Monday, July 23, 2012

Why things don't change under Aquino

Six percent growth, that is one of the things President Benigno S. Aquino III says is one proof that progress and development has been achieved in the two year administration. Yes, we are seeing an expansion in the economy, but the thing that many people are really asking and want to have proof is---why is there no change in the economic condition of many?


The answer is simple--our system is not a compassionate one. Capitalism hinders the flow out of capital from those who control and manage it to those who are not. Capital remains in the hands of capitalists, and when they gain profit, profit stays where it is. 

Yes, capital is created by workers, yet, that creature profits the workers not. 


For the system to work, workers and majority of the people are relegated to function as consumers of the very things created by workers. Without consumption, products remain valueless. There is no profit because the value of the thing created stays without exchange. Value happens when exchange happens. Without exchange of the thing created, the cycle that completes production does not occur.


What we are seeing right now is big-time capitalists transforming their profit into expansion projects. Most Philippine companies are diversifying and entering into various industries. San Miguel Corporation is one primary example; PLDT is another. 


When profit stays at the top and no spillover happens, growth is therefore limited. Transformations occur in the top while below remains the same. 

When the economy stays as a consumerist one, and no change in the condition of the workers, that kind of economy will grow slowly and not by spurts. As capital accumulates without vigorous exchanges, value remains the same.


President Aquino will trumpet the alleged "gains" of the Pantawid Pamilya program or PPP of his administration. Aquino will say that the program added almost a million families more into the program. 


This PP program is supposed to augment incomes and ameliorate poverty. Instead, it is becoming more of a tool to perpetuate a patron-client relationship between government and those who are too poor to be called poor.



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