I'll Vote for Teodoro A. Casino for Senator, IF His Supporters Can Run a SUCCESSFUL #SahodItaasPresyoIbaba Business That Pays PHP 1,200.00 Minimum Wage

If there's anything I want to say--only economically illiterate people would vote for Teodoro Casiño's promise. The chances are that (1) it's all for a vote, or (2) he doesn't understand what he's doing. In my case, I assume that Casiño is simply saying it, all for a vote instead of the second option. Chances are that he's only saying it, for a vote. Because nobody in the right mind would push a PHP 1,200 minimum wage, given the condition of the job market! I would like to write this article because what he's pushing is inflationary. It's because no matter how much you look at it, #SahodItaasPresyoIbaba is plain bad accounting (read here). How can you increase wages without increasing the prices of goods and services?

Business & Plans

 

I wrote about opening #SahodItaasPresyoIbaba stores nationwide. Until now, nobody has ever bothered to do the challenge. Why haven't they opened a single successful #SahodItaasPresyoIbaba store? As one would look into accounting, net profits are barely even 50% of what's left of gross profit. Why don't employees become part of the profit sharing, by default? It's simple. Employees have already been paid whether there was a profit or not. The employees already get a share of parted capital--which includes their salaries! Of course, employees are to be paid accordingly. That means if the employee wastes their payment--it's already their problem. The salary is a transfer of monetary capital from the entrepreneur into the hands of the employee. If I have a capital of PHP 1 Million--I would also need to part some of that money to the employees!

Last time, I heard about the PHP 750.00 minimum wage demand. Now let's see if supporters of Casiño are willing to run a #SahodItaasPresyoIbaba store that pays PHP 1,200.00 a day, per employee? Of course, they need to sell their goods at a lower price. They should still sell their rice at PHP 20.00 per kilo and eggs at PHP 5.00 a piece, all that was preposterously promised by President Ferdinand R. Marcos Jr., during his presidential campaign. That's why I promote the parliamentary system--because the Parliament knows better who should run the government! The people vote for the parties, the winning party selects the Prime Minister, and there are strict rules that not anyone can be a prime minister!

Back to the topic, I thought about what if a person sells rice at PHP 20.00 per kilo and eggs at PHP 5.00 a piece. Some people want to make fun of supply and demand, calling me demeaning names in the process. They can get me irritated all the want. However, no amount of name calling will ever change the laws of business and economics (read here). Casiño's supporters can call me stupid, moron, etc. for all they care. Nothing changes the fact that raising minimum wages without a huge demand for labor is inflationary (read why here)! Chances are these idiots may buy Apple products (or even use Adoble's ridiculous subscription model) when there are better and more affordable alternatives (read here). It would even be funnier if they open 24/7, operate with airconditioner 24/7, and you know how their lower-priced goods would not help cover the expenses needed. That's why there's a saying, "In a restaurant, you pay for both the food and the ambience." 

What makes it more foolish is Casiño is a long opponent of open FDI. Casiño dares to write this one about FDI:

Without definite limits on foreign ownership and with no preference for Filipino citizens and corporations, the Constitutional provisions on the national economy and patrimony would become a tabula rasa. It would now be up to the Federal Assembly to determine policies on foreign equity sharing and just about anything there is about the economy and our natural resources. This, of course, creates an entirely new window for corporate lobbying, putting small, underfunded Filipino citizens and corporations at a great disadvantage.

Worse, by totally removing the State’s role in developing an industrialized, self-reliant economy, in implementing agrarian reform, in promoting and protecting Filipino enterprises and producers, and in reserving our natural resources for Filipinos, Duterte’s Cha-Cha will leave small enterprises, workers and farmers having to fend for themselves from the onslaught of even more globalization.    

These amendments are the culmination of 3 decades of “economic reforms” toward a totally free market, neoliberal economy. Combined with the existing policies of economic liberalization, deregulation and privatization, the amendments remove the last impediments to the total domination, control and plunder of our economy and natural resources by foreign corporations and banks. 

I wonder what's Casiño's source of funding then? Where will Casiño get businesses to fill in the supply and demand gap? Hypocritically, this guy supports the International Criminal Court, which is suited in the Netherlands. The Netherlands has long benefited from FDIs and the parliamentary system--two things that Casiño still continues to oppose. Can this guy show that the Netherlands has 60-40 policy with FDI? Can Casiño show that the Netherlands progressed through self-industralized local economy and only opened to FDI after succeeding? I wonder what this guy's answer will be. In fact, that's why I consider him to be a nuisance candidate--him and the likes of Atty. Neri Colmenares, Rep. Raoul Abellar Manuel, Sarah Jane I. Elago, etc. 

Here's my haggle. If those who are rejoicing over Casiño's promise can make a successful #SahodItaasPresyoIbaba store (that pays PHP 1,200.00 minimum wage)--I would give Casiño my vote. Otherwise, I'm going to stick to what basic economics and basic accounting teach me. Sudden wage hikes are inflationary. That's why Casiño will not get my vote--unless his supporters can run a successful business given his minimum wage proposal--while they sell lower-priced goods at the same time!

Update: I made a mistake calling Casiño an attorney. I apologize for the mistake. Thanks.