Friday, October 26, 2018

PHILIPPINE TRADE WAR WITH THE WORLD

The US and China trade war is just a lesson for our leaders to learn the significance of trade for alleviating the conditions of our people out from poverty.



This trade war is everywhere in the international news, and it is believed that only a portion of our people is knowledgeable about this issue or many of us  may not have the understanding about it.



We have our own trade war ever since, and we have lost to it due to our unwillingness to engage in the development of our industries in the country, and the refusal of the government to industrialize the economy, and the distaste of our leaders to give attention to business, entrepreneurship, exports, commerce, and encouraging our population for self-employment and micro businesses to start with, and its lack of support  to assist the population to shift focus on businesses as a livelihood  alternative  affected by supply and demand of labor.



Tax incentives and less regulations to businesses specially to  small local capitals that will invite them to put up under lesser restrictions and regulations of the government are prime  incentives to make this country alive in commerce.



The government should be inclined on encouraging the people to start small businesses, and let this atmosphere  thrive everywhere for the sake of developing the economy thru local micro starters that will make people self sufficient and self-employment will reduce the incidence of unemployment in the country.



MORATORIUM



At this point, it is hard to speak about small business be encouraged in the country without speaking about the stiff laws and regulations at hand that is troubling small businessman. We admit that there are laws in the country that almost prevent small capitals to be free from mountains of fees and permits needed before anyone may start. 



Moratorium then could give relax to small capitals in the country to gain  head start, that by less regulations, more tax incentives, tax cuts, tax holidays, exemptions, and among other things can make small capitals flourish for a certain time until  stability of commerce and economy is attained by the country.



President Trump of the US is a businessman and he implemented cutting of regulations, tax cuts, that made new businesses int he US thrive, and it works that's why a growth in the US is now seen about 3 percent, adverse to th epolicies of Obama of raising taxes that had killed more plants and businesses out of the US and plummet growth. Trump made the reverse of more tax cuts and cutting regulations, and the outcome is positive,



For the meantime, we need moratoriums on the sector of business, trade and commerce in order to move this economy by letting in small local capitals survive int he country. This is needed because we have not yet reached levels of our economy that will give us the luxury of imposing regulations that people will be burdened and fail the economy.



TRADE WAR



We should understand that we are in trade war everywhere.  Our deficits to almost every nation we trade with is killing our economy, and these deficits are caused by our very low key manufacturing sector.



Our dollar reserves will deplete easily if our ability to trade or export with other countries is not substantial for surplus, a trade surplus is only the answer.



If we are of trade war mentality like President Trump, there is no way our economy shall suffer because our dynamics will be always be based on figures and we do not want our numbers fall behind our trade partners.



Japan for example has all the cars dump in the country, and we do not have any Filipino cars running in Japan, and that is trade war, a trade deficit  blatantly ruining our dollar reserves.



The kind of Trump mentality is what we need int he Philippines. A Trade War mentality not Drug war so to speak. Drugs is a problem created by impoverished economy, due poverty fuels drug trade.



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