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Thursday, January 10, 2013

Overpopulation is Not the Cause of Poverty in the Philippines

The overpopulation issue is being brought up as the cause of the lack of jobs in the Philippines.The assertion is blatantly false and incorrect. Let me spell this out as concisely as I can.
Wealth is achieved via hard work, voluntary mutually beneficial economic exchanges - not doleouts or coerced economic choices
WEALTH IS ACHIEVED VIA HARD WORK, VOLUNTARY MUTUALLY BENEFICIAL ECONOMIC EXCHANGES – NOT DOLEOUTS OR COERCED ECONOMIC CHOICES
The lack of jobs in the Philippines is due to the constitutional economic restrictions that:
  1. Limit foreign investors to only 40% equity of companies registered in the Philippines
  2. Require foreign investors to have a Filipino partner
  3. Promote businesses that are wholly Filipino owned only
These policies neglect the fact that:
  1. Foreign investments provide jobs to Filipinos
  2. Foreign investments buy and avail of goods and services of Filipinos.
  3. Filipino consumers and Filipino jobseekers are being sacrificed in favor of Filipino businesses only
In restricting foreign investments, the Philippines has restricted the creation of jobs and has arrested the beneficial flow of trade and services in the domestic economy.
In restricting the creation of jobs and depressing domestic trade – Filipinos end up jobless and Filipino small and medium businesses have smaller revenues that can help cover the payroll and expand their activities.
The solution to widespread poverty therefore is not:
  1. A dimwitted and wasteful contraceptives doleout.
  2. A fraudulent and scam-laden CCT subsidy
  3. A “sin” tax that reduces the income of the poor.
  4. Protection and subsidies of inefficient domestic businesses – like rice, sugar, poultry, livestock.
  5. More taxes on online retailers
  6. Tax funding for activities of Philippine Political Parties
  7. Passage of a Freedom of Information bill.
The solution is to remove the restrictions which keep jobs out and perpetuate poverty.
Removing Sec 10 and 11 of Article 12 of the Philippine constitution and allowing free and open markets to generate investments and create jobs will reduce poverty for more Filipinos.

Why are most Filipinos easy to mislead?

It is really hilarious when the pro-RH law claim that the matter was an issue of the separation of the church and state. One even said that if the church will provide milk and diapers then they will vote against RH.  Whoa, step back for a moment. It’s not the job of the church – or the government for that matter to provide milk and diaper – that’s the job of individuals.
It’s beliefs of entitlement that make it easy for the pied pipers to ply their craft and we need to be vigilant about such pronouncements.  Having a lot of gullible and naive Filipinos makes the job easy.  The question, then is what makes Filipinos so gullible? Here are the top three reasons I can think of.
Most Filipinos are shallow and trivial. Filipinos have perfected the art of focusing on the trivial and the irrelevant because these are the easiest things to achieve aka “the path of least resistance”.
The things they focus on however, does not address the root causes of poverty. Thus, day in and day out, Filipinos bitch and whine about poverty ad nauseam.  Then the politicians come in selling their snake oil policies which do nothing about addressing the root causes.
Most Filipinos are ignorant of economics.  Filipinos are poor as a consequence of their flawed thinking and outrageously misguided choices – they are blatantly ignorant of economics. An economic problem needs an economic solution – not a political solution, not a welfare solution.
Ignorance of the law of supply and demand will not and does not exempt Filipinos from its outcomes. If there is a high demand for jobs, increase the supply of job creators – do not restrict it or reduce the demand for jobs by reducing the population size.
Worse instead of acquiring more knowledge to dispel ignorance – Filipinos choose to wallow in self-pity and the victim mentality. For instance, Bicol governor said that foreign countries should give more aid to the Philippines. Mister Joey Salceda – beggars cannot be choosers. Aim for more trade – not aid!
Most Filipinos don’t anticipate. Filipinos rely on their immediate emotions.  Show most Filipinos a tearjerker movie or soap opera and you can manipulate them to your ends. They will not question the circumstances surrounding the tear jerker.
The practice of not making decisions when emotions are at their height is not prevalent in the Philippines. Filipinos will make decisions at the height of their anger or sorrow or what not and regret their decisions in the end.
Filipinos consistently miss the fact that making a decision based on immediate emotions without the processing of the anticipative emotions have a huge impact on decision-making.  For instance, they see a poor person and feel piety. Then the politician comes in while the Filipino feels piety and suggests that the Filipino gives up his income to help the poor. At the height of piety, the Filipino says “yes” to the politician.
Had the Filipino deferred the decision making and thought things over – he would have also considered the anticipated emotion when his income is reduced, mendicancy is perpetuated, politician takes his money and disburses a portion while retaining the bigger part as salary.

Epilogue

In a nutshell:
- Filipinos are victims of their own ignorance.
- Filipinos are victims of their flawed decision making.
- Filipinos reap poverty as the consequence of supporting flawed economic policies – not overpopulation.

About the Author

BongV
 has written 478 stories on this site.


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