Attempting to Measure Welfare in the Philippines

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“Most of the unemployed are not poor; and most of the poor are not unemployed.” If read at first this statement may seem to be absurd but it is in fact the reality that plagues our country today. For one, it is determined that unemployment brings upon the prevalence of poverty but how come would the poor in the Philippines be in fact be in the midst of the employed? Emmanuel S. de Dios and Katrina I. Dinglasan have adequately answered this baffling phenomenon with historical data and mathematical computations thus proving that “unemployment” is not an effective measure of welfare, i.e., in our country.

The Philippines in its current state cannot be painted in its best picture hence it stands on unsteady grounds both economically and socially. Poverty, crimes, corruption, and many more scourge the society and with these trends the Philippines cannot be expected to easily rise with a few ticks here and there but with radical action both from its government and its people.

“There is no system of unemployment or welfare benefits”

It is an undeniable fact that the Philippines compared to its richer counterparts (a comparison that explicitly shows our country’s long journey to prosperity) lacks a system of social benefits, even though its people deserve one. Given that the Philippine government implements high taxes on everyone it is a wonder that the share of everything we earn given up to the government does not go back to us when in fact it is the their duty to facilitate these endeavors. Welfare benefits is just one of these endeavors but it seems that this one is far from being fully organized such as the other efforts of the government as long as corruption and disarray lingers in the system there is nothing that the citize...

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...elopment Authority). With the TESDA people who wish to be more competitive in the labor force can be trained at a minimum cost, allowing them to master skills that are required mostly in labor extensive industries that grants higher wages.

Consequently, if the government is successful in improving its human capital it will come a time where the labor force will have a higher bargaining power granting them higher salaries and wages. With the rise in the quality of labor more investments will be encourage to come to the country, and with the rise in investments overall prices and wages will lie in equilibrium where, hopefully, the cost of living will be better. All in all with the increase in the quality of labor that our country can offer positive consequences will unfold one by one yielding large improvements which can be quantified using the multiplier effect.

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