Skip to main content

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. 

Popular posts from this blog

Wanting Wealth WITHOUT Financial Discipline

Many people want to be rich, but not so many people want the discipline on how to be rich. Isn't that the plain hard truth ? As I do this sideline blog , I contemplated whether I should write another post after writing several posts years back, or when I wrote about Venezuela as a cautionary tale . Back on topic, I thought about how financial discipline is something often overlooked. It's easy to talk about Christmas since that's probably the most wonderful time of the year to be spendthrift , only to find out that one's broke by the New Year . The cycle of reckless financial habits tends to restart in January, even when January becomes that time of reckoning between debtors and creditors! January 2026 will end, February 2026 comes, and then the cycle of financial recklessness continues. It's the same cycle over and over! Last Christmas, I remember how DTI Secretary Christina Roque spoke about the PHP 500.00 noche buena, for a family of four . I called it tactless b...

Venezuela as a Cautionary Tale on #SahodItaasPresyoIbaba, Nationalistic Pride, Welfare State Economics

The Sunday Guardian Years ago, I wrote about Venezuela's pride and protectionism , under a more "formal" style of writing compared to my latest posts. I decided to use an even "less formal" and "less academic" tone since I'm not writing a term paper. Instead, it's like how a professor and a student discuss the thesis using first person over third person, using contractions, etc., while the thesis doesn't use such tones. Back on track, I thought about the arrest of Venezuelan President Maduro can spark debate. Was it a violation of sovereignty? I'm no expert on international law. However, Venezuelans can be seen celebrating Maduro's arrest. Right now, I'm using Gemini AI and Google search to help me find some sources for this blog. It's because I don't want my blog to become another gossip central, but a place to discuss facts with my own personal opinions (making sure they don't  derail the facts).  I used Venezuela ...

Communist Vietnam's Great Leap Forward in Agricultural Production

I remember reading through Third World to First by the late Lee Kuan Yew. It's very easy to use the book to badmouth the Marcoses but not to learn from the rest of it. The book also talks about Vietnam and LKY's encounter with the late Nguyen Duy Cong aka Do Muoi. It's often said that Singapore only opened because of its lack of natural resources. On the contrary, Do Muoi decided to learn from Singapore how to turn the Communist Party of Vietnam into a powerhouse. Do Muoi, though a communist , was impressed by Singapore during his October 1993 state visit. Vietnam, unlike Singapore, is a country rich in natural resources. The third-world mentality said that MNCs are there to rape the resources .  A very huge misconception especially if you know Singapore's history Some Filipinos on social media even say that FDIs will destroy agriculture and nature. This is a meme by the Philippine Anti-Fascist League on Facebook. They say that FDIs equals environmental degradation. Yet...

Filipino Manufacturing's Golden Age ENDED Because of the Filipino First Policy

Here's a picture from the Dose of Disbelief Page on Facebook. Here's something that it wrote: Filipinos once trusted locally made products more than imports. Before World War II, the label "Made in the Philippines" carried prestige, not stigma, reflecting a strong sense of national confidence in domestic production. Local products such as shoes, cigars, textiles, furniture, and food were often preferred over imports. This preference was rooted in the belief that local goods were better adapted to local conditions, tastes, and were often of comparable, if not superior, quality. This period showcases a strong historical era of consumer nationalism and thriving local industries. We need to look into the context of Filipino history  If we look at the Philippine history timeline , we must account for 1935-1940, during which the Philippines was under the Commonwealth government. Independence was declared from Spain on June 12, 1898. However, there was a transition period w...

The Saying "The Customer is Always Right" isn't Right

I remember being chastised and said, "The customer is always right!" It became hypocritical because the same person who told me that later chastised me for yelling at the service provider in public . I'd admit that I screamed at the phone or even in person because things didn't go my way. My favorite excuse would be, "You said the customer is always right, right?" Going by the logic that the customer is always right, I'm right in doing the wrong that I did to service providers. It also reminds me of some rude manager lady (who I believe got fired sometime later, not going to mention her name or the company) who's heard to be highly unreasonable . She would scream in public louder than the late Miriam Defensor-Santiago.  I'd like to give an illustration of the fault of that phrase. The news of a raging customer who threw hot soup at the manager can create debate . Was she in the right when she threw the hot soup at the manager instead of talking t...