![]()
High Prices,
Low Wages
in the time of Aquino III
Posted: May 22, 2011
■ Ideological Lessons on the Struggle Over Wages by UP Asst. Prof. Sarah Raymundo
■ LRT/MRT fare hikes: PPA all over agaim by UP Physics Prof. Dr. Giovanni Tapang
p
|
Photos courtesy of Gabriela Davao, Gabriela Negros, KMU FB Album, KODAO Productions, Mikola Cadiz, and Tudla Productions as indicated by the filenames |
|||||
|
Ideological Lessons on the
Struggle Over Wages Asst. Professor, UP Diliman Mayo 19, 2011
for Ka Bel, for all that he was
and for all that we can be because of him
The latest P22 increase in
workers’ Cost of Living Allowance in the National Capital Region (NCR) is
yet another attack on labor. After a two-year pause on wage hikes,
allegedly due to the global financial crisis, this increase can only be
read as a means of the Aquino regime to block a legislated P125-nationwide
wage hike sponsored by Anakpawis Partylist representatives in the lower
house. While this is not something new for labor advocates sitting on
congressional seats given the anti-labor policies of the Macapagal-Arroyo
administration, the ideological dimensions of this assault on labor by the
Aquino regime must be noted. It creeps into the cultural fabric at a
velocity that is stimulated by corporate media and it has by now become a
perverse national enjoyment of a wager for change. The Aquino clique’s perverse
enjoyment of its claims to progress, transparency and
accountability—processes in which we may start anew as a nation—works in
two ways. First, it warrants a passionate attachment to activity, an
obsession with commotion and a penchant for high drama. Think of all those
tarpaulins and billboards featuring the President and his supposedly
brooding yet accessible image. Notice the explosion of discourses on
rights and good governance among the well-heeled and their new-found
conviction for what they construe as arguments in support of morality,
righteousness, citizenship, and nationhood. Sense all that frenzy for “new
ideas” to be brought forth by creative, innovative and flexible minds from
academe to advertising firms, from government to organized religion, from
technocrats to marketing strategists. Second, it sharpens the
“contraction of socialist aspirations,”[i] a worldwide phenomenon brought
about by the ideological campaign that announces the end of history within
capitalism on account of the “failure” of different socialist experiments.
This renewed enjoyment of the promise of a changed nation is less an
opening up of new horizons and possibilities than a reinforcement of a
foreclosure that aims to contain the system by looking at its coordinates
in a “new” way but without seeking to traverse them. It brings to mind the
pervert in Lacanian psychonalaysis—the subject who seeks to challenge,
question and even transgress certain rules but only to reinstate them at
the end of the day. What people experience as pain and pleasure (jouissance)
in “renewing” things precisely to foreclose the possibility of changing a
system that breeds grim conditions is perverse enjoyment. What makes this
form of enjoyment even more perverse in the literal sense is the appetite
for repetition that comes with it. People want to do it again and again,
in heightened and more frenzied levels each time. The perverse enjoyment of
the idea of a changed nation is hinged on a particular conception of
government largely shaped by the economic doctrine of neoliberalism. Under
the neoliberal doctrine the following are mainly expected from government: To make itself
scarce in areas where social services are concerned. The
mentality that blames the poor for the dire conditions in which they
live; and that poverty is mainly due to the poor’s incapacities and flawed
life choices are precisely the desired ideological result of the State
roll out on social welfare. The mindset that defends government from even
the mildest of criticisms from its citizens as this is counter-productive,
destructive and simply uncalled for is the apt public disposition when a
government finds itself in a bind with multi-lateral institutions such as
the GATT-WTO, IMF-WB and other agreements with other nations that heighten
geopolitical disparities (VFA, JPEPA, MLSA). Clearly, how people feel
about poverty in this country is pretty much aided by a transmission
function that blurs state policies yet highlights their adverse
consequences to the most vulnerable sectors in society. This situation
leads to a very low public opinion of the poor for they can only be seen
and understood in the light of their hardships and rarely in the context
of political and economic policies that bear material effects on their
life choices and everyday dispositions. To act as a main
conduit in facilitating public and private partnerships. This
position stems from the idea that government can only function properly
in dynamic tandem with business since the former tends to be corrupt and
congested by bureaucratic procedures while the latter wields and yields
profits. This kind of market-worship submits people’s life chances to the
(un)predictability of business. Corporations and their “rational” ways are
supposed to rule the day. This happens without having to ask why the most
powerful State bailed out Wall Street from utter destruction instead of
spending for social welfare at a time when it was most needed by the
people. How can people continue to believe in something that does not work
is a question that proves the fact that neoliberalism is not just a set of
economic policies based on the economic theory of free trade. It doubles
up as a social discipline that makes up an ideological formation based on
imaginary projections of free trade. We are told that government is in
need of corporate tie-ups to ensure the common good. Yet in the case of
deregulation—an indispensable tenet of neoliberalism—we can see clearly
how the principle of automatic price adjustments enable oil cartels like
the Big Three to hoard massive profits thereby strengthening nothing but
the already existent and havoc-wreaking industrial oil cartel. This shows
that big corporations actually need governments to recode the logic of
profit accumulation as legitimate state policies. Public and private
partnerships, popularized as PPP’s by the Aquino regime, are partnerships
forged within the arena of the raging class struggle. PPPs are overt
displays of government’s preferential option for big business. The PPP of
Noynoy Aquino reveals that this president is no fence-sitter. It also
exposes a mode of enjoining the people to a social practice that is based
on enjoying neoliberalism through the enjoyment of changing the nation at
the cost of social solidarity. Destruction of
Social Solidarity Through State Roll Out As an ideological formation,
neoliberalism generates social fragmentation resulting from economic and
ideological logics. The economic force of neoliberalism has spawned and
reinforced the tenet of privatization whose consequences are not limited
to state abandonment of social services. It takes in as well those
situations in which private entities such as big business can impose
wanton violations of civil rights and principles of national sovereignty. In Third World economic
zones fueled by foreign investments, in occupations that provide services
and even in government offices, contradictions between permanent and
contractual employees or workers arise on account of labor
contractualization. This policy serves management’s interest beyond
cutting back on workers benefits. In its truest sense, labor
contractualization is the suspension of labor power’s capacity to meet
human needs. Warning his readers against the tendency to fetishize wages,
Michael Denning argues that the same bent “may well be the source of
capitalist ideologies of freedom and equality ” that has the effect of
granting to the employment contract the status of the “founding
moment.”[ii] The strength of Denning’s critique of the wage fetish reaches
its height when he argues that “capitalism does not begin with the offer
of work, but with the imperative to earn a living.”[iii] In its truest, sense and in
its most useful function for capitalism, labor contractualization is a
social discipline that promotes a fragmented, competitive and antagonistic
appreciation of worker-to-worker relations because it threatens a
significant and indispensable human capacity: to survive the requirements
for daily living. The division of labor into contractual and permanent
corrupts and distorts human capacity, turning it to docility. The (re)production
of docile bodies palls human capacity for cooperation and reduces labor to
a mere instrument of capital. Profit-making’s bid for the harmony between
labor and capital is hardly a wager for order. It is a mechanism to
conceal the foundational contradictions of the subsumption of labor under
capital that translates into the hierarchic relation between employer and
employee. Kept under the wraps, the contradictions that result in this
hierarchical relation breeds a mode of compliance that disempowers
workers, which in turn creates relations of rivalry and distrust among
them. Labor contractualization—legitimized
by economic policies such as privatization and deregulation—does not only
render labor disposable from the perspective of state and market. Worse,
it preciselymakes labor disposable from the point of view of workers
themselves. This is clearly an ideological assault on labor preconditioned
by the economic imperatives of neoliberalism. Neoliberal economic
imperatives (not exclusive to labor contractualization) are the same
factors that worsen the poverty situation in the country. The Clamor for
Higher Wages The workers’ call for an
immediate relief from skyrocketing price hikes through the P125 across
the board wage hike rests on worsening living conditions. While the
struggle is being waged in the economic sphere, it is a significant part
of the struggle of and for labor. This struggle entails workers’ demand
for their wages to satisfy the cost of daily living of their families.
Undoubtedly, this makes the whole struggle for higher wages an
indispensable struggle for human lives. That workers are tasked to
challenge capitalist class domination in their struggle for human lives
makes the fight necessarily political. The role of the State in the
struggle for higher wages by no means diffuses the mechanisms of control
over labor. It actually aids the transfer of what is otherwise a confined
economic struggle between workers and capitalists within a particular
point of production to a locus of political struggle in which the Leninist
thesis of the state being an instrument for the exploitation of the
oppressed is confirmed. State power, civil society and the relative
autonomy that exists between them; and the force of the capitalist class
do not divide the functions of class interest with the State as a mere
arbiter. “[T]he state, which represents the coercive ‘moment’ of
capitalist class domination, embodied in the most highly specialized
exclusive, and centralized monopoly of social force, is ultimately the
decisive point of concentration for all power in society.”[iv] The Aquino
government’s latest intervention involving wage increase plainly
demonstrates how the state collapses with the interest of big business. But what needs to be
urgently understood is not so much of what constitutes President Noynoy
Aquino’s class interest. For sadly, his is too predictable for
questioning. What begs understanding is the current regime’s capability to
sustain its standing despite its very own conflicting claims to change.
When President Aquino announced that the Filipino people are his boss, the
majority was his addressee. It indicated a shift from the anti-poor,
despotic and shady governance under former President Gloria Macapagal-Arroyo.
The fact that the current regime has not implemented policies that will
effect significant change in the lives of the Filipino people goes to show
that we still have to linger in expectation. This regime’s deployment of
perverse enjoyment of “changed” conditions is contingent on people’s
expectations, which in turn is highly dependent on time. The people’s precipitous
identification--a kind of relating to or fully identifying in great haste
with a cause —with President Aquino’s discourse of change is subject to a
work of time. This means that as subjects of this particular ideological
mobilization, we are being held-up by an idea that has aroused our
deepest, most important expectation of ourselves and for our nation: Pagbabago,
and it operates within the limits of time. Aren’t all expectations subject
to a deadline? The Aquino regime has managed to repackage our aspirations
for change into a political propaganda that fuels its political machine.
While it is too early to identify the ideological dimensions of this
political propaganda, taking the risk of doing so is offered as an
exercise in conjunctural grasping. Grasping Perverse
Enjoyment At this point, what looks
like a full blown propaganda by the current regime’s political machine is
its new gospel of hope founded on the neoliberal tenet of privatization.
President Aquino’s fervour for PPPs preaches that we must begin to be
faithful to the idea that only the rich can save this country. The
partnership is not about holding the hand of one’s equal. It is rather
about profit-seeking private entities “sharing with” or “providing for”
government the much needed funding for various projects. The idea that
change is contingent on the decisiveness and unity of the basic masses is
old and trite for this government. Thus, the insult that is the P22
increase in COLA of NCR workers instead of the P125 across the board wage
hike is but a logical act for the Aquino regime whose idea of change is
limited to an agitation for change that prohibits the working class of our
country to push for substantial changes in their conditions because for
this government, this class is by no means the bearer of change. This
social discrimination is most reproachable especially since that its
implementation is accomplished in ways that are almost invisible. An adequate wage hike is a
possibility that is always foreclosed by this regime’s perverse enjoyment
of a promise of a changed nation. For what is being renewed every day
amidst all that frenzy for change is the rule that there shouldn’t be any
substantial change in the quality of life of the working class. Such is
the conduct of a government that has consciously chosen to be under the
grip of neoliberalism. What is further foreclosed is not only the idea of
an alternative to the system but, even more strongly, our capacity to
understand how the current system does not and cannot serve human needs.
This ideological assault is reinforced by a culture that renders labor
invisible within fields of vision, making it ever so difficult for the
working class to partake in the struggle over the “legitimate principle of
legitimation.”[v] For example, it is standard
procedure for mass media to feature the lives of the rich and famous as it
is customary practice to push aside stories for and about the struggles of
the working class. And whenever they do, the rare story almost always
highlights helplessness, incapacity and the ways by which poor people are
saved by their rich benefactors. The point is not a naive demand for
corporate media to turn its back to its interest and suddenly start to
feature sharpened class antagonisms in the country by showing various
situations of empowerment and disenfranchisement among the working class.
The point is to draw attention to the ideological role of corporate media
in the promotion of a mode of enjoyment marked by bourgeois aspirations,
a practice that plays a part in the contraction of socialist aspirations.
This role is patently consistent with the strategy of reproduction of the
U.S. -Aquino regime that consists in an ideological campaign that commands
a perverse enjoyment of “changing the nation” but with the unmistakable
goal of prohibiting qualitatively changed conditions. My generation and the
one that came directly before it are fortunate to have come across a man
who had lived through poverty, war, exploitation and tyranny. He lived
through these frightful and appalling conditions by going against them,
not on his own but with his very own people—the working class of the
world. Today, on the third anniversary of his death, I recall a time when
I first wrote an essay with a clear yet a weird intention of opening a
possibility for Ka Bel to read it. He was, at the time, in jail for
struggling against the U.S-Arroyo dictatorship. And so I wrote in Filipino
an essay on Post-politics and Human Rights. Two of my cherished mentors
gently chided me for some of my vague, inaccurate and difficult concept
translations and constructions. I did not take offense as I was secretly
pleased with my secret wish. To this day, I have no idea whether Ka Bel
ever read that essay. And it only matters now as a funny memory of how I
had wanted to relate to a great person like him at some point. A week ago,
I had the fortune of finding a book I read for a book report in high
school--War and Peace by Leo Tolstoy. I immediately looked for my favorite
lines delivered by the character of Pierre. It was not difficult to find
as I somehow remember writing it down from the book’s last few pages to my
notebook many years ago. I found the quotation on page 1,409: “I only wanted to say
that all ideas that have great consequences are always simple. My whole
idea is that if vicious men are united and constitute a power, then honest
men must do the same. You see, it’s so simple.” Ka Bel in all his
simplicity and the lucidity of his ever so sharp ideas on the class
struggle and the revolution, and how he lived these could have said the
same lines in relation to the struggle for a proletarian state. I am
humbled by the thought that those who were with him, those who have not
given up the fight miss him every single day in the struggle for genuine
change. [i] see Ellen Meiksins Wood.
1995. Democracy Against Capitalism: Renewing Historical Materialism. Great
Britain: Cambridge University Press. [ii] Michael Denning.
Wageless Life. New Left Review 66 November-December 2010.http://www.newleftreview.org/?view=2871 [iii] ibid [iv] Ellen Meiksins Wood.
1995. Democracy Against Capitalism: Renewing Historical Materialism. Great
Britain: Cambridge University Press. p.47. [v] Pierre Bourdieu. 1996.
The State Nobility: Elite Schools in the Field of Power. California:
Stanford University Press. p.265.
Photo from this website http://www.indybay.org/newsitems/2008/05/22/18500751.php
|
![]() |
||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
|
Media Release |
"Workers want a legislated wage hike because it is only through
legislation that we have the chance of getting a substantial wage hike,
like the P125 across-the-board wage hike that HB 375 seeks to legislate.
Any wage hike that is smaller than P125, especially if it is very meager
compared with the latter, won't give workers a genuine relief," Soluta
said.
|
||||
| Protesting the very low P22 COLA and urging the legislators to approve the P125 wage hike ▼ |
NEWS RELEASE
15 Anonas St., Unit D-24 Cellar Mansions
News Release:
Stagnant wages since 1995 warrant urgent
approval of legislated wage hike bill - NGO
As Congress resumes its session today, EILER
reiterates its support for workers' call for a legislated wage increase.
The stagnation of the real value of wages since 1995 under current
wage-fixing mechanisms highlight the need for Congress to immediately
approve the long overdue legislated wage hike bill, a labor NGO pointed
out today as Congress resumes its session.
Ecumenical Institute for Labor Education and
Research (EILER) said the latest index of compensation as of 2009 was
112.9, which is exactly the same as during 1995 based on the date from the
Bureau of Labor and Employment Statistics (BLES). The index of compensation is a measure of the real value of average wages and social security benefits received by wage and salary workers in a year. Data is released by BLES under the Yearbook of Labor
Statistics.
“The fact that real value of workers’ compensation stagnated for 15 years despite the wage hikes from collective bargaining agreements and regional wage boards should prompt the Congress to intervene and approve a legislated wage hike,” said EILER executive director Anna Leah Escresa.
EILER strongly supports House Bill 375 (HB
375) filed by Anakpawis Party-list that calls for a P125-across-the-board
nationwide wage increase for private sector workers.
The group also noted that worker’s
compensation in 2009 was much lower compared to its value in 1989, the
year when the regional wage boards were created under the RA 6727 or the
Wage Rationalization Act.
“If labor groups really want significant
increase that will cut across regions, then they should direct their
demands to Congress. That would make sure that they won’t suffer the
dismal offering of wage boards,” she added.
Reference: Anna Leah Escresa, Executive
Director, EILER, 09088642151
15 Anonas St., Unit D-24 Cellar Mansions -----------------------------------------------------------------------------------------------------
anakpawis national anakpawis2003@yahoo.com
|
||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
![]() |
![]() |
|||
|
May 17, 2011 - KMU's Protest Action Against E-COLA |
“The DOLE is trying to show that workers’ wages are a-OK until the recent wave of price hikes, when the P22 COLA it has approved barely makes up for the P18.50 erosion of the value of workers’ wages since Noynoy became president,” Soluta said.
|
||||
|
NEWS RELEASE
15 Anonas St., Unit D-24 Cellar Mansions
|
![]() |
||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
![]() |
![]() |
|||
| Youth against fare hikes, protest at MRT/LRT ▼ |
Press Statement -----------------------------------------------------------------------------------------------
Media Release
---------------------------------------------------------------------------------------
Media Release
|
||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
|||||
![]() |
![]() |
![]() |
|||
![]() |
![]() |
||||
|
Youth protest against MRT/LRT
fare hike |
Ani Crisostomo,
ipinagpapatuloy lamang ni Aquino ang ganitong sistema sa pamamagitan ng
Private-Public Program o PPP ng kanyang administrasyon. |
||||
![]() |
![]() |
![]() |
|||
| = | |||||
| Protesting the MRT/LRT fare hikes |
LRT/MRT fare hikes: PPA all over again
BY GIOVANNI TAPANG, Ph.D. http://www.manilatimes.net/opinion/lrtmrt-fare-hikes-ppa-all-over-again/
LAST February 4 and 5, commuters, student and people’s organizations participated in a public consultation with the Light Rail Transit Administration (LRTA) and the Department of Transportation and Communications (DOTC). The public consultation was held by the LRTA with regard to the fare hike that it approved for the light rail transit (LRT) and the metro rail transit (MRT) systems.
The LRTA-DOTC study team that recommended the increase claim (without citing how they arrived at the figure) that the full cost fare for LRT/MRT ranges from P35.77 to P60.75, which is far from the current fare of P 12.30 to P 14.20. From this the LRTA-DOTC team projected that government “subsidies” for the LRT/MRT that reached P13.85 billion last year will balloon to P17.06 billion this year if there will be no fare adjustment. This increase of “subsidy” is why the LRTA-DOTC thinks we should increase the LRT/MRT fares.
The oppositors under the Bagong Alyansang Makabayan (Bayan) pointed out several reasons why the LRT/MRT fare hike is not necessary. One of the points they raised was how much does it actually cost to run and maintain the MRT/LRT system.
The Bayan position paper gives an estimated P9.11 cost for operation and maintenance for the MRT line. This means that an MRT customer is already paying P 0.89 to P 5.89 more than what is necessary to maintain the MRT. This calculation is based on the farebox ratios or the proportion of the fare revenues to the total operational costs of the trains. The farebox ratios for the LRT1 and LRT 2 has averaged 1.39 and 1.01 respectively. This means that the revenues cover already the total operating and maintenance cost of the train systems.
If the train revenues are already enough to operate the trains, why is there a need for such a large “subsidy” in the first place? The Bayan position paper is clear on pointing out the culprit. First, there is the government guaranteed payments to the Japanese, Czech and local banks that financed the project. On top of these guaranteed debt payments, the government has also guaranteed that the MRT consortium will get 15-percent return on investment (ROI) per annum. In 2009, the previous administration had to buy out 76 percent of the MRT for a $800 million lump-sum payment in order to terminate this ROI guarantee.
Haven’t we learned the lesson from the privatization of the power industry? We should recall that the current high electricity rates, one of the highest in Asia, is due to the pass-on rates to consumers. These are partly due to the same type of government guarantees to foreign investors.
The infamous PPA or the purchased power agreements comes to mind. We pay for onerous transactions that are in the end detrimental to consumers. In the case of the LRT/MRT, we pay not just for the ride but also for the bad deals made by the government. Bayan made it clear in their position paper that the issue of debt is important because of two things—(1) the debt burden has been made onerous because of questionable and disadvantageous build-operate and transfer (BOT) contracts such as in the MRT and (2) it is the obligation of government to service these debts through the people’s taxes and not through user fees. They further said that it is government’s duty to lessen, not increase, this burden of the people.
Who will be hit by this fare hike? Nearly 70 percent of commuters during weekdays earn below P 10,000 a month and about half are ordinary employees and workers. This social segment benefits from a cheap and accessible mode of transportation. Raising the rates takes this option away from them.
The socio-economic role of an urban railway apparently did not escape the notice of the LRTA-DOTC study as they noted that: “Most urban railway systems in the world are not financially viable, but are implemented for their socio-economic benefits. Our Manila Light Rail Transit (LRT) systems promote the use of high-occupancy vehicles, thereby reducing traffic congestion on the corridors served, local air pollution and greenhouse gases emissions. Besides the substantial savings in travel time cost of LRT riders, the LRT systems reduce infrastructure investment in Metro Manila road expansion.” With this in mind and the fact that the train revenues already cover the costs of operation, we do not see why the LRTA should proceed with this fare increase.
What government should do is to review these projects that were funded by onerous debts and bloated by corruption and cancel them if necessary. There are other non-rail revenues that it can creatively explore which can augment the earnings of the train lines instead of increasing the burden of ordinary Filipinos.
Short URL: http://www.manilatimes.net/?p=1654
|
||||||
![]() |
|||||||
![]() |
|||||||
![]() |
|||||||
![]() |
|||||||
![]() |
![]() |
![]() |
|||||
|
Riles Network slam LTFRB-DOTC-MALACANANG hocus-pocus;
“Fare hike imposition, just a ROLE
PLAYING GAME for Noynoy” |
![]() |
||||||
![]() |
|||||||
![]() |
![]() |
![]() |
|||||
![]() |
![]() |
![]() |
|||||
![]() |
Media Release |
||||||
![]() |
![]() |
||||||
![]() |
![]() |
![]() |
|||||
|
NEWS RELEASE
The latest round of hikes in pump prices,
which is the 14th this year, should prompt the House of Representatives to
heed the labor’s clamor fo a legislated across-the-board wage increase, a
labor NGO said today as Congress will resume session in less than a week.
|
![]() |
||||||
![]() |
|||||||
![]() |
![]() |
![]() |
|||||
|
GABRIELA TO PRESS ON FOR P125 WAGE HIKE
----------------------------------------------------------------
PRESS RELEASE
|
Gabriela Davao protest vs price hikes ▼ | ||||||
|
Corazon Espinoza, Vice Chairperson of GABRIELA-Davao and Chairperson of Samahan ng Maralitang Kababaihang Nagkakaisa |
|||||||
|
January 29, 2011
|
|||||||
|
|
|||||||
|
Franchie Buhayan, Deputy Secretary General, Bagong Alyansang Makabayan - Southern Mindanao Region |
|||||||
|
|
|||||||
| Gabriela Negros piket in front of DTI against High Prices ▼ | |||||||
|
|
|||||||
![]() |
|||||||
![]() |
|||||||
![]() |
![]() |
![]() |
|||||
|
ON THE
STANDARD ISSUES OF THE DAY working class
share and assume power and effectively check on the integrity and
performance of public servants.
Our national industrialists now have to pay more
for imported capital goods, fuel, raw materials and spare parts
replacements. With the resulting increase of the cost of production, some
firms have been so hard hit that they have had to fold up while others
have had to raise their prices in order to survive. In the course of the
weakening of the peso, Filipino firms have been easily taken over by
foreign firms. Otherwise, they are simply crushed by the foreign
monopolies. With the increase of the prices of the commodities that they buy and the resulting depression of their real wages, the workers have to demand an adjustment of their money wages. The hiking of the wage level in turn increases the costs of production and, the vicious cycle of capitalism, the capitalist must pass on the cost increment to the mass of consumers, leaving the workers with the same or even much lower real wages. The problem of high prices assails the vast majority of our people who have a low fluctuating income or a low fixed income.
|
Inflation in the Philippines has resulted from the consistent breakdown of
local production in both national industry and agriculture. This in
reality does not conform with the Keynesian notion that higher prices
reflect higher production. This is the irony of a neocolony that must
perforce be subject to developments in the imperialist metropolis. Only the public sector backed up and determined by
the organized workers, peasants, students and other patriotic segments of
our population can lead in the achievement of national industrialization
and land reform. We cannot depend on foreign investors for these; it is
futile to do so as our experience in the last six decades tells us - four
decades under direct imperialist rule and two decades under indirect
imperialist rule. A small amount of capital is invested in quick profit
areas by U.S. firms, oftentimes from our own credit facilities, and in a
period of even as short as one year, super-profits squeezed from Filipino
labor and from the mass of consumers are already flowing out of the
country. U.S. investments always carry with them the curse of super-profit
remittances which have plagued and restricted the growth of the Philippine
economy. Consider the huge amount of capital that the oil firms, Caltex
and Esso, are taking out of the country; consider the danger of placing |
||||||
![]() |
![]() |
||||||
| ** | |||||||