Political and Economic Decentralization in an Independent Pampanga

Once Pampanga gains its liberty, management and administration replace the burden of liberation. Death and taxes always happen, no matter how woeful, so optimizing these two forces will shape Kapampangan administration.

Building Block of Society

We affirm that the family is the building block of society, and not the individual. As such, free markets and enterprise play to the family's benefit, and not necessarily for the individual's.

On Labor and Enterprise

The Kapampangan people are a historically entrepreneurial one, and Kapampangans lead the country in business creation and business management. Many companies like Converge ICT started in Pampanga, and have gone to become leaders in their fields.

As such, the Kapampangan administration will not interfere in the creation of new businesses and enterprises. However, we recognize that issues like wages have present contentions.

We first note this snippet from Quadragesimo Anno:

For they are greatly in error who do not hesitate to spread the principle that labor is worth and must be paid as much as its products are worth, and that consequently the one who hires out his labor has the right to demand all that is produced through his labor. How far this is from the truth is evident from that We have already explained in treating of property and labor.

As such, supply and demand are taken to be determinants of all prices, including wages. However, the encyclical adds nuance to this question:

We consider it more advisable, however, in the present condition of human society that, so far as is possible, the work-contract be somewhat modified by a partnership-contract, as is already being done in various ways and with no small advantage to workers and owners. Workers and other employees thus become sharers in ownership or management or participate in some fashion in the profits received.

While no harm exists in wage labor per se, present conditions place great strain on it. As such, Pius XI recommends this arrangement in the meantime. However, we note that the encyclical recognizes that certain conditions exist which incentivize not giving livable wages.

But if the business in question is not making enough money to pay the workers an equitable wage because it is being crushed by unjust burdens or forced to sell its product at less than a just price, those who are thus the cause of the injury are guilty of grave wrong, for they deprive workers of their just wage and force them under the pinch of necessity to accept a wage less than fair.

Taken in the context of late 19th century socioeconomic conditions, we note that government intervention is what prevents enterprises from raising their prices to equilibrium if needed - price ceilings and price freezes being typical examples in the Philippines.

One may contest our assertion with the Industrial Revolution being "Capitalism"'s peak moment. We note that the Industrial Revolution saw marked increases in government spending, government deficits, and laws preventing the rise of new businesses.

The state seems to have surfaced almost everywhere in the economy. It not only regulated markets but also created them. It not only protected property rights but also defined them. It did not either own enterprises or leave them to be owned by private individuals, but was also a partner in joint public–private undertakings, be they new modes of transportation or new imperial conquests. It seems more appropriate to speak now of the state within the economy rather than of the state and the economy. (Harris, R. (2004). Government and the Economy, 1688–1850. The Cambridge economic history of modern Britain, 1(8), 204-237.)

There is a comprehensive system of laws to protect them [capital owners], so those who lose their fortune is few, and there are not many who start up businesses all at once, or suddenly go bankrupt. (Iwakura Embassy Note on Great Britain)

As such, government intervention would stifle the creation of businesses and allow oligopolies to dominate Kapampangan markets. Corporations, which are practically command economies in miniature, are the greatest hindrance to efficient market activity, for their wages do not reflect market activity except in suit with other corporations. Free market determination of wages will give beneficial results when liability remains with business owners. As corporations exist only by government writ and sanction, an independent Pampanga will definitely refuse to recognize their existence. Wage labor and supply and demand will be respected Pampanga, subject to the official non-recognition of corporations and lack of official cooperation between public and private sectors. However, free Kapampangan citizens may still engage in limited liability transactions subject to both parties' consent.

We note that Kapampangan citizens may form whatever non-corporate enterprise they so please, whether cooperatives, proprietorships, partnerships, or free associations that regulate members.

On Banking and Fiat

As corporations will not exist in Pampanga, we encourage free citizens to start Credit Unions and Credit Cooperatives to take banks' places. These institutions allow more responsive behavior for consumer needs and actions. Additionally, these institutions will provide ample competition in the financial markets for anyone can start them without hindrance. Kapampangan consumers must note the principle of caveat emptor - these institutions can make or break themselves.

Fiat money will also not exist in Pampanga. To replace it, we encourage financial institutions to practice free banking - the spontaneous issuing of notes and other money by financial institutions backed by some resource, whether tangible or not. This backing resource may be abstract like an institutions' word/reputation, or concrete like gold or silver - the Republic will not care.

Education and Formation

We encourage that parents let their children self-study at home, and take programs like the GED or ALS that will allow early graduation from basic education. This style encourages independence and self-reliance, while also catering to each child's need. Universities and colleges may and should seek recognition by foreign accredittors for the time being. Native Kapampangan accreditation agencies will and must be started by those enterprising and skilled enough. These agencies may eventually accredit local basic education institutions. No government writ will recognize any, for we would like to encourage competition. Once again, we advise that consumers, educators, etc bear the risk and responsibility of action.

Security and Defense

While a standing army may remain early on, this army should be abolished eventually. To replace it, private security and defense firms should proliferate. By principle of MAD, this will prevent internal strife and conflict, and cooperation between firms through competition will prevail. Free citizens are also free to form their own militias, in the same spirit of self-organization as displayed in economic enterprises. The Republic reserves the right for a general call to arms by the mentioned parties when foreign invaders present a threat.

Homestead Principle

The Republic will recognize the homestead principle, as mentioned in Quadragesimo Anno:

That ownership is originally acquired both by occupancy of a thing not owned by any one and by labor, or, as is said, by specification, the tradition of all ages as well as the teaching of Our Predecessor Leo clearly testifies. For, whatever some idly say to the contrary, no injury is done to any person when a thing is occupied that is available to all but belongs to no one; however, only that labor which a man performs in his own name and by virtue of which a new form or increase has been given to a thing grants him title to these fruits.

That being said, we also recognize the traditional rights of the Aeta people to their lands, and the homestead principle will apply separately to them - non-Aeta can homestead non-Aeta lands, and Aeta can homestead Aeta lands. The Aeta groups may consent to complete integration into Kapampangan economic and legal structures whenever they may please, and through any method they choose to come to a consensus.