A12 Friday, June 18, 2021 • Editor: Angel R. Calso
Opinion BusinessMirror
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editorial
How the rich manipulate the poor
‘M
oney isn’t everything, but happiness is.” “If money isn’t everything, work at McDonald’s.” One statement was made by a member of one of the most successful “boy bands” in history. The other was from a man who started as a doorto-door meat and seafood salesman. The wealthier elite economic and social class has always set the tone and aspirations for all those underneath them. There is nothing wrong with having the desire and ambition to be successfully rich. Part of that includes trying to emulate if not imitate the rich. The individuals on the list of the “Richest in the World” would probably all give the good advice to, for example, “work hard; work smart.” But it is easier to “look” like the rich rather than adopt the behavior that helped make the people wealthy. “Fake it until you make it.” Notice that the lower groups try to mimic the upper group, never the other way around. Fashion does not go down to the street level to get ideas to sell to the rich. However, Amancio Ortega built a multi-billiondollar retail clothing empire (and personal net worth) by doing the opposite. Within weeks of the top high fashion couturiers showing their new designs, Ortega had factories in Asia cranking out copies of those designs made for sale to the masses. Displays of wealth though has become easier and more common for the “less-rich”. Back in the 1980s, “rich” businesspeople from London were packing their suitcases with fake Rolex watches from Thailand to give as gifts to their less-wealthy associates and employees. One even bragged that his fakes were better than someone else’s since he paid a few hundred baht more to have an extra layer of gold paint applied. The fake handbags, shoes, and clothes gave the “poor” people a chance to look and feel rich without going through all the hard work of actually getting rich. As that trend continued, the richer people have had to change the way they manipulate the poorer ones. From physical wealth, the trend has been to social status behavior that has nothing to do with money. In other words, look at the way the rich are telling the poor how to behave. Research indicates that respect and admiration from our peers are even more important than money for our sense of well-being. If everyone in the neighborhood has a fake Rolex and imitation Hermes Birkin Bag, how can you stand out and act rich? Writing in the New York Post, Rob Henderson said: “The upper classes have found a clever solution to this problem: luxury beliefs. These are ideas and opinions that confer status on the rich at very little cost, while taking a toll on the lower class. One example of luxury belief is that all family structures are equal. This is not true. Evidence is clear that families with two married parents are the most beneficial for young children. And yet, affluent, educated people raised by two married parents are more likely than others to believe monogamy is outdated, marriage is a sham or that all families are the same. This ‘luxury belief’ helps contribute to the erosion of the family.” Research shows that before the 1970s the vast majority of Americans got married, and most children lived in stable, two-parent families. But since then, there has been a substantial marriage divide by class. First, poor Americans became markedly less likely to get married, now at 26 percent. Then, starting in the 1980s, working-class Americans became less likely to get married (39 percent). For the upper economic class, the figure is still 56 percent. In the past, upper class Americans used to display their social status with luxury goods. Today, they do it with luxury beliefs. Since 2005
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Unspent Bayanihan 2 funds Sonny M. Angara
Better Days
W
hen we passed the Bayanihan to Recover as One Act (Bayanihan 2) back in August of 2020, every one of us in Congress understood that we had to act swiftly in order to address the urgent needs of all the sectors affected by the Covid-19 pandemic. A total of P165.5 billion was allocated for Bayanihan 2, a significant portion of which went to the health sector for the purchase of Covid-19 vaccines, support for our frontline health workers and for building up our health system as a whole. Particular emphasis was also given to assisting the micro, small and medium enterprises (MSMEs) whose operations were drastically affected by the imposition of strict community quarantines in the National Capital Region and other parts of the country. A huge sum was provided to our government financial institutions—Land Bank of the Philippines, Development Bank of the Philippines, Small Business Corporation and the Philippine Guarantee Corporation as capital infusion so that they could provide low-interest loans to the affected entrepreneurs.
Apart from helping the MSMEs to resume their operations, the provision of loans by the GFIs is also intended to support the continued payment of salaries of their employees so that no jobs will be lost. The transport sector was another target beneficiary of aid under Bayanihan 2. For several months, public utility vehicles were not allowed to ply their routes, forcing the hardworking drivers of jeepneys and tricycles to resort to asking for alms on the streets just to feed their families. Education also received its share of the Bayanihan 2 funds to assist the Department of Education in the implementation of its alternative modes of teaching since face-toface learning is still not allowed. For higher education, funds were provided for the development of smart campuses in the state universities
and colleges. We also included funding for the provision of subsidies for qualified students. Bayanihan 2 was signed into law in September last year and expired on December 19. This apparently was too short a period for the different implementing agencies to utilize the funds allocated to them and so upon the request of the Executive Branch, Congress extended the availability of the appropriations under Bayanihan 2 until June 30, 2021. We now have less than half a month left before the Bayanihan 2 extension expires and what we are seeing in terms of fund utilization is not encouraging. Based on data provided by the Department of Budget and Management (DBM) as of May 18, 2021, there are still around P61 billion of the P165.5 billion Bayanihan 2 funds that have not been obligated by the implementing agencies. When you say that funds are obligated, this means specific programs or projects have been identified and commitments have been made for their implementation. The data shows that there are a number of agencies with obligation rates below 50 percent and a few that went even below 10 percent. Underspending has long been an issue with the government and is usually an indication of poor absorptive capacity by the implementing agencies. There are a variety of rea-
Iran’s gamble on hardline president narrows nuclear-deal window By Golnar Motevalli Bloomberg Opinion
T
he frontrunner in Friday’s presidential election in Iran is an austere cleric and judiciary chief hostile to the West, who’s expected to prevail as millions boycott a vote their favored reformist candidates weren’t allowed to contest.
The stage-managed elevation of Ebrahim Raisi, 60, carries risks for the country’s guiding hand, Supreme Leader Ali Khamenei, given the ayatollah’s desire to quickly rid Iran of US sanctions and a history of political unrest. But the 82-year-old Khamenei is eyeing a sweep of leadership positions for ultraconservatives, and Raisi’s widely considered his preferred successor. A Raisi victory would ensure a “level of harmony” among the establishment, said Foad Izadi, associate professor at Tehran University’s Faculty of World Studies, after a maximum eight years under the more moderate Hassan Rouhani punctuated by rancor. What it might mean for those outside Iran’s power structure is less clear. Rouhani remains in office un-
til August, giving his negotiators a few more weeks to revive the 2015 agreement with world powers that lifted penalties on Iran’s economy and curtailed its atomic program until Donald Trump withdrew the US. The diplomacy is being watched by oil traders eager to understand when Iranian crude might flood the market, and Iran’s neighbors after the standoff with Trump pushed the region close to war and Tehran to enrich uranium near the level required for a bomb. Ali Vaez, Iran project director at the International Crisis Group, foresees a grand bargain. “The system probably prefers the deal to be restored under Rouhani, so that he shoulders the blame for any shortcomings but Raisi reaps the economic dividends,” he said. Raisi’s
unlikely to make compromises the Rouhani administration couldn’t accept, so “if the nuclear deal isn’t restored by August, it’s probably beyond repair.” Raisi’s nearest rival is Central Bank Governor Abdolnaser Hemmati, who’s backed by some prominent reformists. Saeed Jalili, another leading religious hardliner, withdrew on Wednesday. If turnout exceeds expectations and boosts one of Raisi’s opponents, he may face a run-off. But a Monday poll found just 42 percent of roughly 5,000 respondents definitely planning to vote, with 60 percent backing the cleric. Conscious that many dispirited Iranians are predicted to sit out the election, Raisi’s been attempting to rehabilitate his image as an out-oftouch conservative with little understanding of government. In his campaign, he supported the nuclear-deal diplomacy but downplayed the accord as a “marginal matter.” Raisi has touted his management of Iran’s wealthiest religious endowment, the Astan Quds Razavi,
sons for the inability or inefficiency of an agency in utilizing the funds allocated to it. Take for instance public works. Several projects identified under the General Appropriations Act end up not being implemented due to right-of-way issues. This has an impact on the economy because public spending is one of the biggest drivers of growth. In the case of Bayanihan 2, the urgency of spending the remaining funds is more pronounced. We are far from returning to normalcy. The economy is opening up again but not as fast as we would like it to be. Unemployment has worsened at a rate of 8.7 percent in April from 7.1 percent in March. Our teachers and students are struggling to cope with online learning. Businesses have used up all their savings. Farmers and fisherfolk are struggling to make ends meet. The implementing agencies need to act swiftly. For most of the funds under Bayanihan 2, anything unspent would revert to the National Treasury. This is a disservice to all the Filipinos who badly need the helping hand of the government during this pandemic. Sen. Sonny Angara has been in public service
for 16 years—nine years as Representative of the Lone District of Aurora, and seven as Senator. He has authored and sponsored more than 200 laws. He is currently serving his second term in the Senate. E-mail: sensonnyangara@yahoo.com| Facebook, Twitter & Instagram: @sonnyangara
which owns land and has stakes in companies, as evidence of his business savvy. He’s vowed to prioritize trade with Iran’s neighbors and overhaul management of the currency, echoing Khamenei’s “resistance economy” built on domestic manufacturing and supportive partners such as China and Russia. And he wants to build one million affordable homes, increase taxes on the wealthy, and improve cash handouts for the poor cut under Rouhani as oil revenue plummeted. Conservatives tend to use populist policies to preserve support among a workingclass base. Sara Zahiri, a journalist supporting Raisi’s campaign in Tehran, said the cleric can bring together religious and more secular Iranians. “Reformists use these differences in thinking to divide me from the woman who wears a chador,” she said, referring to the long, black cloak worn by pious women in Iran. “We want this dividing wall to be taken down.” Officials with strong security ties See “Iran,” A13
