On the US "Fiscal Cliff" Scare

Reference to Associated Press' report, syndicated in the Philippine Daily Inquirer,

"Last-minute fiscal cliff talks in US Senate"

This damn "fiscal cliff" scare in the US has reached PH media. That scam is being sensationalized thru syndication in mainstream media, which have always promoted the interests of the rich and powerful 1% — in this case, the Wall Street elites and many of the US Republicans who would like to kill Medicaid, Medicare, Social Security, and other social entitlements. 

The so-called "grand bargain" between Obama and Congress is simply "austerity" — the same policies that stress out the Euro and deepen the crises in Greece, Spain, and Italy. The US and the world economy won't slide into a socially unbearable recession, let alone collapse, on January 1 or over the short-term if an austere budget will not be passed in Congress. The greatest power of the US so far is its ability to print US dollars; it's the issuer of the world's currency — thus, it cannot be insolvent or be forced to default!

The ways out of US and global economic crises: 

• put an end to finance-led capitalism; 

• be freed from the domineering influence of Wall Street; 

• tame the greedy animal spirit of the 1%; and, importantly, 

• employ, secure, keep healthy, and care for the 99%!

Alternative futures now!

Climate Justice and the Challenge of Going Green

This is a good and promising development for "climate justice". Developing countries (i.e., mostly the least emitters of greenhouse gases) can now export their wastes to developed countries (i.e., the big emitters). 

I believe that to go 'green' is technologically feasible, socially acceptable, economically profitable, environmentally sustainable, and, importantly, politically viable! However, the latter (political will) has always been missing in the realization of a greener world!

Taxation, Production, and Redistribution: Challenges for Philippine Development

Tax Commissioner Kim Henares is doing a very good professional job. No doubt that she knows her job and does what is expected of her office. Let's just hope that her fellow government officials — especially in the executive and the legislative (due to pork barrel!) — coordinate their plans with, and do justice for, the impressive tax collection initiatives of the Bureau of Internal Revenue (BIR). 

 

In taxation, policy coordination of all government agencies is a must. Otherwise, there will be a conflict between the overly enthusiastic tax collector and the disgruntled citizen taxpayers. In a word, the fundamental principle applies, the people must pleasantly feel and see how and where taxes are spent. It is the task of the government to make people appreciate and realize that taxation is a collective social development process in which the conduct of business — the producing, selling, and buying of goods and services — is a social activity that has socio-economic consequences and implicates the entire society. 

Next targets of the BIR are 'online sellers' and the 'informal sector'. Not an easy job at all! The 'informal sector' belongs to the so-called 'informal economy' precisely because they are out of government's taxation circuit. For sure, there will be conflicts especially in a situation where the government only enforces its right to tax people without fulfilling its responsibility to create conditions for 'full' employment, let alone 'formal' employment. I believe that the immediate and long-term strategy and goal for an effective taxation scheme — thus, an active and socially responsible citizenry in a vibrant economy — is to get people into formal employment. 

Accordingly, the Philippine state has to assert that it is the only authority that has the monopoly power to tax people, incomes, properties, and business activities within its territory and sovereignty. The government has to seriously address those known illegal taxation operations by organized criminal groups and syndicates such as the 'revolutionary taxes' and protection money which are reportedly collected by armed groups in the countryside or crooks in the cities.

Enforcement of taxation essentially requires political will. Yet, alongside political will is the establishment of a huge and reliable source or base of taxation — which only an industrialized or industrializing economy can provide. We need to have a national production system: [a] that produces goods, services, and enterprises to be taxed; [b] that employs workers to pay taxes; and [c] that institutionalizes a government that efficiently spends taxes for social welfare and infrastructure development. The idea is to build a production system which creates wealth for the nation in the form of higher incomes for the workers, bigger earnings for businesses, and larger tax bases for the government. The creation of this mode of production should be the first-order development agenda which shall serve as the foundation and lifeblood of the redistributive goals of taxation.

Maligayang Pasko 2012

‎"Lights of Christmas" at home, Metro Manila, Philippines....

I've always been asked by people, especially from here in Europe, how we celebrate Christmas in the Philippines. One even told me "I cannot imagine a warm Christmas with 30 degrees!" Well, we all have our traditions and cultural practices. 

A few weeks ago, CNN reported that "Christmas celebrations in the Philippines are the longest - and most lavish - in the world." I just realized that it has been eight (8) Christmases already since I haven't been home for the whole months of November and December, when one could really feel the pleasant and endearing difference the Christmas season brings to Filipinos. 

Meanwhile, we cannot afford to be 'lavish' at this time when we have unfortunate brethren struggling in Compostela Valley and Davao provinces. As the CNN feature aptly notes, "Above all, at Christmas time Filipinos are urged to think of others."

Maligayang Pasko sa inyong lahat! White Christmas kami rito, pero mas maaliwalas pa rin ang Pasko sa Pinas dahil sa mga magagandang parol at mas maligaya sa piling ng mga mahal sa buhay. :)

On Pacquiao's Loss and the Nation's Priorities

Priorities, Bayan ko. Manny Pacquiao earns around one billion pesos (some USD 25 million) despite the loss in this non-titled gambling match. I understand the feelings of a sports fan; and I also understand the feelings of the general population of a developing economy whose sources of pride seem so limited.

Meanwhile, our thoughts, empathy, and solidarity should go to our suffering brethren in Compostela Valley, Davao, and many parts of Mindanao. Manny has all the means necessary to overcome this life's setback. But our national priorities, resources, and energies must be given to the weakest, to those who need them the most.

Stop those senseless bickering over "religious" issues! Let's not become a nation who gets the energy from hatred and denials just to keep us going and cover up our insecurities. We have to create social values that side with and for the poor, the weak, the marginalized, the victims, the needy.

Yes, lest we forget, it's the advent season.

* * * *

Congrats Juan Manuel Marquez! Chase your dreams, face your fears, focus on your mission, and work hard for success. These are life's lessons from JMM.

As for Manny, he was winning in the scorecards. But then, just like in life, there are one big bang moments! Live and continue being a blessing to others, touching hearts and lives. 

Unfortunately, a cruel side of this world wants to shoot down stars. They want the stars to fall down, the famous to suffer. The country and fans should continue supporting Manny. Several champions get damaged and wounded permanently because they couldn't handle their fall and defeat.

It's just a beginning of Manny's next mission in life!

Economics Imperialism and Freakonomics in Philippine Social Development

Reference to InterAksyon's report 
"Weak institutions, elite control preventing Philippine takeoff - experts"

James Robinson, co-author with Daron Acemoglu of the book Why Nations Fail, has been invited to a forum in the Philippines attended by the country's leading economists on a topic which, I strongly believe, Filipino researchers and academics can better address adequately and convincingly.

Why the Philippine economy has not taken off 26 years after the fall of Marcos dictatorship and crony capitalism???

I argue that, "in UP Diliman organizational terms", it's because for so long our national development strategies and social goals have been greatly shaped, defined, and influenced by the dominance of the UP School of Economics (and partly by the College of Law?). 

I dream of another Philippine development vision with the synergy of the wisdom, tacit knowledge, and expertise coming from the UP Colleges of Social Sciences and Philosophy, Science, Engineering, Business Administration, Social Work and Community Development, Education, Fine Arts, Tourism, Asian Center, Small Scale Industries, Urban and Regional Planning, Technology Management, Labor and Industrial Relations, Human Kinetics, Home Economics, Mass Communication, Arts and Letters, Music, Statistics, Library and Information Science, Architecture, Public Administration and Governance, as well as the IRRI (International Rice Research Institute) and other colleges in UPLB!

But, of course, this is not a support to any notions of UP elitism! It's simply an analogy of my general critique of freakonomics (i.e., the economic theory of everything) as well as of the economics imperialism and legal imperialism over our social goals and national life.