7.5% GDP growth? dream on!

[thadzonline]

---

well maybe we can look at the numbers and find out how many or what percentage are as lucky as you..you know these days, education even in the public or state schools is expensive

[baron]

the thing about our current system is that when somebody makes a better life, someone else is paying for it, maybe not directly...someone makes money, somebody else loses it..I know because I once work with the financial investments

There's no such thing as free lunch. Money is being earned and not given away. That's why those who know how to save will know their way in the future. They have a bright future ahead of them. On the other end, some are busy whining when they should be thinking of ways on how to get out of poverty, if ever they think they are poor, still.

GDP growth is up at 7.5% and the inflation rate continues to slow down, as per the news. These are just economic indication that we are on the right track.

[thadzonline]

of course, no free lunch..but there is such a thing as people earning at others expense..and that is sad..my point is, at least restructure the system so that it truly and genuinely rewards those who work hard regardless of social class..you go somewhere, you find people doing beautiful handicrafts, sells it at a good bargain, here comes somebody buys it and jacks up the price 10x more than when he bought it..Do you think that is fair enough?

[gareb]

baron:

it is real alright. nobody tries to deny that there indeed is a supposed growth in GDP for the past few quarters. the point of contention here is precisely "how much" and "who gets most out of it".

what we have to understand is that the major players of the economy are not necessarily the majority of the consumers of end goods. instead, the economy is controlled largely by multi-national companies, with the government instituting favorable atmospheres for business (tax moratorium, etc.) while asking more from the bulk of the population (E-VAT, etc.) this in itself is one of the many conditions that widen the gap between the rich and the poor.

prices of basic commodities, even with oil prices, currency strength and interest rates for our foreign debt held stable, will still rise, because with high growth rate comes high inflation. this is a basic macro-economic theoretical construct that has been proven to be true time and time again.

[gareb]

Neal Cruz of the PDI writes;

“What good is a 7.5-percent growth then, if it does not provide more jobs for us jobless? What good is a so-called robust economy if it does not put food on our table?�

“Well, it makes the factories and businesses earn more.�

“Businessmen earn more, yes, but aren’t they the rich ones already? So our economic growth only makes the rich richer and us poor poorer.�

“But can’t you see, when the businessmen earn more they can hire more people and therefore provide jobs.�

“Where are the jobs?� my neighbor asked plaintively. “I have been looking for a job, any job, for so long I must have worn out a dozen sandals.�

“Stop complaining and look some more,� I said, beginning to get irritated. “You won’t find a job by complaining.�

“I’m not the only one who can’t find a job. There are millions of others like me. They are all looking but can’t find any.�


Sen. Mar Roxas does his take;

“However, we also see that agriculture has slowed down to 3.9% compared to 6.7% in the same quarter last year. This is the sector where the country’s poor earn their living, and we should immediately focus on establishing sustainability of agriculture production.�

“As far as Juan dela Cruz is concerned, GDP growth means nothing, if it does not directly relate to his own wallet. The challenge the government faces is to turn the upbeat headlines in the newspaper to food on the table, to better jobs and income, and to more affordable goods and services.�


Manuel Quezon III on his second article about the issue;

"And something a reader from the business community pointed out in response to my last column: “The problem … is that the method of computing GDP was changed in 2004. The National Statistical Coordinating Board (NSCB, which presented the numbers) does not know if [the GDP] claim can be substantiated.�


IBON Foundation on its report;

"But the first semester up-tick in growth rates were most of all due to the appalling election-related spending by candidates and by the administration in support of its candidates. IBON estimates total campaign spending by candidates for all elected positions to be P30 billion to over P50 billion. But on top of this the government conspicuously increased its spending by P51.4 billion during the first semester 2007 election period compared to the first semester 2006 non-election period– bringing total election-related spending to a scandalous P101.4 billion."


Cielito Habito of PDI Business writes;

"Will government spending continue on a fast clip to provoke the same extraordinary production growth?

The election impetus for increased government spending is no longer there, so this now largely hinges on government finances--and recent revenue performance doesn't provide much basis for confidence here.

Will exports accelerate to provide the sustained push? The global slowdown being provoked by adverse market developments and US economic difficulties makes it unlikely.

Can private consumption further accelerate to the 7-8 percent range? Given our historical consumption growth experience, such growth rates are well beyond realistic bounds. Nor is it desirable for our growth to be even more dominated by private consumption than already is."


and finally, Fernando Fajardo of our very own CDN;

"In his turn to help explain the second quarter growth, Augusto Santos, acting NEDA director general and socioeconomic planning secretary, was reported to have stated that expenditures related to the May elections may have been a factor in the robust second quarter growth...

"All these mean that the current growth is not sustainable. This is especially true if we consider what is happening in the export sector, which declined in real terms in the 2nd quarter, due, I am sure, to the rise of the peso, which made our exports more expensive to foreign buyers. Something is still wrong also with our manufacturing sector, which grew only by 3.7 percent in the second quarter. Agriculture, fishery and forestry were reported to have grown by 5.5 percent as a whole, but crop production, livestock and poultry, and related activities, on which most of our people in the rural areas depend for their livelihood, grew only by 3.5 percent."

[baron]

baron:

it is real alright. nobody tries to deny that there indeed is a supposed growth in GDP for the past few quarters. the point of contention here is precisely "how much" and "who gets most out of it".

what we have to understand is that the major players of the economy are not necessarily the majority of the consumers of end goods. instead, the economy is controlled largely by multi-national companies, with the government instituting favorable atmospheres for business (tax moratorium, etc.) while asking more from the bulk of the population (E-VAT, etc.) this in itself is one of the many conditions that widen the gap between the rich and the poor.

prices of basic commodities, even with oil prices, currency strength and interest rates for our foreign debt held stable, will still rise, because with high growth rate comes high inflation. this is a basic macro-economic theoretical construct that has been proven to be true time and time again.

If high growth rate also involves high inflation, why is it that the inflation continues to slow down at 2.4% as per the news?

How much and who gets most out of growing economy, we must qualify. If we are investing more to help this economy, as big companies (MNCs and TNCs as you would like to put it) do when they do business, they will get what is equivalent to what they have invested.

We seemed to equate growth with better lifestyles in an instant which should not be the case.

[The_Gadore]

ok now let's go back to the topic which is "7.5 GDP growth"... the point of contention here is all about growth not wether who gets what and how much... is there really growth? and is it right to say "Dream on"?

[thadzonline]

@the_gadore and baron:

what good does statistics that show growth does if not in relevance to your people? speaking plainly statistics, yes, there is growth, but brings you to a question: what better things did it bring in? widen the gap some more between the rich and the poor..as you can see, the big companies get tax holidays for many years, the poor pay for additional taxes, VAT..education, even in state colleges are no longer easily accessible to the ordinary Juan, UP for example recently approved a 300% tuition fee increase putting their rates at par with private universities..and by the way, aren't you suspicious why statistics say one thing and on the streets you see otherwise? don't you think maybe they just reinvented the way they computed things to make it look favorable?

[baby_grace]

Foreign firms recognized the improvement in our economy. The government did not make up the figures just to get a good impression from the people. It's not actually true that what the stats show is far different from the actual situations in the streets and in the slums. It's just that those people have been in that situation for so long, even before the time of the incumbent leader. The thing is, these people are to blame, in part, because they failed to grab the opportunities to alleviate their condition. For example, the government (whoever was the President) has constantly addressed the perennial problem of lack of jobs. If Juan does not grab the opportunity to find a job, he will not feel the effects of the improving state of the economy.

[thadzonline]

maybe there are jobs, but if you look at it, naay shortage sa manpower, problema dili angkop sa labor force ang jobs available. Dili pod ka kablame sa atoang nurses kay they will seek greener pastures abroad sad, but look at what that does to our health services..what im saying is that, Government should do more to reach out to its people. If they want a more qualified labor force, then for what it's worth, make education accessible, let them not abandon state obligation to provide education to its citizenry. Dako kaayo ug military spending, but you go to Mindanao and see for yourself unsa ila dula didto, ginegosyo ra man gani na sa mga heneral ilang mga supplies at the expense of their pawns(mga gagmay ranggo naa sa field)..Do you know how much we are losing to corruption ug unsay mabuhat ana nga amount?

Look at those senators ug ngano manghilabot pa na sila sa wowowee issue..in aid of legislation? or pogi points? that despite daghan unta bills pending nga pwede nila dalion.