Friday, January 2, 2015

Impending price hikes give way to Consumer led War in 2015 plus Dr. Joel Yu's Theorem

I don't get it. I simply refuse to believe that the so-called economic progress achieved by the economy is simply a mirage. Why so and why is the public expressing incredulity for all of these things? Very simple.

This so-called "progress" has not benefitted the general public especially the poorest of the poor. Fact is, only less than 1% of the population probably felt this alleged progress that explains why there is a buying spree so to speak, of luxury items and big time property purchases.


And I predict that CONSUMERS will lead the war against this present dispensation in 2015.

For me, the explanation put forth by Metropolitan Manila Waterworks and Sewerage System administrator Dr. Joel Yu on the impending water fare increase is preposterous. He is using the foreign currency differential as basis for the fare hike. He says that the stronger the peso becomes, the  most likely water companies lose profits. That's why they need a price hike? Huh?

I call this convoluted explanation by Dr. Yu as "Dr. Yu's theorem" where improving economy equals higher rates of things. Where did Dr. Yu get all these crap?

President Aquino always mention the phrase "inclusive growth" which for him means, the more economic benefits being reaped, the more people get benefits. Fact is, if there is a windfall of economic benefits, surely, the people must get these benefits since they, the people, are the ones responsible for making this economy palatable to the tastes of foreign and local investors. What is the basis for saying that? The Philippine economy is benefiting from high consumerism. People are buying things. Companies are investing more because they recognised the rising consumerist sentiment. Plus of course, property purchases are rising and investors are building more commercial spaces to accommodate the rising number of Filipinos investing and building their own businesses.

Dr. Yu and President Aquino share the same indigestible explanation behind this so-called "inclusive growth". For them, this means windfalls from the improving economic situation must go to the top families first and wait till it trickles down to the masses. That's "inclusive growth"--elites must enrich themselves first, before the people. The people stay as consumers and slaves of capitalism.

Bull. crap.

This is a very dangerous proposition because it leads us to an inevitable clash of classes. There will come a tipping point in all of these things. And this tipping point will surely come very soon and institutions of counter-dissent will find it extremely hard to manage this explosive situation.