"IT'S THE SOCIAL ECONOMIC REFORMS, PROFESSOR!!!" (A Macro Position Paper)

“It’s the

social economic reforms,

professor!!!”

(A Macro Position Paper)

A Rebuttal to GMA . . . A lesson of the past for P-NOY

Leon Estrella Peralta with
Ka Leleng (Chairman-KADAMAY)

GMA’s well publicized Position Paper entitled “IT’S THE ECONOMY, STUDENT!” (Pls. see related news article below )boasted her regime’s economic gains at the same time lambasted P-Noy’s poor economic performance for 2011. While it is actually true that GMA had achieved economic gains during her past administration, this truth is inutile in her administration’s fight against poverty. The GMA administration’s yearly positive economic growth rates within the span of 10 long years conspicuously did not cure the economic standing of the poor and had placed a large number of the lower middle class to imminent poverty or near poverty. Generally, considering the actual facts of the past administration, we could conclude that Good Economic Standing

of the State does not necessarily mean economic recovery for the masses; a true picture of GMA’s past presidency.  GMA’s failure to install genuine social economic reforms specifically lowering down the prices of petroleum products, electricity, water, and all basic commodities in a “socially economic curable level” (Please see below its definition and description(s) by the herein author) was the big reason for GMA’s failure of her administration’s fight against poverty. GMA apparently aggravated the economic condition of the poor when she signed the E-VAT LAW which mandated the imposition of Value Added Tax (VAT) for petroleum products, water, and electricity. The E-VAT LAW, adding insult to injury, had caused a fatal blow to the long desired economic recovery of the poor and likewise, this consequently had shaken and weakened the economic stability of the lower middle class hence, had created a new class in our society, referred to by the herein author as the “MASSES IN GENERAL” (Please see below author’s definition and description(s).

          While history was unfolding in P-Noy’s initial successful fight against the alleged “Mother of all SCAMS,” twin bleak news came into the limelight.  The Pulse Asia survey specifically concluding the worsening economic condition of the people and the news about the declined growth rate of the national economy in 2011 have dampened P-Noy’s initial victory against graft and corruption.

            History of P-Noy's 1 1/2 years of presidency apparently taught him and his economic team that their failure to spend what is on the 2011 budget mainly for infrastructure had a fatal intertwined setbacks in the general economic standing of the country and the economic standing of the poor and likewise the lower middle class. Seemingly, it’s the history of their said past action that P-Noy’s administration decided to spend 438.8 Billion pesos this 2012 for sustained, rapid, economic growth.  This comprises 24.2 percent of the 1.1816 Trillion pesos National Budget of 2012.  Specifically, the 2012 economic budget will fund 182.2 Billion peso infrastructure program according to a DBM report.  (Please see below related news article).

            Relative to the aforesaid, to spend BIG is generally a GMA economic formula and definitely will lead to the economic recovery of the state but not necessarily transcend to the economic recovery of the “MASSES IN GENERAL”.  The aforementioned reality is the true picture of GMA’s 10 year presidency, a healthy economic condition of the state but a sorry economic condition for the “MASSES IN GENERAL”. The nation and the rich are getting richer, the “MASSES IN GENERAL” getting poorer.

   Of course, P-Noy’s copy cat economic program as proven by the economic performance of the past administration would surely lead to more employment and money to spend for the “MASSES IN GENERAL” but again, if genuine social economic reforms would not be installed vigorously with intensified Political Will by P-Noy, the current crippling prices of petroleum products, electricity, water, and all basic commodities, if not lowered to a “socially economic curable level”, would greatly neutralized the aforesaid. As a result, this would be construed by the “THE MASSES IN GENERAL” as simply cosmetics or simply anesthetics for the same would not see and feel the truth of the sorry state of their economic standing.

 DEEPLY, THE ECONOMIC UPLIFTMENT OF THE "MASSES IN GENERAL” MUST HAVE THESE ELEMENTS: Enough money to spend for all their basic necessities, enough money to spend for their desired education and enough savings for future capitalization for them to be able to engage in small businesses without resorting to “loan shark” financing. IDEALLY, THESE ELEMENTS WOULD TRIGGER THE UPLIFTMENT OF THE SOCIAL ECONOMIC STANDING OF THE “MASSES IN GENERAL” WHICH WOULD INITIALLY NARROW THE GAP BETWEEN THE RICH AND THE POOR AND ULTIMATELY CREATE A “DRAGON MIDDLE CLASS” . . .

        History has proven the GMA presidency’s economic programs had continuously widened the gap between the RICH AND THE POOR and had shaken & weakened the economic stability of the lower middle class which had placed a large number of the said class in imminent poverty or near poverty by her administration’s failure to install the aforesaid specific genuine social economic reforms for 10 long years. It is a kind of social reform that should had brought down the prices of petroleum products, electricity, water and all basic commodities in a “socially economic curable level” which should have had ultimately created a “DRAGON MIDDLE CLASS.”

            Will history repeat itself in P-NOY’S presidency?

"IT’S THE MISTAKE

OF THE PROFESSOR,

     STUDENTS!!!"

We all have to STUDY the past in order to know the present . . .

By   KA LEON ESTRELLA PERALTA

       Founding Chairman
        Social Reformist /Political and Human Rights Advocate

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Definition and description by the author: 

“MASSES IN GENERAL” – A mixture of the poor and a large number of the lower middle class who are now in the brink of poverty or near poverty.   

“SOCIAL ECONOMIC CURABLE LEVEL” – downgraded prices of petroleum and petroleum products, electricity, water and all basic commodities that would bring about the upliftment of the Social Economic standing of the “masses in general” which, if implemented, would initially narrow the gap between the rich and the poor and ultimately create a DRAGON MIDDLE CLASS. Specifically, this will bring about to the “MASSES IN GENERAL”: enough money to spend for all their basic necessities, enough money for their desired education, and enough savings for future capitalization to be able to engage in small business without resorting to “Loan Shark” financing. 

“DRAGON MIDDLE CLASS” – An ideal middle class that has a very strong economic foundation and to its inclusion, a large part or percentage of the productive population of the country

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Related news article: 

The Daily TRIBUNE

January 13, 2012