Monday, May 18, 2020

On POGOs in the PH

From free trade perspective, those PH Offshhore Gaming Operations (POGOs) are good. Remember factor price equalization (FPE) theorem in Econ 141 or 241, free mobility of factors of production like capital, labor and (gambling) tech ceteris paribus (all other things being equal or unchanged), will result in long term flattening and equalization of wages, interest, technology cost.

But from rule of law perspective under institutional economics, these POGOs in PH are bad. They don't follow many rules: tax laws, labor laws, immigration laws (no formal work contract), local government business permits, etc. Burara de communista lang.

Re institutional econ, Nobel Econ awardee Douglas North is among the famous personalities. I made a graph about his contribution to econ on the role of property rights, rule of law. 

Toast to Douglas North (March 19, 2016) 

Things that are often sidetracked under communista societah like China incl their POGOs.

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