The document outlines the principles of PROUT (Progressive Utilization Theory), an alternative economic model. It argues that today's economic system only benefits a few people and encourages excessive accumulation of wealth. PROUT proposes cooperative ownership of large enterprises, guaranteed minimum resources for all, and using taxes to fund welfare instead of income tax. It aims to ensure full employment, higher purchasing power, and the rational distribution and maximum utilization of resources for the benefit of all people.

1. PROUT
Economics that make sense

2. Today’s Economics

3. Today’s Economics

4. Today’s Economics

5. Today’s Economics
• Today’s Economy makes sense for a small percentage of
people
• The results are according to the system
• The present system does not work for all
• There is need of a change of system

6. Today’s Economics – Present system
• Encourages accumulation of resources
• Few people have accumulated a lot
• Profit motive
• Ownership by a few
• Centralized industrial system

7. PROUT
• PROgressive Utilization Theory
• Focus
• Utilization
• Distribution

8. First Fundamental Principle of PROUT
• No individual should be allowed to accumulate any
physical wealth without the clear permission and approval
of the collective body.

9. First Fundamental Principle of PROUT
• Accumulation
• Physical wealth
• Permission
• Collective body

10. First Fundamental Principle of PROUT
• Life in a family

11. Points of PROUT
• Motive
• Not profit
• But consumption
• Goods are produced to be consumed by the maximum
number of people

12. Employment
• If the motive is not profit
• There will be employment for all
• Reduce working hours – distribute the work
•

13. Ownership
• Very small enterprises – private
• Small – medium – large – cooperatives
• Large – key industries – immediate government
• Incentives + bonus
• Labor ownershipual should be allowed to accumulate any
physical wealth without the clear permission and approval
of the collective body.

14. Cooperatives
• Medium – Large enterprises
• Collective ownership
• Difficulties:
• Cooperatives cannot stand open competition
• Protective armor – exemption of taxes, etc.

15. Factors Needed for a Co-op’s Continuing
Success
1. Morality
2. Strong administration
3. The whole-hearted acceptance of the co-operative
system by the people. This requires:
1) Successful co-operative models
2) Education of the community about the benefits of the co-
operative system.
• Appropriate modernization with the latest
technology will increase production.

16. Agricultural
Development
• In rural villages and small towns a large
number of agro- and agrico-industries
should be established.
• Agrico-industries supply ―pre-harvest‖
inputs to farmers – seeds, fertilizers,
tractors, greenhouses, etc.
• Agro-industry is ―post-harvest,‖
processing raw agricultural products into
consumer goods – flour, oil, fruit and
vegetable processing, dairy plants,
medicinal herb laboratories, etc.
Consumer
cooperatives
Agricultural
cooperative
s
Agrico-
industrial
cooperatives
Agro-industrial
cooperatives

17. Purchasing power
• Minimum necessities guaranteed to all
• Ever increasing purchasing power
• Maximum amenities
• Special amenities to those with special role/capability

18. Income Tax
• ―Prout advocates the abolition of income tax.
• In India today if income tax is abolished and excise duty on
excisable commodities is increased by only ten percent, there
will be no loss of government revenue.
• When there is no income tax, nobody will try to accumulate
black money. All money will be white money.
• As a result there will be economic solidarity, an increase in
trade and commerce, more investment, more employment and
an improvement in the position of foreign exchange.
• Intellectuals should demand the abolition of income tax.‖ [P.R.
Sarkar, ―Developmental Planning‖]d be allowed to accumulate
any physical wealth without the clear permission and approval
of the collective body.

19. Tax
• Resource taxes, sales and excise taxes and land value
tax.
• Land tax would be collected by local and state
governments, sales tax by federal government.
• Resource and excise taxes could be levied by all three
levels of government.

20. Enough resources
• Rational distribution
• Maximum utilization
• VS.
• Growth – Austerity
• Accumulation

21. Socio-economic
units
• India has 44 socio-economic units.
• Each should make its own coordinated economic plan for
decentralized development through full employment.

22. Socio-economic
units
• This will start an all-round socio-cultural and economic
awakening in India.
• All people — regardless of whether they are rich or
poor, old or young, educated or illiterate — inspired by a
common anti-exploitation sentiment, will start a powerful
movement for socioeconomic liberation.

23. Economic Independence to women
• Without economic independence to women society will
always be carrying a burden

24. Morality
• Yama and Niyama
• Principles of morality

25. Political Education
• Politicians fool the people to grab power
• Politicians will not be able to fool the people

26. Universities &Educational Institutions
• Free from party politics
• They should not be an agent of the political system

27. Sadvipras – Moral Spiritual Leadership
• Selecto-electoral system
• Executive is selected
• Policy making is elected
• Lower house – by population
• Upper house – every minority represented

28. Raise Consciousness
• People conscious of their rights and demands
• For that:
1. Study Circles
2. Platform propaganda
3. Support Sadvipras in democratic fight

29. Sound Economic System
• 1. Minimum necessities guaranteed to all
• 2. Common philosophy of life
• 3. Universality in Constitutional Structure
• Cardinal law
• Moral law - There should be little difference
• Human law
• 4. Common Penal Code

30. Some extra points
• Special amenities for those with special duties/skills
• Ever growing purchasing power
• Liberty
• Physical sphere – limitations
• Psychic sphere
• Spiritual sphere
• Spiritual base

31. Rational Distribution – Max Utilization
• Resources are sufficient and more can be created
• Rational Distribution – all get benefit
• Maximum Utilization – nothing goes to waste

32. Economics that make sense
• When everyone is benefited by the economy
• It makes sense
• Studies show that greater the inequality, greater the social
problems
• Today’s economic system is designed to benefit a few
• Change has to be started