US EXPERT SUGGESTS WAYS TO BOOST PHILIPPINE ECONOMY.

DAVAO CITY, Feb 4 Asia Pulse - To stimulate the economy, the Philippines needs more supply-producing firms that employ more people which will eventually create more demands, according to US noted economist John Mangun.

Government spending to stimulate the economy "has not, is not, and will not work because it's short-term and not self-sustaining or development in nature," says Mangun who writes a regular business column in a weekly magazine in Manila.

The problem with government spending, according to Mangun, is that "it does not create production -- the taking of raw material, like a stone, metal or paper and turning it into a value-added product."

Infrastructure spending, he says, may add and feed thousands of workers at public works and highway projects -- but not the economy," he pointed out.

Mangun said there are only two choices on the supply economic front: "You must stimulate exisitng business to expand or new businesses to be formed. Each will employ more people and create more demand without government suffering financially. "I know this is difficult for government to do without resorting to more taxes," he said.

Mangun cited Japan which poured ...