Dutertenomics: Sustaining the  Economic Gains
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Worse than accomplishing nothing

Our people should not expect that the administration of President B.S Aquino would be able to accomplish anything. See how it destroys one by one what has been accomplished by its predecessors either with malice or neglect.   Stated in a straightforward language, this pretending-to-be-honest government   has done more to destroy this country. They would normally expect the President to exceed what his predecessors have accomplished.  Thus, people today are frantic about what they can do to save what the past governments have accomplished than expect this government to do something to help them.     

Take the case of the annual national budget approved by the rubber-stamped Congress to sustain the political vice of this self-righteous government.  In its debut in 2011, it sought to lavish itself with a budget of P1.645 trillion.  Congress approved it without much ado because they were swayed by the astronomical popularity of the President who, six months before the election, was considered a political rag for not having submitted any bill for legislation nor participated in a debate that would catalyze his personality as a statesman in the making.  Nonetheless, people had to give him the benefit of the doubt as they thought he was some sort of moral redeemer.      

For 2012, Congress increased the administration’s budgetary appropriations to P1.816 trillion.   It had to play along with the  game of “you scratch my back and I scratch yours”  for the simple reason that the Napoles  pork barrel scam had yet to be discovered, with him almost indicted by the high court.   The charade that we elected an honest and competent government continued, that for 2013, it obtained an appropriation of P2.006 trillion or 10.5 percent higher than that of the previous year.  For 2014, the national budget was increased to P2.265 trillion.   Again for 2015, that was increased to P2.606 trillion indicating that this government would not budge in to public pressure or bow down to court decision to give up its practice of bribing  political  sycophants in a system nicely called “political patronage.”    

Although there were already doubts as to where the huge appropriations were  being spent, Congress continued to lavish his good-for-nothing government, that for 2016, it appropriated a  gargantuan budget of P3.002 trillion or an increase of 15 percent from the 2015 budget.  Taken together, the expenses incurred by his government had reached a staggering amount of P10.734 trillion, surpassing all the expenses incurred since independence up to the presidency of Gloria Macapagal Arroyo.   As said, it is no longer a case of not having accomplished anything, but a case of having to use the money to destroy the economy. 

The government claims the country experienced a 6.3-percent growth rate in gross domestic product in the 3rd quarter of 2014.   The Left was quick to point that it came mostly from the service sector.   That means the income came mostly from the remittances made by overseas Filipino workers which are now being insulted by calling them “small-time smugglers” for insisting that their balikbayan boxes be inspected and taxed.   In clearer terms, the income represents their remittances. They are not from increased production and manufacturing.  Moreover, our people could hardly feel the increase in GDP.  In fact, they could feel more the impact of a depreciated peso which currently is valued at P46.72 to a dollar.  A weakened peso means a decrease in the purchasing power for our wage earners, and the same is true for local manufacturers because it means a higher cost for imports for raw materials. 

Maybe this government is still dreaming of the “wonders” made by discredited monetarist policy enunciated by US economist Milton Friedman; that the government should continue to spend more to pump prime the economy. Under that theory, the government should be fairly allowed to increase money supply, through budgetary increases, as a means to spur economic growth. They believe that by allowing more money to circulate, it would increase purchases/expenses that in turn would result in increased production. Our Amboy economists believe that the unguided flow of expenses is equivalent to investment, which is not.  In fact, for every increase in purchase only results to inflation which now explains why the Philippines is the only country that has a high wage that matches a high unemployment rate of 7 percent and underemployment rate of close to 27 percent.  Nothing of the huge budget allocated redounded to resuscitate the economy.   

The Amboys in Malacañang refuse to concede that investment means  money spent ought to be returned at a higher value, and only after realizing that can the investors divide what now partakes as their profit.   Continued expense is not investment, or that it will result in  profit, except for the seller of goods.    In fact, this explains why for the 20 years the Marcos government ruled this country, its budget reached only P486.273 billion because the wealth generated by industries from production  and manufacturing was able to stave off inflation and  maintain the value of the  peso.  Despite that, these pretending-to-be-honest Aquino governments insist that Marcos incurred a foreign debt of $28 billion. It is that legacy of the $28-billion debt his administration incurred that is constantly being pointed to as the reason why our economic remains in comatose without this government honestly asking why foreign debt now stands at $59 billion and poverty now stalks one fourth of our people.     

In fact, our foreign debt ballooned during the Marcos administration because of the currency manipulation and capital flight carried out by the imperialist in cahoots with the local oligarchy in the 1980s.   Adding to that was the decision by the Cory Aquino government to mothball the Bataan Nuclear Power Plant which the government incurred a $3-billion debt for the construction of a plant that never earned a singled centavo.   So, between the GDP that this government has been hooting and the decaying value of the peso, the people could feel more the latter because the peso they have could only buy less than before.   In fact, the baloney of conditional cash transfers has only exacerbated poverty.  The almost P50 billion annually given as dole-out to a population cosigned to become parasites is investment thrown to waste.  This government gives away public funds paid by hardworking people, and does not expect to be repaid in terms of goods produced or services that otherwise could generate added wealth for our people.  Rather, the conditional cash transfers only deepen us further into poverty, for the simple reason that nothing on what has been given to help would be returned to allow others to enjoy the fruits of what they created.


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