We often hear people complaining and blaming "the system". Asked about what "the system is" and people say:
1. The political system
2. The economic system
3. The culture
4. The social personality
All in all they are all incomplete and not very helpful descriptions.
To me, when asked about what "a system" is really, I would say, the system of what?
If they would add, "Why everything of course. You know?"
I would say, "The System is a combination of all phenomenon that we could describe as systems that are composed of smaller processes we use in everyday life."
I am kidding you.
That's not helpful, is it?
Okay, I will try to be helpful. Last week I had an epiphany, a revelation regarding a smaller system. It's about the system of business creation.
Let's make it simple so it can be useful.
There are a lot of OFWs. They are sending money home. When the money reaches here, the relatives spend it. So somebody wise (maybe the government) thought, "most of these are not taxable as long as they do not purchase something".
So in comes the wisemen, clothed in silver and crowned with jewels (or maybe wearing a barong).
They are the guru of finance, real estate, life itself and business.
They preach their gospel - and ask money for it.
Their gospel is this: we will liberate you.
"Your liberation is in this thing called passive income."
"Your liberation is in this thing called money markets, mutual funds, stocks, etc."
"Your liberation is in a small or medium enterprise."
"Your liberation is called financial freedom."
These preachers gather followings and legions of admirers. Educated or not, rich or poor, wise or stupid - just as long as they adhere to the same mantra -
"FINANCIAL FREEDOM"
An army of their followers have followed these gurus' sage advices and immediately set out to embark their journey. Their journey led them to invest in the stock market, to buying real property, to starting their own business all in the name of,
you can guess it.
"FINANCIAL FREEDOM"
The government, often cash strapped and plagued by incessant budget deficits, corruption, graft, and bogus investments have done all it can to improve infrastructure, education, technology, and governance itself.
Ah, they then saw this potential revenue stream. (or did they? Maybe they architected it in the first place)
And suddenly these financial types, businessmen, and developers found themselves getting taxed efficiently.
I mentioned four gurus right? Oh ya, I forgot the guru of life itself. The guru of life cannot be taxed since he is tax exempt - because he classified his activities as religious in nature.
This in a nutshell is the subsystem of business that I am talking about.
Remit.
Build. Buy. Invest.
Tax.
or be Tax Exempt.
Meanwhile in a dark corner somewhere in Halls of Governance, three mice were playing poker with very high stakes - the future of the nation.
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