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Basic Economic Problem in The Philippines

The document summarizes the basic economic problems in the Philippines: unemployment, poverty, poor quality of infrastructure, and income inequality. It provides causes and potential solutions for each problem. Unemployment is caused by a growing population outpacing job creation, rural-urban migration, and unemployed college graduates. Poverty is exacerbated by population growth, rising costs of living, unemployment, and income inequality. Poor infrastructure can be improved through fiscal reform, public-private partnerships, and focus on key sectors. Income inequality stems from political influences, taxes, and wages, and can be addressed through progressive taxation, subsidies for the poor, keeping costs low, and raising minimum wage.

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81 views17 pages

Basic Economic Problem in The Philippines

The document summarizes the basic economic problems in the Philippines: unemployment, poverty, poor quality of infrastructure, and income inequality. It provides causes and potential solutions for each problem. Unemployment is caused by a growing population outpacing job creation, rural-urban migration, and unemployed college graduates. Poverty is exacerbated by population growth, rising costs of living, unemployment, and income inequality. Poor infrastructure can be improved through fiscal reform, public-private partnerships, and focus on key sectors. Income inequality stems from political influences, taxes, and wages, and can be addressed through progressive taxation, subsidies for the poor, keeping costs low, and raising minimum wage.

Uploaded by

carla i
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Basic Economic Problem in the

Philippines

Prepared By:
Sibal, Marvin
Lopez ,Mary Ann Jane
Manio, Mhellodee
Perez, Hazcel
12 - ABM
Basic economic problem
• Unemployment

• Poverty

• Poor quality of infrastructure

• Income Inequality
Unemployment

Common causes
The number of people entering job market has
been greater than the number of jobs created.
The rural-urban migration increases due to
employment opportunities
May of the unemployment individuals are
college graduates
Rural to Urban Migration
WHAT CAN BE DONE TO SOLVE
UNEMPLOYMENT PROBLEM?
1. Appropriate economic policies for labor-intensive
industries.

2. Improve the educational system of the country


especially in the rural areas

3. Minimize rural-urban migration by improving


the economic environment in rural areas.
4. Proper coordination between government and
the private sector to solve the problem of job
mismatch.

5. Slowing population growth. Philippine growth


must increase faster than the population. Limit
the size of families.

6. Provision of more investment opportunities to


encourage local and international investment.
Poverty

Common Causes
• Increase in population
• Increase in the cost of living
• Unemployment
• Income inequality
WHAT CAN BE DONE TO SOLVE THE
POVERTY PROBLEM?

1. Reduce unemployment

2. Appropriate policy on labor income

3. Provision of unemployment benefits for those


who will be unemployed due to natural or man
made calamities.
Ex. Typhoon, Bombing of terrorists, Earthquake
4. Increase social services like education, health
care and food subsidies for sustainable poverty
reduction

5. Appropriate policy on labor income. Self-


existing SustainableSubsistence
POOR QUALITY OF
INFRASTRUCTURE
Poor Quality of Infrastructure
What can we done to improve the quality of the
infrastructure?
• The government shall implement fiscal reform program.
• Continue reform in key sector – particularly power,
roads, and water to improve cost recovery, competition,
and institutional credibility and to sharply reduce
corruption.
• Improving central oversight of the planning and
coordination of investments
• Focus on investment through public-private partnership
to achieve faster delivery of service.
Income Inequality
Income – is the money
that an individual earned
from work or business
received from investment
Income Inequality –
refers to the gap in
income that exist
between the rich and the
poor.
Major causes of Income Inequality
• Political culture
Ex. Voting for the wrong person during election
• Indirect taxes
Ex. Poor people shoulder this taxes like the value added tax –
12%
• Income taxes
Ex. Minimum wage – no tax
A little more than minimum wage – 32% tax
WHAT CAN BE DONE TO SOLVE THE
PROBLEM OF INCOME INEQUALITY?

1. Policies to enforce progressive rates of direct


taxation on high wage earners and wealthy
individuals.

2. Direct money transfers and subsidize food


programs for the urban and rural poor
SOLUTIONS TO INCOME INEQUALITY

1. Direct government policies to keep the price of


basic commodities low

2 Raise minimum wage

3. Encourage profit sharing


Thank you

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