Balance Sheet

Two weeks ago I had a real life lesson about balance sheet. It is tempting to change the 'ee' of the sheet to 'i', because when the deficit beacons, it can not be helped.

The present day is crunch time for me, with two college students, one in elementary, and with my other half pursuing her Ph.D., high gas prices, and irrationally high food (rice) prices, inflation,...; so I have to be on my toes. I have to revisit accounting 101,(and with no back ground in business or economics, because curriculum experts failed to include that in chemistry course), and have to be contented with the simple income statement.

The balance sheet is only between income and expenses. When I was introduced to the world of business, a chinese friend advised me to watch my expenses. That I should not spend more than I earn. He also shared to me the chinese secret-that everyone knew- to save at least 10%, if I cannot afford the suggested 20%, of my income. Obviously, I only remembered my friend today when time is difficult. Had I followed his advice, John Gokongwei Sr. should be proud of me and this economic malaise will not affect me.

Anyway, it is never too late. So I listed all my expenses (like most people I don't have a journal of expenditure so I have to estimate some from memory), posted it against my income. The result is as expected. My expenses is more than my income. Luckily for me, it is almost even, maybe because I based my data not from a year on year or month on month record, but from the recent expenses.

This is also my mistake as a micro entrepreneur, and perhaps most other micro entrepreneur. One major reason why only a handful would make the jump from micro to small to big.

I now have my record.

Taxation

The government system was invented to help those who cannot help themselves, but in many instances it ends up helping those who needs less help. An ironic existence, one reason why NGO's are very visible these days. However, for the longest time, NGO's also failed to make a dent on poverty, mal-education and in almost every front they vowed to annihilate.

Poor people still outgrow the rich. The gap is growing even wider. Less than ten percent of a nations economy is being controlled by the elite. This is the scenario before and it is still the scenario today. A scenario that brings me to doubt the validity for the existence of this government.

If it fails to uplift the lives of the very people it supposed to serve, why on earth should it be allowed to tax the poor. Why should we allow the government to levy taxes on almost every thing on earth just to support its very existence that amounts to nothing? Of course we should not allow that to happen, only if we have any alternative. An inutile government is always better than no government at all.

Free Trade and Me

The debate is still on. Is Free Trade doing us any good? Should the government protect their own, give it ample support. Allow its muscle to grow bigger and stronger, before it faces the big boys who were always in the look out for the blue ocean-where there is no tariff and restrictions to protect the small fishes. The sharks are always lurking, ready to swallow the over matched competitors.


This is the classic tension. Generally, economist (in the western hemisphere) agrees that free trade is better. The onslaught of the Chinese products, and Indian services, though, have them on the defensive. Free trade is once again being questioned,....because they are losing the competition.

Free trade is often viewed as the fight of the small versus the big. The small countries who dreams of cornering its own share of the global pie, and the big who says their economy of scale provides cheaper and better quality products. This competition between the old dominant player and new kid in the block is actually a major price determinant. It indicates that the global pie is not growing, or the dominant economic model is flawed.

Another consideration is the tension between the consumer and the producer. As an end consumer, I would always favor free trade, because I have the choice where I will find the cheaper product or the dearer but reliable alternative. (tbc)

(ihavetogo...)

The Pains of Being Filipino

Like every Filipino I, too, am faced with challenges, economic and socio-psychological. And like every Filipino here and abroad, I also asked my self; when can we be proud of being Filipino. I also have relatives abroad, from the closest of kin, distant cousins, or just relatives in name. And in the next couple of years, there is a big possibility that one of my children will also fell prey to the lure of the foreign land. I can't blame them, for many times I am almost tempted to follow the diaspora. Though I have stayed abroad, when my wife was on a university scholarship , and I like what I have seen there, the opportunities and the amenities that is so lacking here, long time ago I already have made my choice, I am definitely staying.

Staying here, and do little good things one at a time, so that soon we will have a country that we will be proud of. Here, every way may be a challenge; but far away from home, everyday is a struggle. Here, we can have all the opportunity all the time to do something we can be proud of; but from a distance we can only hoped of that someday to come when we will be of help to our fellowmen.

That might be a good story line, in reality though, when the stomach is empty, when the heart is dumb, when the mind is confused, when the spirit is desperate,.......when all the bills have attached notice 'for disconnection,' when next year means another child going to college, when a medical check-up is deliberately forgotten so that additional illness will not be discovered; to seek for greener pasture is no longer an option, it becomes a must.

Poor Philippines, when will the exodus last? When can we be proud of being a Filipino?

(next will be my wish list)

A start

Like rain drops,
gathered to form the lake;

ink drops,
I'd like to gather,
and see where it would lead.