I am not a GMA fan. As I have been telling my friend, if she is guilty of the accusations, bring her to court, indict her and put her away for good.
But when she was criticized severely of her economic policies to the point that the President Elect jestingly said he did not learn anything from her (teaching methodology perhaps), I thought the people just have to learn how economics work. The Aquino government is also adopting the same GMA's fiscal policies.
Budget deficit increased by the Aquino government
According to business dictionary, pump priming is an injection of )relatively small) sums of money by government into a depressed economy to increase purchaing power of people that will stimulate the demand which in turn will boost private sector investment.THE Aquino administration has decided to continue the previous administration’s strategy of pump-priming the economy and raised the budget deficit target for 2010 by another P31.8 billion.The decision effectively increased the deficit target to P325 billion, equivalent to 3.9 percent of the gross domestic product, Finance Secretary Cesar Purisima said Friday after a meeting of the Development Budget Coordination Committee, which sets the government’s macroeconomic assumptions.
The previous government gave rice subsidies and cash to poor people to increase their purchasing power.
Now Budget Secretary Florencio Abad said that the government would look into scrapping the rice subsidy and instead expanding the dole to increase the number of very poor families receiving cash to tide them over.
While poor people spent the money they received from the government tp stimulate the economy, businessmen deposited their profits in offshore banks. While poor people engaged in underground economy such as sa-malamig-banana cue businesses, the businessmen who contributed millions to candidates invest in China and Vietnam where they get more ROI because of lower wages.
It is easy to criticize when you are at the other side of the fence.