July 22, 2013

Who Should be the Target of Growth?

In a country that is inhabited by rich and poor, many would ask; who should be the target of growth? Is it the top (by stimulating investment) or the bottom (by feeding the poor)? To name the few, here are some ways to stimulate growth: creating more jobs that will result to increase in savings and/or consumption, providing infrastructure that will translate to high productivity (and will in turn create jobs), providing programs that will help the poor, and so on.

The analysis is that, the growth of businesses would result to the growth of middle class; and, the growth of middle class would result to the growth of businesses. Eradication of poverty is the big question. It''s a question of time. How long will it take before the government, non-government, and private sector programs improved the lives of the poor? If the multiplier effect of poverty is greater than said programs then poverty eradication will be slow.

Reducing poverty is not instant, yet short term effects are notable. Satisfying the first hierarchy of needs (food, shelter, and clothing) is an effective way to curve social unrest; thus, highlighting the importance of allocating a portion of the budget to the needy.

Yes, there is part of our country that is growing and that is being developed; yet, one wrong decision and everything will be pulled out. A balanced growth focus (top and bottom approach) is recommended.

We have written this line in one of our articles but we will write this again as a reminder of united citizens. That is: No society can be truly happy with a portion of its people down to poverty (Adam Smith).

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