How to stop or solve the poverty in the Philippines?

[al1974]

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the hyperwage theory can be done on at least 20% increase per year on the next five years. there has been discussions already in some venues in our govt and private sectors, which I will share later. my advocacy on this will soon reap its fruits. like most of you here who replied to the posts, i dream of a better philippines and I believe that hyperwage is the FASTEST way to fast track our third world country to the first world.

and oh, by the way- rich countries do have small scale business despite their higher wages- some of them employ less or no people at all and they did survive. In any economic decision, there are trade-offs and one trade off for hyperwage theory is for small business to close. but then again, if you have high wages, being employed would now be better- better salaries, better benefits, better quality of products because you are now paying higher wages.

[al1974]

and small scale industries will also benefit for higher purchasing power- with more money for the masses to spend, they will benefit from it. those who purchase local stuff will now purchase more. example- those who buy 1 shoes per year will now buy more than one, those who don't have houses will start to try to get one, and so on so fort.

there is also a Keynesian economic theory that says for every peso spent by a consumer, it multiplies to 5 peso to the economy. by this, there will be a stir or purchases and economic activity if people have the money to spend. and capitalist will now spend more for their employees- which is also a way of wealth distribution. by the way- 90% of our country's wealth are owned by 5% of the population.

[brownprose]

the hyperwage theory can be done on at least 20% increase per year on the next five years. there has been discussions already in some venues in our govt and private sectors, which I will share later. my advocacy on this will soon reap its fruits. like most of you here who replied to the posts, i dream of a better philippines and I believe that hyperwage is the FASTEST way to fast track our third world country to the first world..

I read that 20% yearly increment proposed by Bentulan. Effectively, five years hence, the minimum wage would be like 3.5 times already. And the same increment would consequently follow on goods and services. In effect, it doesn't offer any change in the purchasing power.

and oh, by the way- rich countries do have small scale business despite their higher wages- some of them employ less or no people at all and they did survive.

Yes BUT on a case by case or industry by industry basis. There are prosperous industries like IT. In Silicon Valley for example, even small companies can afford to really pay high as much as they can afford to hire just one or two people to do programming (I know this because I am also currently connected with a Silicon Valley firm now). But it's hard to ignore the fact that there are industries that require physical labor that a company dies without such kind of human resource -- small scale mining, low-rise construction, system integration/installation and etc.

In any economic decision, there are trade-offs and one trade off for hyperwage theory is for small business to close. but then again, if you have high wages, being employed would now be better- better salaries, better benefits, better quality of products because you are now paying higher wages.

Do you know how many small businesses this country has? According to the DTI, more than 98% of the country's businesses are categorized as SMEs (Small-Medium Enterprises). Would you or can you afford to make such big trade-offs? I don't think so.

[brownprose]

and small scale industries will also benefit for higher purchasing power- with more money for the masses to spend, they will benefit from it. those who purchase local stuff will now purchase more. example- those who buy 1 shoes per year will now buy more than one, those who don't have houses will start to try to get one, and so on so fort.

I beg to disagree. The Uganda example in 1971 had made people richer BUT prices were so high that they had to make more money to afford them. Arbitrary increase in wages doesn't always translate to better purchasing power. Denmark tried, like in 1988, to experiment on adjusting wages arbitrarily - what ensued was inflation.

there is also a Keynesian economic theory that says for every peso spent by a consumer, it multiplies to 5 peso to the economy. by this, there will be a stir or purchases and economic activity if people have the money to spend.

It's good you brought this up. I think the author of Hyperwage has made a skewed reference of Keynsesian Thought to support his theory. The Keynesian "multiplier effect" can be achieved by "pump priming" the economy thru a government-led infrastructure activities and interest rates reduction. In so doing, " the injection of income results in more spending in the general economy, which in turn stimulates more production and investment involving still more income and spending and so forth. The initial stimulation starts a cascade of events, whose total increase in economic activity is a multiple of the original investment." (Source: The Economic Consequences of the Peace by Keynes, John Maynard [1919] [2004]).

Further, it (the Keynesian Economics) does not mention the multiplier effect of arbitrary wage adjustments. It also never crossed John Maynard Keynes' mind to be used as a formula for the low wage problem but rather for "unemployment." Never did he propose it to be the basis of hyperwage nor his General Theory of Employment, Interest and Money wanted to hyperwage a depress economy to solve the problem.

But for the sake of discussion, the 1:5 payback/return ratio you mentioned does not take into account real or actual purchasing strength after every hyperwage. It is basic Economics that arbitrary increases in prices, wages always return an arbitrary increase of the same.

and capitalist will now spend more for their employees- which is also a way of wealth distribution. by the way- 90% of our country's wealth are owned by 5% of the population.

While I agree that only a handful owns the country's wealth, hyperwage cannot contain the debilitating impact on or to those (like you and me) who do not belong to the 5% you mentioned. I would rather propose co-ownership (e.g. say Stock Options) of profitable corporations than hyperwage.

The Stock Option model has worked flawlessly in many countries and corporations like Google, Yahoo, Microsoft and other publicly-listed companies, small or large alike.

[LytSlpr]

one word, FEDERALIZE.

for the following reasons:

-people will have more control and involvement with their own state.
-majority of the state's income will go back to the state and not "remitted" to the national government therefore providing better services to the people and thereby alleviating poverty.
-the state will have autonomy over constant national political bickerings which stuns growth.

with this being said, cebu is the MOST promising and will benefit the most in a federalized government.

[wakkanakka]

I think the government is so corrupt that it ruins other imnprovements. Whatever we do, our money gets stolen and the poor people suffer because the education budget is so low. And the government services they also don't get because there's always no budget. It is in someone's pocket al;ready!

[ian_1983]

Martial Law......kay daghan kaayo abosado mga Pinoy.

[zurita10]

Its inevitable, it can't be stop. NOT

Pray hard - Work harder
or you can always
Never try - never fail <--- if your from losersville

[melvenb]

1. Kill all corrupt people in the government, from Top to Bottom.. Convicting them is not enough coz they can be paroled and go back to their service again. Corruption can lead to a lot of negative things to a country, directly and indirectly.

2. Utilize and invest on developing all our natural resources especially our geothermal, solar and wind resources and other yet to be discoverd resources like Geotherium ((in case you dont know, this is a very good fuel and perhaps the future fuel which is available in Philippines, particularly in Palawan)) . Thus, we wont have any problems with power. Huge sources of electric energy can be use convert water to hydorgen through electrolysis. We can replace petroleum products with hydrogen which is more environment friendly. With this, we wont have to rely on expensive imported fuel in which the government is benefiting a lot .

3. Prevent the Religious Communities from "too much" interference with the governtment. Although a lot of people would disagree, but it's a fact that the Religious Communities in our country are sometimes hindrance to our growth and development. One good example is family planning. Religious Communities, (particularly Roman Catholic) dont agree with modern method of family planning which is one of the major causes of the rapid increase of population. Too large population means too much responsibilty for the government.

4. PAY ALL THE PROFESSIONALS WITH COMPETITIVE SALARIES SO THAT WE WONT GO ABROAD!!. Only few skilled people are left in the Philippines because most of the talented and skilled ones go abroad.

.. og daghan pa, kapoy nalng og type..

[yowenn]

lets just face the reality that we cannot stop or solve it!