== CAUSE OF ECONOMIC DEPRESSION & PROUTISTIC SOLUTION ==
~ Part 2 ~
(Note: This letter is in follow up to the earlier letter of Monday, 22 September.)
Namaskar,
As talks at the White House (USA) turn into a bi-partisan brawl, there
is no concrete action for how to resolve the current economic
depression. However, if and when they do come up with a plan-- whether
it be a $700 billion bailout or any other-- it will not be a proper
solution for the simple reason that they have misidentified the cause.
Note: If countries come forward to lend the US $700 billion dollars
then that will merely delay the downfall of the US economony. It
will not solve anything, because in 6 months again a crisis will come,
and then it will be even worse.
PREVAILING MYTH
Right now the prevailing myth among top captialists is that (1) a lack
of banking regulations along with (2) poor-loan candidates are the cause
of the current economic crisis.
They are claiming that the common people are the cause, as new
home-owners could not afford their house payments, i.e. mortgages, so
they forfeited on their loans, and in turn the banking industry collapsed.
More specifically, why did the banking industry collapse?
Because the common people were not making their house payments to the
bank, so the those investment banks had no cash, and when those banks
began struggling due to a lack of capital, then wealthy capitalists
stopped investing in the banks. Hence many banks went under.
And the primary cause is the common people, i.e. those poor loan
candidates.
This is the myth that is swirling round and round.
But that is not at all the main cause or the main problem of the the
current economic depression.
REAL CAUSE OF THE CRISIS
Baba has clearly identified two chief causes of economic depressions,
and it is these causes that are the operative factors with the present
day US economic downfall.
Baba says, "There are two main causes for economic depressions – first,
the concentration of wealth, and secondly, blockages in the rolling of
money." (AFPS-9)
So the first cause is the concentration of wealth of economic disparity,
which is an inherent characteristic of capitalism.
Due to extreme exploitation within the capitalist system, the rich get
richer and the poor get poorer. And it is this inherent defect that is
the main cause of the current economic depression.
The common people are losing their jobs, suffering from pay cuts, losing
their purchasing capacity, watching employment get outsourced overseas
etc. And for all these reasons common Americans are unable to purchase
the things they need. So they are totally overwhelmed by the current
situation.
They are becoming poorer everyday while the rich elite pile more wealth
into their own pockets.
Nobody in their right mind wants to forfeit the loans on their house;
everybody wants to be able to afford to go to the doctor; all want to
see their children go to university; everybody wants to be able to buy
the food and clothes and the things they need.
But due to years and years of corporate greed and capitalist
exploitation, all these problems are the living reality for 99% of the
population; and the common people are exploited to the bone.
Hence there is an extreme disparity of wealth: The very rich capitalist
elite versus everyone else who has no money, which is one of the reasons
behind an economic depression.
And that, in turn, leads to the second cause of an economic depression,
blockages in the rolling of money.
REAL CAUSE OF THE CRISIS (Cont)
In extreme capitalism, the rich accumulate mounds and mounds of money
that they can never ever use in their lifetime; the money just sits
there because already those wealthy people have everything they need or
desire. Now they only have the greedy desire to accumulate more wealth.
And on the other side of the spectrum, the common people have no money
to buy the things that they do need.
That causes the money to stop rolling, leading to a depression.
So these two reasons, economic disparity and the stagnation of money,
are the real underlying reasons behind the present depression which has
recently hit the US.
Baba has clearly marked these factors and that is what is happening. The
top 1/4% of the US population controls around 99% of the wealth. Hence
the common people have no money to spend. Such extreme exploitation leads to
huge economic disparities which perpetuates the stagnation of capital
such that money is unable to roll.
Wealthy CEO's have 600 million dollar bank accounts, or even billion
dollar bank accounts, and the common people cannot get clothers for their children
or even put bread on the table.
Even within the same company, there is huge disparities. General workers
might may $7 per hour while top executives earn $16,000 per hour. Yet
both are workers in the same company.
Such is the outrageous dichotomy which exists.
But those top politicians, elite capitalists, and economic advisors are
either blind or unwilling to openly admit the truth about these
fundamental pitfalls of capitalism, probably because they want to
salvage the capitalist system so they can continue in their greedy ways.
And without that, without tearing down capitalism's exploitative
methods, the US depression can never be solved.
But again, those greedy vaeshyas do not want to face the facts of the
situation.
That is why we hear them saying again and again, that the crisis is due
to the people being unable to afford their home mortgages. This is the
false myth they are propagating but it is not the root cause of today's
economic crisis.
PROUT IS THE ONLY SOLUTION
The only way out of the current economic depression is through a
Proutistic solution.
Baba says, "Depression is not a natural phenomenon. Pause is a natural
phenomenon. In a Proutistic structure pause may occur but depression
will not occur. To save society from depression, the approach of PROUT
is to increase purchasing power by increasing production, reduce
disparities in the value of wealth, and increase the circulation of
money; that is, by keeping money rolling. Empty slogans will not do."
('Economic Dynamics')
Only when the common people have their minimum requirements met-- when
all can afford to have a home etc-- then they will have money to spend
on other items. Then money will roll and producers will make products
and those items will be purchased by the people.
But capitalism does not honor this: Instead the wealthy try to squeeze
the life-force out of the common people until finally there is not even
one penny in anyone's pocket. And that leads to an economic meltdown or
depression.
Whereas Prout does not follow a policy of the hoarding of wealth, but
rather shares profits amongst all. In that way, never can 1% of the
population control all the wealth. And never will an economic depression
result.
Baba says, "In a Proutistic structure pause may occur but depression
will not occur." ('Economic Dynamics')
BABA'S BLESSING
In this time of crisis, it is our responsibility and duty to propagate
Prout and raise the consciousness of the people. Then we will get the solution.
No solution can be found within the capitalistic framework. All well-wishers
of humnaity must rally together and spread the ideals and word of Prout.
Then certainly, our human family will grow and prosper.
Baba says, "Only PROUT can save the world from depression." (PNS-13)
Namaskar,
Jiivan Mukta
Note 1: MORE HOW BABA HAS IDENTIFIED THE PROBLEM
Baba says, "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, most people will be exploited by a handful of exploiters. 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
of the value of wealth, is the fundamental cause of a depression." (AFPS-9)
Baba says, "Secondly, a depression may occur when money that is in the
possession of individual or state capitalists stops rolling. Money
remains inert or unutilized because those capitalists think that if the
money is allowed to roll freely then their profits will decrease, even
though it will bring relief to the common people. The very psychology of
capitalists is to make profit from the rolling of money. When they
discover that the investment of money does not bring profit up to their
expectations, then they stop rolling money. This keeps money immobile or
inert; consequently, there is no investment, no production, no income
and hence no purchasing power. The situation becomes so dangerous that
there are few buyers to buy commodities." (AFPS-9)
Baba says, "Economic depressions are actually the net result of
suppression, repression and oppression – that is, exploitation. When
exploitation reaches the culminating point, the mobility and the speed
of the society become virtually nil. In such a stage, that is, in this
culminating point, a natural explosion takes place." (PNS-13)
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Marry or Not Marry
Baba says, "In AM every individual has complete freedom in matters of
marriage... those who are engaged in the fulfillment of an ideal...or
those who have to spend the greater part of their day in some mental
occupation should not marry, because they will not find it possible to
fulfill their family commitments properly. The marriage of such people
is harmful to the society in many cases." (GHC, '91 Edn, p.19)
Note: In our Marga there is a dogma that either one should become a wt
or get married. Yet in the practical sense everyone knows that just
wearing the saffron dress does not mean dedication. There are many wts
who are exclusively "dedicated" only for their own stomach-- or for
power, post, and their groupist agenda. The number of wts who are really
dedicated to the ideology is quite low. But in true sense those few are
the proper wts. In contrast, on other side there are many margiis who
are completely focused on ideology and dedicated to our holy AM adarsha.
And in some of those cases, after getting married they are unable to
properly look after their personal family responsibilities. In result
their children end up not liking or even blaming Ananda Marga for their
family problems. About such cases, Baba has given the clear mandate that
it would have been best if such ideologically-minded margiis would have
remained single, and not married.
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