The Spending Based Economy
The Philippines is a consumer and service based economy. Meaning the economy is driven by consumer spending, while consumer’s purchasing power emanates from domestic and foreign services. The latter constitutes the bulk of the country’s economic stimulus substantially sustained by the middle sector acting as the significant consumer base. Think of a pyramid where there is an apex represented by the oligarch constituting the minute portion of the population that owns and controls the big industry. Next is the upper middle section of the pyramid that has the capacity to generate income to sustain consumption of needs as well as wants. Owners of medium and small scale enterprises, professionals, overseas contract workers, technology experts, corporate employees in the pay of large companies and intrapreneur, belongs to this group. At the lower middle section are the contractual laborers, other corporate employees, transport drivers, market vendors, tailors, barbers and t...