NSCB: Poverty Worsens bet. 2003 & 2006

**tidus1203** · March 6th, 2008 12:45 PM

Let me remind everyone that our GDP is composed of 60% consumer consumption. Now consumer consumption is never going to be wealth creation in any sense to those who consume. It increases the wealth of the seller (which are the big corporations owned by the rich) thats why the middle and poor class are transferring their wealth to the rich as they buy new cellphones, new TV's, new clothes, new etc.... What we need is capital creation. People should save (instead of spending like a drunken sailor without a care for tomorrow) so they have the capital to invest and reap from the GDP increase.

**uls** · March 6th, 2008 01:23 PM

masarap kasi ang feeling pag may bagong gamit e...

hehe

**pup2** · March 7th, 2008 07:55 PM

Originally Posted by Honda97

actually, assuming all things are the same, GDP growth should mean a reduction in poverty. it's either the income distribution became more lopsided or the is something wrong with the statistics. both are highly probable.

I agree. On top of that, pagka real (inflation-adjusted), per capita (per person) growth din naman wala pa din eh. What the admin should 'crow' about instead is that our DECLINE has LESSENED -- baka dun mag agree pa ako.

**CVT** · March 8th, 2008 01:33 PM

Originally Posted by tidus1203

Let me remind everyone that our GDP is composed of 60% consumer consumption. Now consumer consumption is never going to be wealth creation in any sense to those who consume. It increases the wealth of the seller (which are the big corporations owned by the rich) thats why the middle and poor class are transferring their wealth to the rich as they buy new cellphones, new TV's, new clothes, new etc.... What we need is capital creation. People should save (instead of spending like a drunken sailor without a care for tomorrow) so they have the capital to invest and reap from the GDP increase.

Agree here bro.,- consumer spending is one of the main factors for keeping our economy alive (and afloat)... Kaya nga one of the schools of economics endorses more consumer spending (Reaganomics should be one of these variants) so that the market remains liquid even in tight economic situations....

But then again, there should be a balance between how much you spend and how much you save.... The underlying guidance is that you have to live within your means....

As for "saving your money and later investing it to reap from the GDP increase", I am sure a lot of our countrymen, including myself, will not have the capacity to invest because we can only save so much....

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