Saturday, December 03, 2005

Capitalism for Filipinos

Filipinos are right for Capitalism. Filipinos have several capital. We need to revive and resuscitate dead capital.
Dead capital are properties not earning any rent, money in mattresses not earning interest or not circulating as a business capital and highly educated brains with no independence and self confidence to take risk starting a business. Capital is not only money or financial assets. The most important capital is your head, your brain, your thoughts, ideas, creativity in putting thoughts and ideas together for a business venture and 'lakas loob'. Starting a business is taking risk.
Filipinos are literate enough to educate themselves to minimize risk. Filipinos are Christian enough to curb the evil of capitalism - greed and prayerful enough to ask for God's mercy.
A capitalist in Adam Smith's mold look after his self interest. He make a profit from his capital, then spend the capital and a portion of the profit to improve his business. Filipinos understand the number one mantra of Adam Smith - Division of Labor. Finer definition of division of labor is specialization or repetitive work. Machines invented to relieve the boredom or burden of repetitive work. Filipinos must learn and apply the finer definition of division of labor.

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