Bayanikasan Constitution of Dr. Salvador Araneta

K. PROVIDE a tax deduction for grants-in-aid extended by employers to promote savings among their personnel;

L. Provide the seed money for investment in enterprises promoted by the government with salary loans by government financial institutions at a subsidized rate of interest;

M. Institute a system of inheritance and donation taxes geared to the wealth of a recipient and not to the blood relationship between the giver and the receiver.

Article 63. The income-producing shares of stocks required by the new savings class under the special promotion of the State shall be held in escrow for 15 years to ensure that the new savings class will experience the benefits of the democratization of wealth.

EXPLANATORY NOTES

Article 61 enumerates the different Authorities which Parliament may create geared to promote economic development such as the National Economic Development Authority, the Public Service Authority in charge of developing the needed government public utilities and public transportation, and the Credit and Monetary Authority, the new name that is proposed for the Central Bank. While all the Authorities that Parliament could create should all be geared to promote democratization of wealth, two specific authorities, the People’s Housing Authority and the People’s Income-Producing Authority, are suggested, which would have more direct relevance to the establishment of capitalism for all or popular capitalism.

Article 62 enumerates 13 different tools which an Authority may adopt to promote capitalism for all. For more extended discussions and elaboration of those tools, the reader is referred to the following chapters of Bayanikasan-The Effective Democracy for All by Salvador Araneta:

Chapter 3 – “Effective Democracy for All Based On The Dialectics of the Triangle”

Chapter 9 – “Plans to Promote the Democratization of Wealth”

Chapter 10 – “Worker’s Ownership of the Enterprise and the Organic Democratization of Wealth”

Chapter 34 – “McNamara on Development in the Developing World”

Chapter 37 – “Can There Be an Effective Democracy For All – In a Democracy?”

Chapter 39 – “Christianity, Communism and Economic Democracy”

The most difficult thing for a person or a family that is not born with a silver spoon is to save the first two hundred thousand invested wisely in income-producing assets. Once such a saving is accomplished by a prudent person, they will be on the road to capitalism, for “money begets money,” and that person is no longer burdened by the other dictum: “misery begets misery.”

The reader is further referred to other chapters of the aforementioned book, which explain the relation of Capitalism for All in the context of Democracy.

Chapter 6 – “An Instrument of Economic Growth and Answer to Many Problems”

Chapter 7 – “The Defects, Not Merely the Effects, of Capitalism Have to be Attacked”

Chapter 8 – “The Democratization of Wealth, the Remedy of Stagflation”

Article 64. The guiding socio-economic-political principle is: from each according to his ability, to each according to his work, savings, and needs. The difference in salaries and fringe benefits in each level of government service, in each economic, educational, and civic organization, and in private enterprises between the lowest paid and the highest paid personnel shall not be more than 15 times.

During a transition period of six years, the State Assemblies, and in Metro Manila, the Troika leadership of the Federal Government may provide for a gradually diminishing differential not to exceed by 20 times.

EXPLANATORY NOTES

QUESTION: What is the rationale for the provision contained in the second sentence, paragraph 1 of Article 64 which provides that the difference in salary between the highest paid and the lowest paid personnel should not be more than 15 times?

ANSWER: The conservatives in America, specifically the leaders of the Republican Party, take the view that economic development by itself, benefits the people at large, with the increase of employment, and that the benefits of development filter down to all the people. Experience has shown that this is not the case. Economic development which is generally achieved with the use of more machines and automation, enriches the owners of the machines and of the automatic gadgets. (To be continued/PN)

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