High prices often confront us. Government is trying to control inflation, which is increasing beyond its desired levels—an ideal of about 2% annually but currently is about 9%. Why do prices increase and why do they drop? Why do things appreciate and increase in value over time? Why do they depreciate? Market forces, we are...
Almost a month into 2023 and the rain still won’t stop in certain parts of the country, as though portending a bad time ahead despite the lunar new year’s promise of “a year of recovery.” The “shear line,” or the point where the cold northeast monsoon meets the warm easterlies from the Pacific—a relatively new...
We are not a “backward” economy. It’s just that economies capable of producing sophisticated manufactures necessarily require economies that must specialize in raw material or labor exports. That’s global capitalism for you. Ours is a developed capitalist economy to the extent that the capitalist economic system that grips the world today is already fully mature,...
Before leaving for the World Economic Forum (WEF) in Switzerland, President Ferdinand “Bongbong” Marcos Jr. said he will “highlight the significant economic gains we have achieved in the last part of the year.” He is the only leader eager to attend from Southeast Asia. The WEF was set up in 1971 as a global multistakeholder...
The Philippine public land transportation industry was beset with problems during the Covid-19 pandemic. With restricted mobility and physical distancing measures enforced as early key strategies to mitigate the spread of the coronavirus, it was inevitable that the livelihood opportunities of transport workers would be negatively affected as the number of trips and passengers dwindled. ...
Despite the economy’s recovery from the recession induced by the pandemic, workers faced a worsening crisis in incomes and jobs in 2022. Thus, while businesses were slowly recuperating, formal and informal workers continued bleeding from wage and income erosion, job losses, and a fall in employment quality. Inflation climbed steadily for the whole year, from...
A wealth tax is based on the market value of owned assets minus debts and other liabilities, i.e., one’s net worth—anything that has monetary value. These include cash, landholdings, bank deposits, shares of stocks, vehicles, real property, pension plans, crypto funds, housing, trusts, jewelry, yachts, planes, works of art, antique collections, copyrights, etc. Opponents from...
As the battle shifts to the Senate after the House of Representatives overwhelmingly approved the bill creating the Maharlika Investment Fund (MIF), a former official of the Bangko Sentral ng Pilipinas (BSP) has called on the public to amplify its objections to the measure. Diwa Guinigundo, BSP deputy governor until 2019, said that while the...
Let us reflect on process and progress. The more common source of failure to progress is “circling”—moving round and round in circles, only to arrive at the original location. Many things have been said about the proposed “Maharlika Wealth Fund” (MWF). Now the framers are scrambling to make the legislation enabling it, House Bill No....
The cost of administering the Maharlika Investments Fund (MIF), the Philippines’ sovereign wealth fund to be established should the bill seeking its creation be passed into law, is alarming many Filipinos. Its ability to generate the “consistent and stable investment returns” that its proponents tout is also raising loud questions. One wonders how the Fund...
