How to stop or solve the poverty in the Philippines?

[SioDenz]

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vote and be heard this coming election, char!

Nya ug way tarong nga nagpapili? choose the best among the worst nlan..

[bhuknoy]

self discipline and stop corruption........

[al1974]

If Hyperwage will be implemented- Yes, some companies will close because they cant afford hyperwage (higher) salaries. BUT the following will take place:
1. Higher paid workers will be more productive.
Those who can not afford high salaries for their employees will have to cut down manpower and might have lesser employees with more responsibilities but with better compensation. OR they will not hire people and have to be the one taking care of their business. If you noticed, in US, small shops/companies are manned by the owners themselves.

2. Lesser people working but better income per family. Imagine- only the father will work but he will now be able to raise his family. The mother can now tend to the kids and may not afford a helper due to higher pay even for helpers. Kids can be well-raised with the mother around.

3. People can now afford more food, houses, appliances and even cars, etc. So this would mean more purchases thus stimulating income. Precisely what the US govt is doing now to save the economy---US is creating economic stimulus--- to increase purchasing and stir economic activity. Imagine- every working individual will now afford to buy their needs.

4. We will not have brain drain. No need to go abroad if we have higher salaries here. Families are now intact. No kabit, no drug addict son, no abused OFW...

5. Even the govt employees will now be highly paid. So lesser red tapes, padangug, etc.

6. Corrupt companies- those who cheat and don't pay enough salary will close because they can not afford hyperwage salary.

7. Wealth will be equitable- meaning well-distributed.

8. People will now afford basic goods, health services, etc and may not rely on the government for this. So the government will only have lesser projects to implement- and that means lesser kickbacks.

9. Imagine- in US, a hyperwage country, a laborer's one year salary is almost equivalent to 10 years of working here in the Phil. My friend who works as a nurse in London says his 2 days salary there can buy a 20 inch TV here. A nurse here will take at least 15-20 days working to buy that. A maid in HongKong earns 20-25 thousand a month, our maid here is paid 1,500-2,000 a month. And some things in first world countries are even cheaper than in the Philippines.

[davanitz]

@ foolonthill, please post the link to documents about the hyperwage theory. It's quite interesting... i also want to know if it is applicable here in the Phils (realistic), and how will hyperwage theory be implemented considering the economic and political turmoil, nya sa kinaiya pud sa mga pinoy...

Street Strategist Hyperwage Theory

Let me know if you want a copy of this book with the author's signature.

[hobie]

I've heard about the hyper wage theory sa economics class nako 5 years ago. It's very hard to implement daw, near to impossible. So, better focus on something near possibility.

[unsay_ngalan_nimo]

Abaya is NOT an economist.

He has not studied this subject of poverty as much of the author of hyperwage has.

Abaya's narration of events while at first looks logical, actually are not. There is a latin maxim to Abayas error but in english it means that he makes the illogical mistake that just because Event B happens after Event A does not automatically mean that Event A actually caused Event B. post hoc, ergo propter hoc or somethinbg like that . google it.

This is the the same error in logic when people say
all catholic nations are poor
or all former US colonies are poor. This is not physical evidence to this, just another post hoc fallacy.




Mr Ngalan, trust your own logic, read the book and identify what you think is illogical about it. YOU are teh sole judge.


Dont swallow Abaya without thinking just bec he happens to say the things that have been ingraine3d in your brain by the old textbooks.

And dont reject Hyperwage without analyzing it. Remember, the author is a contrarian, and contrarians are experts of the traditional theory; otherwise how can they become credible contrarians (of course, those who disagree just for the sake of disagreeing are not the contrarians mentionded here)

i think mt. bentulan also made the same faulty logic when he said that high prices of commodity will make people think twice about their family size... if you will look in other thread on church role on reproductive health the problem is those who cannot afford are the one who actually have bigger families.. therefore mr. bentulan's stament is an error... beacuse its not actually high prices of commodity which makes people think twice about family size...

why compare the country to US and JApan... i thought the hyperwgae theory is for the third world only and not applicable to the first world...

mr.bentulan is not an economist either...

[unsay_ngalan_nimo]

I still think that we have better chance if we strengthen first our homegrown industries and businesses... develop our own industries...

[unsay_ngalan_nimo]

Abaya is NOT an economist.

He has not studied this subject of poverty as much of the author of hyperwage has.

Abaya's narration of events while at first looks logical, actually are not. There is a latin maxim to Abayas error but in english it means that he makes the illogical mistake that just because Event B happens after Event A does not automatically mean that Event A actually caused Event B. post hoc, ergo propter hoc or somethinbg like that . google it.

This is the the same error in logic when people say
all catholic nations are poor
or all former US colonies are poor. This is not physical evidence to this, just another post hoc fallacy.




Mr Ngalan, trust your own logic, read the book and identify what you think is illogical about it. YOU are teh sole judge.


Dont swallow Abaya without thinking just bec he happens to say the things that have been ingraine3d in your brain by the old textbooks.

And dont reject Hyperwage without analyzing it. Remember, the author is a contrarian, and contrarians are experts of the traditional theory; otherwise how can they become credible contrarians (of course, those who disagree just for the sake of disagreeing are not the contrarians mentionded here)

i think mt. bentulan also made the same faulty logic when he said that high prices of commodity will make people think twice about their family size... if you will look in other thread on church role on reproductive health the problem is those who cannot afford are the one who actually have bigger families.. therefore mr. bentulan's stament is an error... beacuse its not actually high prices of commodity which makes people think twice about family size...

why compare the country to US and JApan... i thought the hyperwgae theory is for the third world only and not applicable to the first world...

mr.bentulan is not an economist either...

[Tarmac]

Mr. Bentulan uses the "CK 1994" study as validation of his Hyperwage theory. To summarize, New Jersey passed a law in the early 90s that upped minimum wage by 18.8%. Instead of increasing unemployment, the study showed the opposite happened. Employment in the fastfood business (the sector analyzed in the study) in the State of New Jersey increased instead.

Using this study, Bentulan triumphantly declares his hyperwage theory has been validated. He harps on it constantly.

I see one major flaw in this argument.

How are we to know that the increase in employment was brought about by increased minimum wage and not by other factors? Does the CK study itself explicitly credit the increased employment solely to a rise in wages, as Mr. Bentulan might suggest, or did he just read that into the study? Did New Jersey's higher minimum wage in fact allow its denizens to eat more burgers?

Nope. At least not by its lonesome. CK1994 did not happen in a vacuum. It must be placed in proper context.

Remember that in the 90's, the United States experienced a prolonged period of rapid economic expansion. The increased prosperity was brought about not so much by legislated increases in minimum wage as Mr. Bentulan would have us believe as it was by an explosive growth in consumer credit. The 90's saw a 90% rise in consumer credit. As never before, Americans could suddenly buy a house (or two), an SUV, a computer, kids' college education, an expensive pair of shoes or that dream vacation--all on credit. And it couldn't have been easier. Credit card companies were dealing out credit cards like they were playing cards. Mortgages were being granted with little regard for capacity to pay.

President Clinton did not involve the United States in any prolonged and debilitating military campaigns (outside of peacekeeping missions). Because of this period of relative peace, Federal and military spending decreased. This meant he could introduce tax cuts in 1997. This resulted in putting even more money in the hands of the American citizenry and economic growth accelerated some more. As did easy credit.

In fact, the 1996 legislated increase in the Federal minimum wage which Mr. Bentulan implies was a way of increasing employment (and hence purchasing power) in states other than New Jersey, may have been passed on the back of a general rise in prosperity. People simply felt they could afford to pay minimum wage workers more and backed it up with legislative fiat.

Purchasing power certainly increased, that is true, but not entirely due to increased minimum wage. Credit growth far outstripped any legislated wage increase 18.8% to 90%.

In the end, this increase purchasing power was merely illusory. While easy credit played a big part in fueling the economic boom of the 90's, it finally came home to roost last year when Americans suddenly realized they had houses they couldn't pay for and that they were in hock for many years. In effect, their salaries for the year and the year after were already spoken for. But then that's a subject matter that deserves a thread of its own.

But to summarize, New Jersey's new wage law by its lonesome did not result in increased employment in the New Jersey fastfood industry as Mr. Bentulan believes. The increased employment could instead be attributed to the significant rise in economic activity that prevailed throughout the 90's aided by the rise in consumer credit and a feeling of general well-being.

(Note: the CK1994 study compared NJ vs Pennsylvannia growth figures. PA did not increase minimum wages in tandem with NJ. According to Mr. Bentulan, the CK study showed that NJ showed a higher employment growth figure than Eastern Pennsylvannia. Perhaps this can be explained by the fact that dominant industries in Eastern Pennsylvannia--iron, steel and coal--were in decline even through the 90's)

If Mr. Bentulan wants to convince us that his hyperwage theory has been validated historically by CK1994, he'll have to do better. CK1994, which examines only the fast food industry in New Jersey, fails to prove his case, in my opinion.



Federal Statistics on Consumer Credit:

Federal Reserve Statistical Release G.19 Historical Data

[hobie]

I still think that we have better chance if we strengthen first our homegrown industries and businesses... develop our own industries...

Sakto2, focus on the inside first before the outside.