Consumption Driven Philippine Economy

[uls]

the taipans are the only ones getting richer

their businesses are capturing all the consumer spending

they own the malls and major retailers

they own the biggest real estate devt companies (that's where people invest their savings)

[uls]

from the article posted by Monseratto

Easy credit has also led to inflating housing and consumer prices.

exactly

aside from OFW money flooding the economy consumers also have easy access to credit (credit cards, car loans, personal loans, housing loans)

you'd think everyone's getting rich

many are just piling on debt

[safeorigin]

A contrarian view, however, would say that we are getting richer since foreign countries are willing to export their resources for less.

but then,

Tim: Writers such as Bob Murphy had given you a hard time on what seemed to be your anti-trade deficit views, though Murphy has since admitted that you are right in your assessment of our current mess. Do you think a trade deficit is always bad for a country?

Peter: No. Trade deficits are OK under certain circumstance. 1. An emerging nation imports capital goods necessary to enhance its productivity. 2. A developed nation, with a current account surplus, uses some of its investment income to finance the purchases of additional consumer goods from abroad.

The problem with our deficit is that we import consumer goods we can not afford to pay for with either exports or foreign earnings. As such we accumulate external liabilities that we will never be able to repay and our nation’s future productive capacity continues to deteriorate. We are de-industrializing and are condemning ourselves and future generations to falling standards of living.

Interview with Peter Schiff

[uls]

^^^

Trade deficits are OK under certain circumstance. 1. An emerging nation imports capital goods necessary to enhance its productivity. 2. A developed nation, with a current account surplus, uses some of its investment income to finance the purchases of additional consumer goods from abroad.

The problem with our deficit is that we import consumer goods we can not afford to pay for with either exports or foreign earnings.

but the Philippines imports more consumer goods than capital goods

it's not like we're importing industrial robots and machines for manufacturing

we import tons of consumer goods just like the US

[jpdm]

the taipans are the only ones getting richer

their businesses are capturing all the consumer spending

they own the malls and major retailers

they own the biggest real estate devt companies (that's where people invest their savings)

Agree here.

[rollyic]

the taipans are the only ones getting richer

but before they become millionaires/billionaires, the Philippines is dominated by mestizos...
they just work hard.
and that should be we all do to replace these taipans ;)

[uls]

but before they become millionaires/billionaires, the Philippines is dominated by mestizos...
they just work hard.
and that should be we all do to replace these taipans ;)

the mestizos became complacent

they rested on their laurels thinking they'll never lose their place in the social-economic order

succeeding generations are too spoled to work. they only know how to spend. businesses failed. property sold off to finance their high living

while the mestizos were squandering their wealth chinoys were accumulating

kaya ganun

__


when i said "the taipans are the only ones getting richer" i didnt mean it in a bad way

and i wasnt referring only to ethnic chinese

kasama doon mga Ayala and other non-chinese billionaires whose businesses capture most of the consumer spending

[_Cathy_]

Good for the Ayalas that they are able to hold and grow their wealth for over a century.

Sent from my GT-N7100 using Tsikot Car Forums mobile app

[jpdm]

^^^




but the Philippines imports more consumer goods than capital goods

it's not like we're importing industrial robots and machines for manufacturing

we import tons of consumer goods just like the US

Again I agree. We import more consumer goods than capital goods used to produce other goods. So our huge trade deficits year after year are not healthy.

[Ry_Tower]

the mestizos became complacent

they rested on their laurels thinking they'll never lose their place in the social-economic order

succeeding generations are too spoled to work. they only know how to spend. businesses failed. property is sold off to finance their high living

while the mestizos were squandering their wealth chinoys were accumulating

kaya ganun

__


when i said "the taipans are the only ones getting richer" i didnt mean it in a bad way

and i wasnt referring only to ethnic chinese

kasama doon mga Ayala and other non-chinese billionaires whose businesses capture most of the consumer spending

My boss told me na may chinese philisophy din daw na usually, even sa chinese, third gens yung umuubos din nang pera kasi nga spoiled na eh. So even now na they are on top, they are wary of that pitfall. So that bodes well for them because they have learned from history.