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On Public Education and Destructive Innovation

August 12, 2011

This is my reply to a blog commenter who reacted to my blog entitled Further Comments on Public Education. This commenter states:

As for free market capitalism, I don’t think the system will work here. Look at our farmers, SME’s, namamatay silang lahat dahil dun…

noon, maraming sari-sari store, pumasok ang 711 at ministop at kumonti ang mga maliit na tindahan… noon, maraming maliit na sinehan, pumasok ang SM cinemas at unti unti silang nawala… noon, madaming magagandang tagalog movies at pinasok tayo ng hollywood, di ba halos nawala na rin sila…

free market capitalism breeds consumerism, and consumerism destroys our very concept of the self… we see everything as consumables, even people… kaya nga uso ang contractualization sa mga manggagawa ngayon…

Here’s my reply:

What do is the system that we should adopt for our country? Socialism and tribalism? Study economics and the proper concept of capitalism and you’d  find out the answer. It’s either capitalism or socialism. I have tackled all those issues here.

I have written numerous articles against public education so I don’t see any need to restate my arguments here.

As for your sari-sari store, the advent of convenience stores (e.g., 7-11 and Mini Stop) led to the creation of more jobs and more taxpayers that subsidize your public education. I bet that most of these sari-sari storeowners didn’t pay their own taxes because unlike the owners of 7/11 and Mini Stop, they’re no big deal to our tax bureaucrats. So you want sari-sari stores instead of malls that continue to create thousands and thousands of jobs and competition in the country?  

Did you ever go to a mall? If you did then you might have seen a score of people employed by mall owners and business establishment owners. But I think it’s not the jobs created and the taxes paid that subsidize your education which you noticed, but the greedy, selfish capitalists who happened to have the money to put up investment in the country.

What I’m talking about is called “destructive innovation.” Before the advent of computers and the Internet technology, we had typewriters and electric typewriters. But these old, defunct products had to go with the creation of computers and the Internet.

The advent of big malls and convenience stores led to the destruction of many sari-sari stores which you (perhaps) try to revive, but this created hundreds of thousands of jobs, which translated to more taxpayers that subsidize your public education, led to a higher level competition and more affordable prices of commodities, innovation, investment, and more progressive Philippines. If you want sari-sari stores, you can have them in North Korea where education is free and fully guaranteed by the dictatorial regime of Kim Jong Il. In North Korea there are no malls and convenience stores. Capitalists and businessmen won’t survive  in that slave pen and only government bureaucrats and military men get rich.

Your understanding of consumerism is very problematic. It exposes your very, very poor understanding of economics and capitalism. Consumerism is defined as a “a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods or services in ever greater amounts.” This is a liberal/leftist concept and I strongly disagree with it. Every individual living in a free society has the freedom to choose.

As for your contempt for Hollywood movies, you have the freedom to choose between a Filipino movie or a foreign film. But you don’t have the right to ask the government to restrict the entry of Hollywood movies in the Philippines. There’s something you missed here. The restriction of Hollywood movies in the country won’t lead to quality Filipino movies. Most Filipinos watch Hollywood movies because of their quality. Without competition Filipino filmmakers wouldn’t be compelled to produce quality movies. Let the incompetent Filipino filmmakers die if they failed to perform their jobs better.

Try to look at the Korean filmmakers. They didn’t improve the quality of their film products just because the Korean government restricted the entry of Hollywood movies into South Korea. Instead, Korean filmmakers improved their products in order to better compete with Hollywood films which they  successfully did. Now Korean films and TV series dominate Asia’s film market and continue to invade many countries in Europe and the Americas. That’s how innovative works and products are done in a free-market economy. If you want public education, let the “greedy” capitalists invest in the Philippines because they create jobs and innovations that would help you pay for your subsidized tuition. Your sari-sari stores and underground businesses can’t subsidize your expensive public education (since tuition at UP is above P100,000 by today’s standards.)

Thus, if we want more jobs and economic progress the best thing we can do is allow foreign investors to invest and do business in the country and repeal our protectionism policies and regulations.

Study economics and know how capitalism works!

 

5 Comments leave one →
  1. August 14, 2011 3:38

    Thanks for the usefulinfo

  2. November 4, 2011 3:38

    They have never been audited since their creation in 1913. They create money out of thin air and are the biggest fraud since the beginning of mankind. Do you support an audit and the abolishment of the Federal Reserve Banking cartel and have our own government print and coin our own money rather than some private banking monoply?

  3. November 5, 2011 3:38

    If a person did not submit their taxes for multiple years and and they were reported – is there a way to verify that the audit was done?

    Also, if the person moved since the initiation of the reporting to the IRS, does any action need to take place? The person has maintained a job in the public workforce over the years, including the present time.

    Thank you!

  4. homosapiens permalink
    November 6, 2011 3:38

    sari-sari stores didn’t decrease but has proliferated even more. that’s one economic effort of alleviating poverty and improving entrepreneurship in the country. and movie screens dwindled because the entire philippine movie industry continues to collapse due to foreign film domination, high taxation and rampant piracy.

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