It's really amazing how a lack of basic knowledge in economics can keep one's mind in the stone age, doesn't it? Now, I think it's time to tackle with the whole inflation scare that even basic goods are now preposterously expensive.
Here's one thing that needs to be said and I'll say it in Tagalog, "Kapag bibili ka sa mall -- talagang mas mahal! Kapag bibili ka sa merkado eh mas mura!" In English for non-Filipino readers, that means, "If you're going to buy at the mall then it's going to be more expensive! If you're going to buy at the public market then it's going to cost less!"
Well here's something about the leasing business. Rentals tend to increase every five to 10 years for this reason. We have currency devaluation, rising cost of utility expenses and building depreciation. If you don't pay me up then how can I carry out maintenance? Malls tend to keep on improving and the cost of doing so is very high. Malls have very high cost of utilities so if they can't collect higher rent from tenants then how can they survive? This in turn causes tenants to sell higher because rent is higher. It's like my favorite restaurant transferred to a better location -- at the cost that they have to sell their food higher so they can continue paying rent and gaining profits!
So why is buying farm products at the market cheaper? It's simple. Do those vendors really pay that much of a higher rent? No. It's public space. They may be using electricity but they don't use airconditioner in the open space. Some smaller stalls may be using airconditioner but it's still a very small space. In short, the electricity of a small wholesale store won't cost as much as the one the mall is using.
You don't need to be a business administration or economics graduate to understand this! It's all knowledge in basic economics. Yet, idiots still continue to blame incumbent presidents for inflation never mind that worldwide factors play a part too such as Donald Trump's poor economic policies or the rise of the price of crude oil in the Middle East. Get it?
Well here's something about the leasing business. Rentals tend to increase every five to 10 years for this reason. We have currency devaluation, rising cost of utility expenses and building depreciation. If you don't pay me up then how can I carry out maintenance? Malls tend to keep on improving and the cost of doing so is very high. Malls have very high cost of utilities so if they can't collect higher rent from tenants then how can they survive? This in turn causes tenants to sell higher because rent is higher. It's like my favorite restaurant transferred to a better location -- at the cost that they have to sell their food higher so they can continue paying rent and gaining profits!
So why is buying farm products at the market cheaper? It's simple. Do those vendors really pay that much of a higher rent? No. It's public space. They may be using electricity but they don't use airconditioner in the open space. Some smaller stalls may be using airconditioner but it's still a very small space. In short, the electricity of a small wholesale store won't cost as much as the one the mall is using.
You don't need to be a business administration or economics graduate to understand this! It's all knowledge in basic economics. Yet, idiots still continue to blame incumbent presidents for inflation never mind that worldwide factors play a part too such as Donald Trump's poor economic policies or the rise of the price of crude oil in the Middle East. Get it?
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