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Is IBON Foundation Making Their Analysis Based on Revenues Equals Profits and Blaming FDI for Joblessness?

I was looking at Facebook this morning. It isn't too surprising that the IBON Foundation posted this with hashtags like #BuildFilipino, #StriveForIndependenceAndSovereignty, and #ASEAN2026PH along with it. I looked at this recent graphic made by IBON and I want to ask myself, "Is IBON Foundation treating revenues as profits?" It's because IBON has been calling for #SahodItaasPresyoIbaba, which literally means, "Increase salaries, lower the costs of goods." It's as if the salary doesn't affect the overall cost of production. 

Mistaking revenues as profits?!

It's probable that IBON may be presenting revenues as profits. If that's so, then how can an economic think tank make such a common-sense error? It's really laughable some people on Facebook insult me repeatedly on Facebook, while praising IBON. However, I'd like to present this common sense analysis.

Business & Plans

If we look at this sample accounting plan alone, we realize that IBON may be thinking, "PHP 980 billion in investments in revenues. That must be the profit." I can't really prove my claim, though; that's just my assumption. However, the way IBON may be using its latest "infographic"—it's safe to assume that they think that the PHP 980 billion in investments and the 97.1% revenues don't translate into anything for Filipinos. However, what may be ignored is that revenues don't equal profits. The profits are barely even half of the revenues, especially when we have sales minus all related expenses (which serve as deductions), and then there is still pre-income tax, which leads to net income after taxes. In short, any money that makes FDI rich is what's left after income taxes.

Blaming FDI for more joblessness?

This is another assumption that I have with IBON. It's already a recurring pattern that IBON tends to say that foreign investment allegedly didn't increase or that joblessness still persists. Honestly, I want to assume that IBON actually blames FDI for joblessness, still believing the solution is in "Pinoy Pride Economics". I remember writing about IBON's stance on Pax Silica where I further questioned IBON's logic as a whole, not just its current head, Jose Enrique "Sonny" Africa. 

The claim that the Philippines is "that open" to FDI makes me wonder, "What does IBON count as FDI?" That's why I even ask, "How is IBON representing FDI in their articles?" Please tell me how "open" the Philippines is to FDI with the recent 60-40 constraint, and the negative list is still rather long. In fact, several industries that need deregulation are still strictly constrained by the flaw in Article XII, Section 2, making it even harder for any president to invite FDI and free certain sectors. 

IBON is probably having that case of thinking, "Pinoy Pride will save the Philippines." The harsh reality is that Pinoy Pride economics has a high socio-economic cost. In reality, the Philippines was never meant to be "Uniquely Philippines." and Filipinos were never meant to be "the most unique people in the world". Such thinking has only stagnated the Philippines. 

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