How to stop or solve the poverty in the Philippines?

[foolonthehill]

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Titles are meant to be general that is why there is usage of the term.. jer jer used to have no meaning..

dont split hairs. focus on the essence. you know that poverty cannot be ended. its common sense that we are talking of reducing it.

Ok. You need to change your title now.

"How to stop or solve the poverty in the Philippines? "

[scriptologist]

Ok, sorry I'm confused. I didn't read all the posts. Perhaps create a new topic on this one?

[foolonthehill]

we are not talking about you who has in Yvi degree.

we are talking about the maids, the janitors, the waiters. they deserve a higher min. wage law (not free market; a min. wage law is a law).

free market in the phils, the manager of Jollibee gets a higher wage than the min. wage. That is free market.

However, the poor maids, no education, they have no means of defending themselves. They need high wages, now.

and you said Hyperwage is unviable? Hyperwage DOES NOT remove free market (except for min. wage).

Just like in the US, Hyperwage wants to set a higher min. wage, and the theory doesnt care how much IVY people like you will be earning.

Read the book sir, and then if yuou dont agree cite specific principles that Hyperwage violated, not some speculatiion like run-away inflation.. that is just mere speculation.

You are educated sir, do you make your theories on speculation?

The US is a hyperwage country. that is proof.

The reason I enjoyed so called "hyperwages" is because the free market assigned wages to me that were in line with the vaule that I created. My wages were not arbritarily increased. This is the most compelling reason why the hypewage theory is highly unviable. It violates the fundamental aspect of many economic principles including one rarely mentioned here, Theory of the Firm, and Price Theory. The wage earners value must be in line with the value it creates. Most goods and services especially the ones dicsussed here are price elastic. That means a change in price will cause a change in quantity demanded. Arbritarily increasing ones wages without without a corresponding increase value wil only make this problem worse. Now if you add in the effect of the International Fischer effect on the GNP, inflation, and currency values you may recognize how this will not work in a global market.

While I have not read the book cover to cover, I acknowldege I am not an expert on this theory. But I do know this, even the most complex equations fail because of a single bad assumption. You may may have 1000 assumtions right and still be wrong because on one iss. This theory violates basic economic principles. The reality is there is no free lunch. This theory intends to supply one. Highly unlikely it can be done.

[foolonthehill]

Dakota,
you claim to be highly educated, and yet you say hyperwage violated principles? what principples?

hyperwage wants a min. wage of $1.50 per hour, the USA has $7.00 per hour

what is violated here? the USA is the firstr violator of your Free Market, and you got your education from there?

Why did you study in USA? bec u have no confidence in our colleges?

Isnt bec the best intellectual minds are there? why? bec the best minds go to teh highest paying countries. This is written in the hyperwage book!!!

and why did Jollibee go to USA? bec of low wages?

The reason I enjoyed so called "hyperwages" is because the free market assigned wages to me that were in line with the vaule that I created. My wages were not arbritarily increased. This is the most compelling reason why the hypewage theory is highly unviable. It violates the fundamental aspect of many economic principles including one rarely mentioned here, Theory of the Firm, and Price Theory. The wage earners value must be in line with the value it creates. Most goods and services especially the ones dicsussed here are price elastic. That means a change in price will cause a change in quantity demanded. Arbritarily increasing ones wages without without a corresponding increase value wil only make this problem worse. Now if you add in the effect of the International Fischer effect on the GNP, inflation, and currency values you may recognize how this will not work in a global market.

While I have not read the book cover to cover, I acknowldege I am not an expert on this theory. But I do know this, even the most complex equations fail because of a single bad assumption. You may may have 1000 assumtions right and still be wrong because on one iss. This theory violates basic economic principles. The reality is there is no free lunch. This theory intends to supply one. Highly unlikely it can be done.

[foolonthehill]

why are you so worried about the agricluter insdustry? are you suddenly generous person now?

are you worried about them today? what have u done?

And if the law will give P20T to the maids, and then by chain reaction you will get P70T month, will you return it back bec the agricutulre industry will collapse (per ur speculation?)

stop pretending to care for them in case hyperwage is implemented, bec ur not caring for them now.

the solution-hyperwage- will not so much affect MNCs but it will kill first our own industries and businesses before it can actually be beneficial? more like wine... you need certain amount before it can be good for some parts of the body but then again it will also be bad for the other parts...

so how will hyperwage solve the onslaught of unemployment.. wait before that there would be alot of businesses that have to closed down.. not really like Mcdonalds... how about local construction companies, local garment factories, retails stores...

id like to ask mr.fool what is the likely effect of hyperwage to our agricultural industry? will they benefit more? or basin ang middle man na pud ang mu-benefit?

[foolonthehill]

Actually, dakota, it is you who has the biggest bad assumption.

You assume that Hyperwage violates the economic principles. Name one. It does not.

And economic principles are not laws of science. Only laws of science are inviolable.

the 13th month pay alone proves that higher wages will benefit all the stakeholders.

read the good summary by Al1974. his summary follows the chain reaction.


and read the book.

But I do know this, even the most complex equations fail because of a single bad assumption. You may may have 1000 assumtions right and still be wrong because on one iss. This theory violates basic economic principles. The reality is there is no free lunch. This theory intends to supply one. Highly unlikely it can be done.

[foolonthehill]

Your comment hits the head of the nail.

The anti-hyperwagers have focused on their unfounded speculations that the economy will collapsed under hyperwage.

They have forgotten: Dont Filipinos deserve a better wage? Now? They are working hard now.

And by the way, my co-Filipinos are toiling just like their counterparts in other first world countries. To some extent, they even offer more value. Why? Our labor workforce barely earns a living but these workforce are highly-skilled. When they go abroad, they are hailed as very good workers. Our college graduates works as cashiers, clerks and some even at fastfoods. They are offering value but their wages are inequitable to their credentials.

Don't you think the Filipinos deserve hyperwage?

[Dakota]

Increasing the wages of workers without a like increase in value of the goods and services will just reduce the quantity demanded. Most goods and services are price elastic due to competition and a global economy. Period end of story.

I made my wealth using these so-called traditional economic and financial theories. The reason why is that they are fundametally valid. Academics can argue about this aspect or that but in the end that is pie in the sky discussions which are not the real world where the rubber meets the road.

If you are so confident that Hype-wage will work I challenge you to sell your story. Take it to the World Bank, the Philippine Govt, the IMF, anyone and see what they say. You may want to start with the SSA and see what their take is on how it will affect their payouts. Then take it to the Bank of the Philippines and ask them out it will affect inflation, the value of the pesos, the gnp and the debt ratios. Real world experiences lead to real world consequences. When you have some to share, please let me know. That said, in my career I have been wrong many many times. I was successful because I was right on the important stuff more often than not. Sometimes its a coin-toss, and you have to be be lucky and catch a break.

I wish you the best of luck in your endeavors

[scriptologist]

What about this? Take note, this is just an idea, dunno the consequences yet.

1. Create a nationwide foundation dedicated to help each filipino for any purpose they need, like education, business, home building, etc...

2. Ask for a nationwide or worldwide (to those filipinos abroad) donations for this charity.

3. This foundation should not be handled by politics but to those civilians qualified (like foolonthehill) to avoid big corruptions.

4. Donations can be given on the foundations website (using paypal or any payment system), categorize by specific city or town the donation is intended to.

For every 5 pesos donation, 5 families can get 1 peso each. Only 200,000 5 pesos can make a million.

Whose with me? I'll make the website for free

If this is a bad idea, ignore it. I'm not an economist.

[foolonthehill]

They know it works but they dont know how to generalize this experience. and that is problem.

Hyperwage Theory simply gives the theory to what is already happening. Just like gravity.

And that is why I was convince of Hyperwage when I read it.

my line of thinking is now similar to hyperwage bec i read it many times, and my doubts were answered.

When maids are given P20T today, in 3 days time, all that money will go back to all the businessmen, so why would the economy collapse?

Tarmac, that is your answer. before you can blink, all the businessess will get them all the money back!

Also- The Hyperwage Theory gives the 13th month Salary or the December Season where everyone gets twice his salary in the form of that 13th month. The December season is a Hyperwage scenario where everyone is paid more and can spend more. The economy is a lot better in December- Sales are UP and there is economic stimulus.

Isn't it hyperwage in action?