How to stop or solve the poverty in the Philippines?

[al1974]

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Friday, May 01, 2009- StreetStrategist
Hyperwage Theory is 7 Years Old Today
The idea for Hyperwage Theory came to me sometime in 1995 when I was working among US and British expatriates in Hong Kong and was assigned to several world capitals (New York, London, etc) as a result.

The central idea of course is Purchasing Power to the lowest worker. However, at the time, I did not have the full backing of economic principles to back up my discovery. Since then I have read many textbooks and history of economics with the eye of somebody going against conventional economic wisdom.

The first time I wrote about Hyperwage Theory (it was not called Hyperwage Theory then) was on May 2, 2002 in my BusinessWorld column. That was the Part 1.

Therefore, officially, Hyperwage Theory is 7 years old today.

However, part 2 was actually written in 2005 (three years after Part 1). It was in Part 2 that I settled on the name Hyperwage Theory.

I actually wanted to call it "High Purchasing Power Theory" but this phrase was too wieldy, too long, too generic, and lacking the originality of an freshly invented word. And people will be referring to it as HPPT Theory?

I settled on Hyperwage Theory although this term alone scares away first time readers.

I figured, Hyperwage is a controversial term, but, hey, I invented it and its catchy and short.

Part 1 by itself is self-contained, it described the theory and principles behind the theory. It should prove to be self-evident.

Part 2 and the series was serialized for 33 weeks (whew!) in 2005 and the series was the detailed explanation of the basic tenets mentioned in Part 1.

For all intents and purposes, the economic policy makers and the government executives were exposed to Hyperwage Theory in 2005 (four years ago).

Hyperwage Theory made the term "purchasing power" fashionable, and I am happy that I achieved my first goal with my theory, and that is "awareness."

And you can read so many accounts purporting to debunk Hyperwage Theory but look at their arguments: Do they stand on solid ground or are they just repeating the ideas of the authors of textbooks.

And why do Third World people still line up at US embassies looking for that golden visa if not in search of Hyperwage?

As long as they cannot answer you that with common sense, don't easily believe those detractors. They are not saying anything new, they are repeating the same economic ideas that have perpetrated and actually worsened the poverty conditions in Thirld World countries.
Keep these in mind as your read the articles of the opponents of Hyperwage. (But remember, the government and the politicians have started to catch on: Purchasing Power is not a popular soundbite for them. Isn't that a signal, they are beginning to see the value of Hyperwage Theory?)

Now, Hyperwage Theory has become a byword, (the butt of jokes), and Purchasing Power is the economic jargon of the times.

Have you heard about "consuming power", "spending powers" "buying power" spoken by the senators, congressmen and economic advisers to the President?

Before 2005, purchasing power was hardly a word, they uttered.

Now, that they have dipped their feet in the pool, are they ready for US$1.50 per hour (or P20,000 per month) salary for the domestic helpers?

Whatsoever you do to the least of your workers, you do unto the economy.

[Tarmac]

The day congress or parliament succeeds in legislating a tenfold increase in minimum wage over five years without blood running in the streets is the day I will gladly treat foolonthehill to a cup of (P800)* Starbucks coffee.

*It would be P1,500 but price increases vis-a-vis wages are non-linear. And I haven't even accounted for currency devaluation yet, which is anyone's guess.

[Vince Russo]

The day congress or parliament succeeds in legislating a tenfold increase in minimum wage over five years without blood running in the streets is the day I will gladly treat foolonthehill to a cup of (P800) Starbucks coffee.

I would join you guys at Starbucks, but I think she and I broke up today... You know, that 800p cup of coffee would then require an extra 120p (15%) for the tip.

[unsay_ngalan_nimo]

This is a very hypocrite answer. So its okay for your kids to suffer or live a life that can not get better. Get real.

If your life can get better, then you can have a chance to make other people's lives better. If you can make your kid's life better, then you have made a difference.

hahahaha... supposed to be hyperwage is a solution to poverty... but i think hindi mo binasa nag mga post na ito...
tarmac p.41 p43 p49
dakota p.43 p44 p46 p48 p49 p50
scriptologist 47
vince russo p49
rickflag p49

so iwhat do i think of hypewage? a disgruntled employee who wants to have a bigger salry without thining of its side effect on the bigger picture of the economy..

this is about how to end poverty in the philippines and not make othe people sink deeper into poverty at others benefit..

i can give my child a better life by sendig him to a good school..

if you say hyperwage is the ultimate solution.. NO its not... EDUCATION is...

you're selling hyperwage like its a miracle drug that can cure all... but see hyoerwage wont work without proper education of our labour-- how they can be markey competitive if they are not educated...

hyperwage assumes that if implemented the number of unemployed will be cushioned by the hyperspending of those who are earning..

but see it will only make the gap between poor and rich greater...

so please hyperwage is not a solution.. its not like atong padak-an ang ato sweldo and everything will be ok... we will be ok.. but how about the rest of the population who will be jobless?

sa imo tan-aw inig saka sa ako sweldo kay maka-himo ko ug trabaho para sa uban.. it will take years bisan dako pa ka ug sweldo.. then there would be business closing down.. mu-even gihapon sa daku na prices...

so please lets not think of our own benefits...

we just have to break the cycle... education... pa rin ang best answer...

[unsay_ngalan_nimo]

I would join you guys at Starbucks, but I think she and I broke up today... You know, that 800p cup of coffee would then require an extra 120p (15%) for the tip.

hahahaha.. jolibee na lang ko oi... kay ang tax adto man sa US sa starbucks... support local company.. pwede sad SMB na lang ni... hahahaha

[unsay_ngalan_nimo]

Very shallow arguments.

and you have a very narrow mind to think hypewage is the only solution to all ills of this country.
actually im for hyperwage but i don think it should be implemented na ganun-ganun na lang as what you and mr.fool is trying to imply..

as what tarmac said there must be something like a safetynet.. kay dili man dayon gud mu-satbilize ang economy pag implement ana.. ther would be alot who would be jobless.. naa mu-step in dapat ang gobyerno... :d hahaha.. see we must work on corruption still...

[al1974]

Education, UnsayNgalan, will solve the ills of this country alone. I have pointed out again and again even if we all get educated overnight (which is impossible), slavery wages will still be there. Why do you think I am being selfish? Why do you think I am a disgruntled employee? Both are unsupported arguments. I might have even done more to help my Filipino brethren than you do. I might be employed better than you do and no offense meant on that. If I want the lowest earner to earn better I am thinking of the labor force who toils harder than any working executives, THAT IS SELFISHNESS? If I just kept mum that my brethren can not afford to send their kids to school and that I myself could, IS NOT SELFISHNESS?

Look around you- we are a country with the highest literacy rate. We have more degree holders (in percentage) compared to the US. We are educated. You don't know that?

[unsay_ngalan_nimo]

Education, UnsayNgalan, will solve the ills of this country alone. I have pointed out again and again even if we all get educated overnight (which is impossible), slavery wages will still be there. Why do you think I am being selfish? Why do you think I am a disgruntled employee? Both are unsupported arguments. I might have even done more to help my Filipino brethren than you do. I might be employed better than you do and no offense meant on that. If I want the lowest earner to earn better I am thinking of the labor force who toils harder than any working executives, THAT IS SELFISHNESS? If I just kept mum that my brethren can not afford to send their kids to school and that I myself could, IS NOT SELFISHNESS?

Look around you- we are a country with the highest literacy rate. We have more degree holders (in percentage) compared to the US. We are educated. You don't know that?

hahaha.. educated! hahaha.. we have the kind of education that is mediocre! go back sa mga gi post ni Dakota baka maymapulot ka...

literacy rate! hello ang ila gi-count ana kay maka-basa ra ug maka sulat and is that literacy to you? yup we are educated but are we skilled... those who leave this country are the skilled and the educated...

you're selfish becuase hindi mo alam na mari ang mawawalan ng trabaho.. at pano mo masosolve yun aber? padak-on pa maayo ang sweldo? wala na nga mapapsweldo pataasin pa...

basin mu uli si tarmac at dakota baka meron ka maalala.. they make more sense than you...

i dont think hyperwage is a mean... it could an end but not a mean...

[Dakota]

When I was an executive on Wall Street, I was quickly introduced to a concept that I heard of many times of as a child. Oddly enough, it carried the same name. GOLDEN GOOSE. As a child and as a adult all are searching for the goose that lays the golden eggs. We will have money to solve all our problems with the goose doing all the work. Sounded great as a child, still sounds great as an adult. The difference is as a child you can dream of fairy tales but as an adult you cannot afford to. Theories like HWT are the golden goose fairy tales. No one does the value added work but the golden goose but all get rich. Where is that Golden Goose anyway?

[Dakota]

Quality education is the key building block in creating an employable population. Without this the Phils will not be able to create value added businesses and jobs, and attract outside investment.