On unemployment, what is really the cause?

Many of those employed are barely competent at what they do.
The rest are unemployed because they are unemployable.

 

A lot of the capital which could be used to expand or start new businesses in the Philippines….is flowing out of the country. This has been going on for decades and a major reason for the decline in the country's finances….You can invest in a business in the Philippines, put up with the government BS, hire a half-competent workforce, try and squeeze a marginal profit…It only works when you can take advantage of the low salaries compared to your own country and can cope with the government BS that will try and hobble you - or invest in property in the US (bad example for couple years - but much better lately)…Australia, Europe, etc..or even manage international stock investments….and get 5-25% a year - adjusted for currency…tax-free in the Philippines - because they haven't the ability to track it…It's only the recent stability which has brought some foreign investment to the country and some jobs…but the song generally remains the same….Might change when the government gets off its backside and tightens up the regulations and enforcement….until then who in their right mind would put money into the Philippines when the returns are so much better elsewhere…? Wealthy Filipinos will be looking overseas and in-country and investing in what they perceive are their best interests….The Philippines needs to convince them to keep their money at home and draw others in….not impossible….

 

Would one not have to think that this and all the other systems were designed the way they are in order to sustain it's working for the elite, then one should ask, why/or what would the elite change the system into if they don't need to...
With out a class struggle like in the Ukraine nothing will change, but that is unlikely as long as the people are allowed to buy expensive goods on an installment bases that impoverishes and enslaves them ever more...

 

I include myself when I say that most people have no choice but to purchase on credit. Especially large purchases such as houses, cars and household goods. You have two choices either try to save up for the item or buy now pay later.
If you try to save up, the time it takes to have enough, the price has gone up, your savings have devalued. Or eg; Desposit on your home and then pay double by the time you finish the payment term. Most people dont have a choice. This is the way of life.

 

All other things being equal, if I could go overseas to earn 40000 pesos a month rather than stay here for 40000 pesos a year, I'd go overseas, too, regardless of job opportunities here.

 

The skills you learn in college are time management, planning and finishing something which takes X years to achieve, etc. You don't learn vocational skills unless you go to a vocational college (or is HRM a vocational program?) Even people who graduate from what you might consider relatively practical such as Computer Science in the U.S. don't come out of school immediately useful to an employer.

I haven't looked for quite some time, but I believe this depends on what you are doing. For example, if you are running the sort of business which would be bringing in all of your income from abroad, then you can disregard a lot of this. You can even get a tax holiday for X years if you open your business in a special economic zone.

I thought the reason the Peso has been taking a hit recently is that people are afraid that the Philippines has been gorging itself on cheap money flowing from abroad and now the U.S. Fed is about to put a stop to it. I heard that Manila has been going crazy with construction from that flood. Now the cheap money flows aren't there and borrowing is getting more expensive.

Right, what's the hurry? In the U.S. you get luggage for your 18th birthday. Good luck! Here, I know kids still chained to their houses even at 22.

Meanwhile, don't we have a bit of an unemployment problem in the U.S. and some places in Europe? We ain't seen nothing yet. Strap on your seat belt. New tech is about to take us on one hell of a ride.

Kids, you want to work in the future? Get your @ss out there and start hustling.

For some, it's going to be doing some serious skills acquisition. For certain things like working in tech, school won't help you unless it's a program with a highly intensive focus on skills training with close ties to employers. This doesn't (and probably never will) describe college. Don't rely on a school, pick these skills up on your own as much as possible. It drives me crazy when people ask me to teach them how to do what I do. The first lesson, use Google to find the first step (rinse and repeat.) That's what I did.

For others, it might be things that nobody would even think of. New types of jobs are popping up all the time, you can't go to school to learn something which has only really existed for a couple of years.

People just have to go back to their roots. What the hell is a job anyways? How long has that concept existed? At the end of the day, everyone needs to be selling something. If you have a job, it's because you sold your employer on the idea of you being the best person for the job. When you are able to make decisions in your workplace, it's because you sold everyone on that being the best course of action.

Build your brand and experiment. It's like the scientific method. You make a hypothesis on something that might work, you run experiments to test the hypothesis and you get feedback. Run as many experiments as you can. The tired cliche of Thomas Edison failing 1000 times is good to use as an illustration. The hustler needs to get to that 1000th failure as quickly as possible.

How do you teach that? I don't know. Quit giving your kids money, even for allowance, even for doing silly things around the house. Have them make their own. Quit planning a quarter of their lives for them by telling them they'll be okay if only the go through school and then college. Instill in them a sense of urgency, don't pressure them to do their homework, pressure them to pay some bills. Get them out into the world as soon as possible to tackle some real problems. Your kids need to get something done? Make them do it themselves!

Some of this already describes a lot of Filipino's actually. Some locals here can seemingly do a bit of everything. A lot of people in the U.S. think you have to be a certified plumber to even attempt to cut a pipe. Get the phone, because the only option for every problem is to call a pro.

Maybe the problem is that the Filipino's who really learn to hustle are the poor Filipino's who were never given a chance to pick up valuable skills. The well off Filipino's are given the tools and resources to pick up valuable skills, but don't know how to hustle. Kick your kids out of the cradle!

 

Good points "Dude", that are for sure some of the reasons for the poor "self reliance" and missing "confidence" in ones own capabilities that hampers the progress of the young workers...

 

I would argue that one can also (always) opt not to purchase or lease something if one can not afford it...
I never ever bought stuff on credit, I tried it ones and luckily got out of the contract without losing my skin and soul...

 

I think you would agree that most people could never afford to buy a house outright, unless of course they had inherited wealth or secured a very highly paid job. my parents never owned a brick and leased/rented a home all their lives. I was determined that one day I would own my home....It came with hard sweat and a few tears. At least ( I hope) my kids will benefit from that.Life ain't easy which ever way you look at it.

 

Listening to reasons, that some have to borrow, one that keeps coming up is , I need to pay my credit. This is where the spiral starts, If you have to start and borrow for a monthly installment, you really are getting into problems. if you can't afford this months installment, you sure as well, can't afford 2 installments next month So the spiral increases. Credit is useful, Handled well, it is a life saver to many

I heard from one (a family member) they had 6 credit agreements on the go, borrowing each month to pay. on top of that the new lender needed to be repaid. So is it any wonder, I heard the comment, "We have no rice" It is time that these lending companies took some responsibility on lending. Credit checks seem non existent.

Then it can be said, that these people, will fall into the hands of the Sharks, when things get to heavy. An ever increasing Circle, of course it is not unique the the RP. it is the reason that the world is in the state it is. People are living beyond their means.


I am no Financial Wizard but am trying very Hard, to keep my head above water.

an old chum (self employed) once told me I work 5 days and his theory was)

Monday, for the tax man.

Tuesday for the rent and rates.

Wednesday for the Bills ( electric gas etc)

Thursday for the Shopping ( Food Clothes and such)

Friday for the family and if there is any left, I might get a beer or two.

We hear so much about Budgets in the RP, I wonder sometimes if they actually understand this word "BUDGET" I am not particularly knocking them but when you try and help by explaining, we will get " AH! but it is the way, it has always been.


JP