Correlation is not causality is a principle
that has yet to sink in into the minds of Filipinos. I guess that’s one
of the reasons why they keep on falling for statist nay fascist
charlatans of all shapes and sizes.
One of the persistent archetypes is that of the “Iron Man” and the “Iron Fist” as harbingers of economic development.
If it were so, Pyong Yang and the entire North Korea would be fully developed by now.
Mao’s China shouldn’t have starved.
The Singapore of 1950 shouldn’t have been a ghetto.
Soviet Russia’s stores should have been bustling with goods for Kruschev and Gorbachev.
Ho Chi Minh’s Vietnam would have been roaring with economic activity.
The Philippines under Martial Law should have remained as Asia’s best
performing economy next to Japan (like the Philippines BEFORE Martial
Law).
Davao City should have been a bustling metropolis in the 1980s when
cops and drug retailers were being shot left and right under the “iron
fist” of the kangaroo courts.
This is the reality that’s not being presented to people because it
bursts apart the brands built around the personality of “Iron men”.
Economic Turn Arounds Are Driven by Economic Policy – Not Personalities
Let me break it down to the most simple terms.
A Duterte, a Lee Kwan Yew without an economic policy – is just a thug.
A Duterte, a Lee Kwan Yew with an economic policy – is a thug with an economic policy.
Do you really need the thug – or do you need the economic policy?
What does history teach us.
Lee Kwan Yew copied Hong Kong’s Laissez Faire economics. Singapore
(and Hong Kong) are among the worlds most economically free countries – a
magnet for Filipino job seekers. These countries’ employers are willing
to pay what Filipino employers can’t.
But Lee also toyed with social engineering including population
control – ending with the government now encouraging Singaporeans to
have more children.
These policies are more visible to people. You know the – notorious FINE city.
Activities like whacking a jeepney driver or a trike driver who can
only stare back at a tyrant backed by a coterie of tax-funded bodyguards
at that – are regular news headline attention getters.
But let me ask you – does a company or a business invest in a
location because the government will make people pay a fine if they
stick a gum or put drug dealers to death – or because a jeepney driver
gets beat up once in awhile?
If it were so, Venezuela, Cuba, and North Korea should be bursting
with business activity right now. But it begs the question – are they
bursting with activity? Are their residents enjoying the basic
conveniences of modern day living? Surely we don’t want to get to the
point of using highly devalued currency for toilet paper as was done in
the socialist utopia of Venezuela.
In like manner, businesses that sank their money in Davao did not do
so because corrupt cops and small time drug retailers were being shot –
or that Davao had a tough talking government official.
In the overall scheme of things – the government is just a cost of doing business.
There is money to be made from doing business with government but it
can only do so much. To generate revenues of scale – you have to access
the mass market.
And that is the appeal of Davao – a consumer market of 2 million
people in a typhoon-free city – a gateway to an island of 15 million
people.
The incentive of not paying local property taxes and business permit
fees for the next three to five years depending on the project let’s
businesses retain the money for expansion purposes.
Without the revenues collected from these businesses – the LGU will have jackshit to waste.
It’s not about handing your money over to government who will waste your money on nonsense COA-exempt programs.
That my friend’s is all about the money – keeping more of it and making it grow.
Duterte can federalize all he wants.
Duterte can kill as many as he wants. But for as long as the 60/40
and similar protectionist policies remain – the question begs to be
asked – how is that any different from Marcos martial law really?
But then what makes Duterte so palatable to a lot of Filipinos?
Because Filipinos are fascists that’s why.
What’s the attitude of the pinoy poor? Pass a law! That’s what.
- Blame the rich for being greedy.
- Ask more subsidies.
- Ask to increase the minimum wage.
- Blame drivers for traffic congestion
With a Duterte, Filipinos think that the laws will be passed quicker
because Duterte can strong arm the legislators better than any of his
predecessors.
Noynoy talks with money. Duterte will talk with guns, money, and fists (not necessarily in that same order).
But, this is the biggest danger of all because government regulation
leads to more complication – which needs more government intervention –
an endless taxwasting loop of Gordian proportions.
Of course, cutting the Gordian knot of government spending is the
obvious solution – but that is a solution that remains in the blind spot
of Filipinos who, like sheep, are so fixated with being led by their
shepherd, to the slaughterhouse.
***
What’s the attitude of successful non-crony entrepreneurs?
None of it have nothing to do with government!
Steer clear of people that suggest your financial dreams are born of
greed. Avoid get-rich-quick schemes, be ethical, never give up, and once
you make it, be willing to help others get there too.
***
“Poor makes no sense.
I have been poor, and it sucks. I have had just enough and that sucks almost as bad.
Eliminate any and all ideas that being poor is somehow OK.
Bill Gates has said, “If you’re born poor, it’s not your mistake. But if you die poor, it is your mistake.”
***
Avoid debt that doesn’t pay you.
Make it a rule that you never use debt that won’t make you money.
I borrowed money for a car only because I knew it could increase my income.
Rich people use debt to leverage investments and grow cash flows.
Poor people use debt to buy things that make rich people richer.
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