Sour-graping anti-Duterte groups, plain fault-finders and the political opposition are ganging up on PRRD, using hammer and tongs to smudge and blacken the popular image of the president before his millions of supporters.
They blame the TRAIN Law for the inflation and the increasing costs of prime commodities as if the heavens and the stars above are falling on the Filipino people, just to create the most unfavorable image of the Malacanang tenant.
They also take Digong to task for his independent foreign policy and friendly stance towards China.
But the ordinary folks who put their trust and faith on PRRD are not biting. Assuming they don’t know the meaning of “inflation,” these people of the C, D and E classes are of the common belief that things are getting brighter and better – much better than where they were during the previous administration.
Inflation is created when there is too much money in circulation and when people are buying and consuming more because they have too much money to spend.
Because the demand is greater than great, the natural tendency is for prices to increase. Especially if the supply cannot meet the demand head-on.
But governments do a lot of spending particularly in infrastructure because this is one way of pump priming the economy. Remember when global recession hit every nation in 2008, Pres. Barack Obama tried to save big US companies from going down by writing off their debts and their bankrupt situation?
That is expectantly what the “build, build, build” program of the incumbent administration is trying to do and balance the local economy.
The jobless and underemployed millions need emergency employment opportunities where, even for the time being, they could earn some decent income without having to stay idle and join the ranks of idlers and loafers (istambays) in their neighborhood.
The trade war between the US and China could also affect our economic outlook if our government does not play its cards well.
We all know that China imports a number of Philippine products including bananas, mangoes, milkfish, canned tuna and other produce.
The lower peso-dollar exchange rate makes our export products cheaper and more attractive, thus creating a brisk import business climate. Local exporters earn more in terms of the volume of exports.
NEDA Sec. Ernesto Pernia has therefore endorsed the five-year Philippine Export Development Plan, a road map from 2018-2022 aimed at improving exports performance as well as increasing this sector’s competitiveness.
In a press statement, Pernia said the latest export numbers (April 2018) have not been so good. All products, Pernia added, had negative growth rates.
Save for minerals, forest products and electronics, the NEDA chief said there is a need to ramp up exports to meet the country’s targets embodied in the Philippine Development Plan (2017-2022).
Raising the daily minimum wage is also driving prices up, including tuition fees.
So, is there a vicious cycle created as we attempt to improve our economic circumstances?
Yes. In fact, Western public policy makers are wary about the stepladder-like rise in the daily minimum wage.
In the early sixties under the Diosdado Macapagal regime, the daily wage rate was just P4 a day. What gives?
Some economists who disagree with the implementation of a daily minimum wage standard say that there is consequently more unemployment being created by the step-ladder increase of the daily minimum wage rate.
Only large companies who can afford to pay the daily minimum wage survive. But the small and medium sized business enterprises need to re-arrange and configure their employees’ number to avoid unnecessary overhead operational expenses.
Of course, the biggest reason for inflation and its consequent effect on prices of commodities is the uncontrollable tag price of imported oil where our economy is fully dependent on to run our industries and manufacturing sector.
(Email your feedback to fredlumba@yahoo.com.) Prov. 25:16: “If you find honey, eat just enough – too much of it, and you will vomit.” GOD BLESS THE PHILIPPINES!
