A Failure To Understand Basic Economic Principles Leads To Filipinos With Backward Thinking
Whenever I think of that cartoon above of the intellectual Pinoy vs. the anti-intellectual Pinoy, I think that a lack of knowledge of basic economics is leading to backwards thinking... not just on the part of the government but also in the culture of the people plagued with anti-intellectualism. It made me think do these people even bother to realize what affects economics?
Supply and demand is natural law
I was thinking of the stupid strikes done by them Failipino activists (due to their failure to understand what's good for the Filipino) demanding for lower prices when supply is low are ignoring the laws of supply and demand. One doesn't have to have a Ph. D in economics or an MBA degree to understand the law of supply and demand. Either it's been taught in high school or in the basics of an economics subject in college. I mean, do they even know that if supply is up and demand is low, prices go low and if supply is down and demand is up, prices go high? Prices are increased to lower demand because not everyone can be met and when prices are decreased, it's because demand has become too low and there's a surplus. I may not understand it in a more concrete manner BUT I can understand that as basic as gravity or air. Unfortunately their anti-intellectual attitude explains their actions.
Currency appreciation and depreciation
When I think about it, most people even think peso devaluation is entirely a bad thing but it's not always a bad thing. Do they know that an appreciation of the Philippine peso can also discourage exports? While appreciation means you have more buying power, your selling power can be affected. It means that quality Filipino products will look too expensive. It's just stupid how they can rejoice that the Yuan has devalued then cry when the peso has devalued. If the yuan has devalued then any non-Chinese brand that's Made in China (ex. appliances, gadgets) would mean, that anything that was manufactured in China may sell at a cheaper price. What they may be ignoring is that peso devaluation also means that quality Filipino products can become competitive abroad. Devaluing and appreciating the Philippine peso is a time to change strategies.
Economic polices can lead the Philippines to become poor or rich
I don't know why most Filipinos refuse to understand the that foreign investment is not foreign invasion. If you consider this, the stock market is also affected by economic events, political events and changes in economic policy can determine economic outlook again, based on supply and demand. If the Philippines will choose to repeal 60/40 policy and allow 100% then more foreigners will come in to give more jobs and employment. However, it must also do a certain degree of restrictions like only reputable companies may be approved or that, foreign companies must still comply with all the agencies andlabor laws to balance the playing field. If they want more jobs and better economy, they should accept economic liberalization because their stupid economic policies are feeding the oligarchy's power even more. What's worse is I feel economic protectionism is more of a decision of the majority than the government, which in turn allows the oligarchs to take the opportunity to control of the masses.
Political events can also affect the economic performance
Economic policies can also be dictated by political events. I am afraid that one of the reasons why we have bad politics is because of stupid people who keep voting for stupid people in power. It's stupid that leftist groups like Migraine International and Bobo Muna get into power. For Bobo Muna we have had Satur Ocampo, Toady Casino and Lisa Maza with their nonsense economic policies, paying their followers to oppose economic liberalization as to pressure the stupid government to heed to the voices of the stupid people. If I'll talk about the Marcoses, deny as the Marcos loyalists must but their beloved Ferdinand E. Marcos Sr. really stole a lot of money, therefore leading to bankruptcy. The late Cory Aquino's inexperience also failed to bring real change after the Marcos Years. Later presidents failed to see the errors of the 1987 Constitution and correct it for the betterchoosing to stick by it... and as much as I like Senator Miriam Defensor Santiago but her failure to see the errors in the constitution is definitely a weakness of hers. Unless leftists are not allowed to run, expect more leftist policies to ruin the economy.
Events that's not in the direct or no fault of the state affect economics
There are just some things you cannot avoid like an invasion (ex. China's current government has gone imperialistic and is harassing neighboring countries), mishaps (ex. the Valenzuela fire or the Tianjin explosion) or natural disasters (Typhoon Yolanda and the earthquake) that have affected the Philippines. I mean, logic tells you when disasters happen, expect supplies to go low and prices to go high. When Japan was hit by the tsunami and the nuclear leak which was not at all good for business. During Yolanda, business in Philippines was really bad. Those are factors that really need one to be prepared for because they are beyond the control of the state. If we fail to understand that a state of non-readiness leads to more disasters and that we cannot prevent a tsunami or typhoon, then the more we are destined to lose more money in the long run no thanks to Palpakman.