Were Econ Cha-Cha Opponents Forced to Buy Luxury Products When They Have the FREEDOM to Buy More Affordable Products?

Do econ cha-cha opponents have no choice because FDIs "unfairly" own the means of production (read here)? There's always the tendency to say that they participate in capitalism because they have "no choice" but to participate in it to survive. The screenshot above is of Rosario Guzman of the IBON Foundation. They say that the business owners "unfairly" own the means of production (read here). The photo above makes me laugh because why in the world are they using a MacPro? I ask, "If you hate capitalism, why use Apple?" They have their usual rhetoric that it's because the workers should own the means of production as if workers were the ones who bought the equipment. It's as if the workers become the most liable for bad business decisions. One wrong check mark and the company may go south. Another question to fire is, "Did society force you to buy Apple products which you know for well, is rather expensive?"

This may make one ask, "Did you think the expensive was always the best?" If so, they may think they can spread their message better with more expensive stuff. Investopedia also sheds light on why people are prone to buying luxury goods.

Are Higher-Priced Goods Really of Higher Quality?

One possible explanation for this is the human tendency to overemphasize the positive elements of a product and ignore its disadvantages. For example, in the case of Apple Inc. (AAPL), consumers wait overnight for new releases of iPhones, iPads, and Mac computers. This despite the fact that Apple products are not technologically unique or superior.

In fact, Samsung makes phones with better features (compared to most models of the iPhone), and Microsoft Corporation (MSFT) and Xiaomi make phones that typically have a cheaper price point. Nevertheless, Apple experiences a high degree of brand loyalty and seems to break sales records year after year.

Because some people perceive non-luxury goods as inferior simply by virtue of them being non-luxury (and not on the basis of their characteristics or qualities), they also come to the irrational conclusion that higher priced goods are of better quality. Contrary to the evidence, they may believe that you get what you pay for, regardless of whether the goods are actually better than their more affordable counterparts.

If they did better research on finances, they could buy laptops from Samsung and Xiaomi at a lower price. In the free market, there's the choice of whether one wants to buy an Apple product or if they want to buy the more affordable alternative. For example, I might buy the "Communist" Xiaomi phone over an iPhone for a lower price and better battery life. I might buy an HP laptop instead. They should've done some research on gadgets that cause. In finances, the principle is never to buy a bag worth USD 500.00 with nothing inside it. Instead, buy a USD 75.00 bag with PHP USD 425.00 on it. They had their free choice and it had consequences to follow.

Their purchasing habits may prove their financial illiteracy. If one thinks that more expensive is always better--I can expect them not to know basic economics. That's why discussing economics with an overspender can be a futile exercise (read here). An overspender only knows how to spend--not how to budget. Even more ironic is overspending on imported luxury goods while supporting policies discouraging FDI (read here). The person can buy a Gucci bag, an iPhone, and all branded goods but goes to rally against FDI. When asked, "You hate FDI but why buy imported luxury stuff?" Again, if they say they're just forced to participate, were they forced to buy the iPhone, the MacPro, or the Gucci bag when they had a choice for more affordable goods--local or imported?

They don't see the real beauty of the free market. In a free market, even in a Communist country like Vietnam, there's the choice between luxury goods and non-luxury goods. If I were in Vietnam, I could choose whether or not I'd like to eat gold-leaf steak or I could choose to eat more affordable steaks. I could choose to eat more affordable chocolates or high-class chocolates. Vietnam's current president To Lam ate a golden steak after laying flowers on Karl Marx's grave. To Lam could've chosen to eat at the Sichuan Restaurant instead of Salt Bae's Nusr-Et Steakhouse. Nobody forced To Lam to eat at Nur-Et Steakhouse. To Lam ate that golden steak of his own free will.

I'm laughing at people who buy luxury products while saying they're just forced to participate in capitalism. It's not like capitalism doesn't give people a choice between different products under fair government regulations. I can buy a luxury or a non-luxury product because I have that choice. I can criticize capitalism under the Customer Protection Act or my right to review businesses. I can complain if a business establishment fails to meet the required safety standards. That's why we still need government to regulate all forms of economic activity. Even Communist countries like China and Vietnam can now enjoy the free market's choices to a certain extent.

When the Education Cares TOO MUCH About Grades, Schools Produce Idiots Instead of Intellectuals

During the pandemic, I was left in limbo thinking about my poor performance under K+10. It was something to think about that a classmate of mine who was both a summa cum laude and an honor student, ended up posting on his wall, "Students cheat because the education system cares more about grades instead of learning." The class salutatorian of our batch even commented about the good old days. I always had that feeling of insecurity and envy towards people better than me. But as Warren Edward Buffet would say, "Don't hate successful people. Learn from them instead." One of them is currently a teacher and the other is in Canada. I thought about my insecurities especially when I used to believe I was descended from a fine scholar and my family was a family of scholars. I remembered the time I was taking MBA and got conned. I was asked, "Is that what MBA taught you?" I got touchy and ended up admitting, eventually, that I was only taking MBA for the presti...

My Thoughts on the NOT So Surprising Downfall of "Axie Infinity"

llustration: Daniel Guerrero Fernandez for Bloomberg Businessweek I remembered some time ago when I wrote about Axie Infinity . One article I wrote about why I never bothered to enter the Axie Infinity arena was the poor security . I compared it to a cockfighting game--a game where so few win and so many lose. A previous article I wrote was all about why play-to-earn games are too good to be true . What's not too surprising is the collapse of Axie Infinity . It's pretty much too good to be true. A casual gamer can testify that they buy online passes not to earn but to play . It's like buying a Playstation Plus card to play online for an entire year. You buy games out of the money you earn. You don't earn money out of gaming. What truly never surprised me was how Axie Infinity crashed. It promised riches but onoy resulted to disaster. I even wrote that there could be an ironic moment somebody says that AXA is a scam while playing Axie Infinity thinking that it's an...

Getting Nuts About Standard Chinese, By Learning About the Chinese Names of Nuts

Hanbridge Mandarin In pursuing the need to teach Mandarin Chinese, it's important to deviate from the old-fashioned Chinese language education (read here ). Instead, we need to get people interested in basic vocabulary. This would be a good exercise to learn from basic sentence making and conversations. Here's an example of what's called bon toi back in my day. Let's think of learning Chinese through nuts. Question: 你想要巴西坚果、核桃、杏仁还是腰果? (Nǐ xiǎng yào bāxī jiānguǒ, hétáo, xìngrén háishì yāoguǒ) Translation: Do you want brazil nuts, walnuts, almonds, or cashews? Answer: 我想要杏仁，非常感谢. (Wǒ xiǎng yào xìngrén, fēicháng gǎnxiè.) Translation: I want to have almonds, please, thank you very much. However, there's a mistake in the chart because the coconut isn't a nut. Instead, it's a coconut fruit of the coconut tree, of the coconut palm family. The song was written by Filipino musician Ryan Cayabyab. Now, it's time to enjoy learning Chinese through learning about n...

Piracy is Almost Impossible to Defeat Thanks to the Filipino First Policy

Disney Let's face it piracy is hard to combat, right? For Filipinos, it's time to be honest that people have been engaged in piracy in some form. It may be pirated video games, CDs, VCDs, DVDs, etc. There are laws passed against piracy. However, one must ask why piracy is so hard to combat. Piracy bypasses through legalities. It's a common practice to have a pirated version of this and that application, because of the price . Installing MS Office and Windows 11 can be costly. It can cost PHP 7,000.00 for Windows 11 Home and PHP 5,400.00 for MS Office. Back in college, people would do anything to get the MS Office and Windows 11 because they needed it for their projects . It doesn't help that some well-to-do boomer are stingy instead of thrifty. It doesn't help either that some people just can't afford to buy the original software--given their income bracket . It's easy to raise the Filipino First Policy by saying, "Tangkilikin ang sariling atin!" ...

The STUPIDITY of Insisting that Equity Restrictions in the 1987 Constitution of the Philippines Exist for "National Security"

As the call for economic charter change goes on, I feel the need to educate some people with common sense . I'm reading comments on Facebook that 60-40 (or any similar ownership restrictions) is for the "security of the Philippines" or that certain sectors can't be allowed 100% ownership on the part of the MNC. Once again, do I need to remind people for the nth time that 100% FDI ownership is all about share ownership ? Sadly, many Filipinos misunderstand what 100% FDI means (read here ). What 100% FDI ownership means is that MNCs don't need to look for a Filipino partner, only to be burdened with having to give up 60% (or more) of the net profits after taxes and they only keep 40% (or less). That's why I called such an arrangement as overpriced rent (read here ). Some of these people I ran into on Facebook (of all places) are too beholden to Atty. Hilario G. Davide Jr. It was last 2018 when Davide Jr. also said that the Philippines may become a "colony ...

Refuting the BOGUS Claim That Wage Increase Alone, Not FDI, is the Key to Long-Term National Development

This is yet another stupid claim from Kabataan (Youth) Partylist. I wonder if the organization is linked to that joke of a Facebook page called the Philippine Anti-Fascist League (PH Antifa). You have had other similar organizations such as Anakbayan (Children of the Nation), Bayan Muna (Nation First), IBON Foundation, Kilusang Mayo Uno (May 1 Movement), and the League of Filipino Students that insist on the unsustainable demand for higher salaries, lowering the prices of commodities, and handouts for everyone. The idea itself is already not feasible (read here ) yet they keep demanding it. One must wonder are they a group of economic idiots or do they have ulterior motives? Do these groups understand what FDI really means? I noticed that people coming from like-minded groups (such as Teodoro Casiño of Bayan Muna) have their own bizarre ideas. I could still remember his Rappler article which he also wrote about FDI. If the likes of Casiño are linked with the likes of Kabata...

How I Believe the Public Service Act of 2022 Will Benefit the Philippine Business and Economic Environment

One of the greatest news for the Philippines is the Public Service Act of 2022. The following can be read from the Philippine News Agency regarding President Rodrigo R. Duterte's signing of the new law into action: President Rodrigo Roa Duterte on Monday signed into law a measure amending the Public Service Act (PSA), allowing up to 100 percent foreign ownership of public services in the country. Republic Act (RA) No. 11659 or "An Act Amending Commonwealth Act No. 146 otherwise known as the Public Service Act” as amended was signed by Duterte in a ceremony at the Rizal Hall, Malacañan Palace in the presence of lawmakers and other officials. Under the amended PSA, the telecommunications, railways, expressways, airports, and shipping industries will be considered public services, allowing up to 100 percent foreign ownership in these sectors. Duterte also led the ceremonial presentation of newly enacted laws namely RA 11647 which amends the Foreign Investments Act; RA 11650, whic...

"Filipino First Policy" Has NO PLACE in the Rising Asian 21st Century

I guess nobody saw the Asian 21st Century coming, right? China was once a poor nation but look at it now. Vietnam was once a poor nation but look at it now. Singapore was once a poor nation but look at it now. The late great Lee Kuan Yew wrote his book From Third World to First . I'm afraid some people have been using it to go against the presidency of Ferdinand R. Marcos Jr. while ignoring what else Lee Kuan Yew had to say. Lee Kuan Yew described the Filipino press to be rambunctious on pages 304-305 which I agree. I'm afraid that the Filipino press may have had a hand in getting rid of any economic or political reforms that could help the Philippines. Yet, one policy has been holding back the Philippines for decades and yes, it's the Filipino First Policy . Reviewing the Filipino First Policy and why it has no place in the rising Asian 21st century I remembered how the values education subject taught Carlos P. Garcia's stupid Filipino First Policy as a Filipino value...

Singapore Proves That FDIs Aren't There to "Take Jobs Away" from Locals

I'm amazed at the same lies that are still said by similar "thought leaders" such as the members of groups such as Alliance of Concerned Teachers, Anakbayan, Bayan Muna, IBON Foundation, Kabataan Partylist, and League of Filipino Students making their lies about foreign direct investments (FDIs). One of the lies that they made is that foreign investors are there to invade, exploit, and steal away jobs from the locals. We have the Filipino First Policy by Carlos P. Garcia which sadly caused the Philippines to fail . The aim was to make sure that majority of those who own the businesses are Filipinos. However, a big challenging question is if there are enough Filipino businessmen to fill in the supply and demand. I'm amazed some people quote from portions of the late Lee Kuan Yew's book From Third World to First . Yes, it's often quoted but only if they want to make the current incumbent president, Ferdinand R. Marcos Sr., look bad. I'm still one of the peop...

The Philippines 60-40 Equity Scheme Doesn't Prohibit FDIs But It's Still VERY DISCOURAGING for International Business

First and foremost, I'd like to tell people that I don't believe that the Marcos Years were the "golden years". I still agree with economist Cielo Magno that land ownership isn't a factor, since some countries without equity restrictions, don't allow foreigners to buy land. In contrast, inflation and the like were rampant during that time. However, we need to realize that any gains after EDSA 1986 weren't realized. As I was looking at Facebook, a page called Punch the Lies by Atty. Mike Navallo stated this: FACT: The 1987 Constitution does not prohibit entry of global investors into PH. What it regulates is foreign investment in areas deemed critical such as public utilities; exploration, devt and use of natural resources; and certain investments as determined by Congress. (Art XII) Public utilities (water, electricity, petroleum distribution, seaports, PUVs) are considered vital to socio-economic devt that's why they're subject to foreign owner...

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