—labor owns capital collectively.

• With technological advancement, labor will not be displaced by

machines/robots
• AI’s—working hours will be reduced; more time for leisure and
psychic and spiritual growth
General Economy
Key industries run by government on a no-profit, no-loss basis;
General Economy
Small businesses can be run by individuals/entrepreneurs
Psycho-economy
• Dealing with psychic impact of economic trends
• Guards against psycho-economic exploitation
• Economic developments should be used for elevation—more
efficiency leads to more time for higher pursuits
Commercial Economy

• Self-sufficient economic units—develop local resources into finished

goods, not sold as raw materials
• Not dependent on raw materials from outside
• Only surplus output should be traded
Commercial Economy

• PROUT does not promote equality—diversity is the law of nature,

equality can never be-8th principle of PROUT
Commercial Economy

• Meritorious people should receive incentive to be able to do more

service
Commercial Economy

• People with special needs should be provided for (as a typical family
does)
Standard of Living

• Increasing standard of living is the measure of the vitality of society-

not increasing GDP
Standard of Living

• Emerging alternatives:
• 1. Net Economic Welfare (NEW)
• 2. Gross National Happiness (GNH)
PROUT Trade and Commerce
-Consumer cooperatives for essentials
-Essentials tax free
-Barter across economic units preferred
-No income tax
-Production tax
-Free trade of finished goods among equals
END OF PRESENTATION