Sunday, October 09, 2005

High productivity means prosperity

Prosperity depends on the productive power of Labor of which the most important is Skill, according to Adam Smith in 1776, The Wealth of Nations.
Productive power of Labor means we the people, is the source of prosperity not natural resources of the land. Our creativity, our skill, our judgment, out decision making, our critical thinking skills are the source of prosperity. Rich natural resources removes the incentive of people to rely on their own selves to prosper. Rich natural resources creates dependence on someone else to tap on that rich natural resource. Rich natural resources is an illusion of something that will always be their and there is no reason to hurry. Like children of rich parents, Rich natural resources kills the incentive to work, to creatively find work, to study things that work.
Adam Smith wrote that Skill in Labor produces excess products. These excess products must be exchange for someone else excess products in order for both to prosper.
The Philippines, as a result of quality education instilled by American teachers early in the century, have excess college educated professionals - nurses, doctors, accountants, engineers - which the natural Filipino economy could not sustain.
Creative minds to tap those natural resources are in short supply because of many government regulations, corruptive behavior of parents and superiors and low tolerance for risk.
However, those professionals were creative enough to know the market for their productive skills is in United States of America, who had educated our parents in English with American textbooks and standards. Now, these professinals have an obligation to give back to Filipinos left behind in the Philippines, not monetarily but relatively by example, by investing time and effort mentoring or starting a small enterprise.

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