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Hyperwage Theory Part 31
Classical economics and Keynesian economics which are inflation-centric economics do not have direct solutions to non-economic problems. This is the reason our opinion makers, policy makers, and the government executives are at a loss as to how to solve problems like the lack of doctors and nurses because they have all gone abroad. Even lawyers and Supreme Court personnel are now taking up nursing courses in the hope of finding their place in the sun in some Hyperwage country like the US or Europe.
They have no coherent policy for solving poverty, for solving the obscenely unequal distribution of wealth, for the housing problem, and for the petty crimes and corruption.
Because they are not thinking along the lines of Hyperwage mentality, these policy makers think that these problems are not correlated, and that is why there are hundreds of disconnected strategies for these hundred problems.
The Hyperwage Theory is a paradigm shift, and quite a revolutionary one at that. Imagine this. To compete with our Third World neighbors, instead of the usual strategy of lowering costs, I am proposing to increase our costs. Increase the minimum wage 1,000%.
Yes, Hyperwage is a stupid idea but apparently, not that stupid because I received invitations by economics professors in universities to conduct a lecture-forum. Obviously, because I’m a hermit I have refused some, and besides, I want to concentrate on finishing this book first before the lecture tour.
Actually, I’m not such a good speaker. I speak the way I write, meaning, I never get to finish my sentence or thought because I hyperjump to some digression or another. This is also the reason I will never win awards for writing, I concoct the most acrobatic syntax in this part of town.
But answer this: After you scan all the papers in the morning, which or whose article captivates your mind most of the time? Whatever or whoever is your answer, that is also my answer as to how to judge the effectiveness of communicating with the reader.
Personally, each time I strive so hard so that the answer to that question is the Street Strategist. I always fail though but at least I make the attempt. Funny, in the last few months, my friends have met people who want to meet me in person. Which is a surprising phenomenon for my friends because they themselves don’t care for me much and don’t even read my column.
Anyway, so much for digressions. I have accepted two speaking engagements, though, because their timing was right – I was in the neighborhood – and their students really sought me out that I had to repay their efforts with a yes.
Many economics professors, some in masteral level on advanced macroeconomics, are giving Hyperwage Theory as discussion material for their students.
Staff of congressmen have been seeking updates, and I have some CEOs who agree with Hyperwage Theory especially those companies who see the domestic helpers as a huge market for products and services including fashion accessories and life insurance policies.
But for now, let’s continue our survey of more ways by Hyperwage Theory elegantly handles non-economic problems.
The root of rebellion is injustice; the root of injustice is poverty. You solve poverty, you solve rebellion. No need for negotiation panels, no need for a strong army, no need for more armored trucks.
Consider the current strategy of our government, how many billions spent over the last 30 years on a destructive war against our own people who only original sin was poverty?
Think. If all those billions were released to the poorest of the poor in terms of minimum wage, and then subjected to the multiplier and accelerator effects, our economy will be in an upward spiral.
This is the reason, I view our current strategy with the rebels as useless. The rebels are not even asking for P20,000 per month, but Hyperwage is giving it to them.
Isn’t Hyperwage great?
A bank manager does not want to be an employee forever. He is a prime candidate as an entrepreneur but he doesn’t have capital because his salary is just slightly above that of the domestic helper in Singapore, and all our equipments are purchased from Singapore and Taiwan and Hong Kong or Europe, all hyperwage countries, how can he start this own business?
With Hyperwage, many middle managers will be able to save enough capital to pursue his own business dreams.
Currently, you have to wait till you are 65 years old to retire and use your pension funds to start your own business. The prime of your productivity has long since elapsed.
One furniture exporter told me his business will close down under Hyperwage. Of course, not. Right now, his export quality products are affordable only by the First World countries.
Given Hyperwage, the domestic market will be as powerful as the export market. Does Intel or Microsoft export abroad to survive? No, they became successful in their own domestic markets.
Why can’t it be the same for the furniture industry?
Shift your minds. Don’t look at the expense side, look at the revenue side. You can increase both your volumes and your prices under a Hyperwage regime.
And another non-economic benefit, our homes will have high quality furniture, unlike the current cheap ones we have.
Hyperwage will build and expand not destroy the cottage industries and any other industry for that matter.
All these benefits and above in just one single stroke. Give the worker their true value of labor based on world standards. Isn’t Hyperwage elegant?
It costs about P5,000 for a normal delivery in hyperwage Hong Kong but about P50,000 here in this country? Why? I don’t know.
The Hong Kong government has so much money from the taxes of the people who are paid at hyperwage salaries, and no corruption, such that they can subsidize medical care for the general public.
And did I tell you their public hospitals look like four-star hotels?
And for those who want private hospitals they can enroll for medical insurance, which they can afford because they have hyperwage salaries. Can you imagine our own country’s insurance industry boom under hyperwage?
Our medicines are inordinately expensive compared to our incomes because they are invented and copyrighted and priced based on the pharma firm’s hyperwage costs. We are paying for these hyperwage-priced medical products (NMR machines, X-rays) using our Third World wages, isn’t this bad economic strategy?
I have written some time ago the time when one Christmas I entered the newly opened Hong Kong central library. I actually wept. I did not cry. I wept. It’s like a five-star hotel, with wall to wall carpeting, elevators, escalators, and interior decoration. Internet plug points are free if you bring your laptop or you can use their computers. The books are hardbound glossy book paper. Only the novels are paperbacks.
Our people deserve such high quality of service as much as these Hongkongers do.
With an economically empowered public, we will demand world-class service after all we will be paying world-class taxes too. In Hong Kong, income tax is maxed at only 15% even if you earn $1 billion.
Actually, if you still don’t realize it, we are partially in Hyperwage status but only for the politicians with their travel expenses and huge allowances and kickbacks from the projects.
This is grossly unfair, and the only way I see to correct this situation is to slice some of those extremely egregious allowances and give it back to the people in terms of high wages.
Speaking of politics, why do well our votes for a kilo of rice, or even for P500? Are we that poor such that we are willing to sell our political souls to the highest bidder?
How are we addressing this issue?
I think only Hyperwage will solve this problem realistically. Yes, realistically. An economically empowered people are usually morally upright people.
I have to go now. More non-economic solutions next time.
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