REACTION

PAPER
(THREE ECONOMIC ISSUES
OF THE PHILIPPINES)
SUBMITTED TO:
MRS. RONALYN BISQUERA
SUBMITTED BY:
SHY B. MANZANO
XII-ABM-1
 UNEMPLOYMENT
Philippines is facing a lot of economic problems making it harder for the country to
progress and rise from being a third world country. One of these economic problems which is also
one of the major problems of Philippines is the rising rate of unemployment. Unemployment is
always considered as one of the major economic problem of the Philippines ever since. It is a
phenomenon that occurs when a person who is actively searching for employment is unable to find
work. It is often used to measure the health of the economy of a certain country through finding its
rate. Unemployment rate is the number of unemployed people divided by the number of people in
the labor force. According to National Economic and Development Authority (NEDA), between the
years 2006 – 2015 the recorded average percent of Filipinos who are unemployed is 7.4 percent.

For the latest Labor Force Survey done by Philippine Statistics Authority, they have
recorded that the percent of unemployment rate have increase by 0.2 percent. It is showed that in
the year 2016, they recorded a 5.4 percent and in the year 2017, it increased to 5.6 percent. NEDA
said that the reason for this increase was because of the typhoons that greatly affected the
agriculture sector of the Philippines.

It is said that if a society has no work available for its community then its economy is in
danger. In connection, a progressive society and economy is a society who have many jobs for the
many people. Poverty is like disease and employment is the best remedy for it. So a country who
lacks jobs for its people, it will be impossible for the country to extinguish poverty.

It is said that there are three main causes of unemployment and the first one is that job
market is greater than job created. In relation, it is said that the number of jobs and work vacancies
cannot accommodate the vast number of Filipinos who is seeking for job. Although the government
is doing their best to attract foreign investors many Filipinos are not getting the job because they
were said to be under qualified and their age is not qualified for the job. It is hard for many Filipinos
to get the job because of the unattainable qualifications for the job.

` Secondly, is the rural to urban migrations. It is in the mentality of a lot of Filipinos that
progress are in the urban areas because jobs openings are in there. If only the government will
improve the economic environment it may open a lot of job opportunities and it will not be needed
for the people who are in rural areas to migrate to urban areas. Last cause of unemployment is that
many of the unemployed individuals are college graduates. It is hard for the college graduates to
obtain the job because they lacked the experience that an organization qualifies.

In my own understanding, unemployment will only be eradicated if we will learn to become

business-minded. Instead of seeking of job opportunities why not create job opportunities. Be the
one who will open job openings to many Filipino job seekers by starting a business that you will
personally run and develop it into an organization that will help a fellow Filipino or people who are
in need of job. If this will happen it may help our economy grow.
 POOR QUALITY OF INFRASTRUCTURES
The quality of infrastructures of different has become one of the representation of what is
the condition of their economy. Like for example countries like Japan, Korea and United States of
America. These three both countries have the best infrastructures, their train stations, roads and
buildings. It is also said that the quality of infrastructures brings an effect to the economy of a
country. It is not unknown to us that Philippines has a poor quality of infrastructures hindering the
growth of its economy.

Poor quality of infrastructures may appear to be not a major economic problem but it is not
because the quality of infrastructures plays a major part on the slow growth of Philippines;
economy. Insufficient infrastructure has been a major constraint to economic growth and poverty
reduction in the Philippines.. According to Emillio Neri Jr., lead economist at the Bank of Philippine
Islands (BPI), infrastructure can be our weakest links in the progress of our economy. But what
made the Philippines to appear to have poor quality of infrastructures

First, is the major traffic jams in the urban areas most especially in Manila. A day will not
past without experiencing being stuck in a traffic jam when you are in the city of Manila. Sometimes
it will take many hours before you can arrive to your destinations. A lot of our foreign tourist that
traffic jams in the Philippine are there worst experiences every time they visit our country.
Sometimes, Filipinos will resort to MRTs and LRTs to avoid traffic jams but then again obstacles are
can be faced when riding in this train services which will lead us to our second representation of
Philippines having poor quality of infrastructures, the train stations. Last year MRT trains
experiences sudden stops while transporting the people to the next train stations. Because of this
unpredicted stop and malfunctions of the MRTs had no choice but walk their efforts to arrive in the
next train stations. Sometimes, Filipinos will complain because of the long queue when getting their
tickets. There is also videos, that the doors of the MRTs and LRTs are not closed when the train is
moving. Sometimes, the door will close abruptly. Last examples are the roads that sometimes the
reasons of traffic jams and power crisis that our country is facing.

Poor quality of infrastructures scares foreign investors to invest in the Philippines. Without
the investors it will be impossible to us to have a fast economy growth. Without them it will be hard
to open new job opportunities. This economic issue hinders the government to have access to the
natural assets of our country. It will be hard many people highly rural areas of our country to apply
to the services provided by the government which is sometimes can only acquire in the urban
areas.

I believe that infrastructures is one of the key element in curing poverty and elevating the
economy of our country. If our infrastructure will be upgraded and improved it will result to many
job creation and massive investments from the outside countries thus increasing the fund of the
government budget for improving the education, health and other social programs will greatly
benefit many Filipinos. Consequently, elevating the economy of the Philippines.
 TRAIN LAW
Philippines is considered as one of the third world countries or simply one of the rising
countries in the Asia. So when the economic rate of the Philippines is being compared to the
countries who has abundant and bountiful economy like United States of America or Asian
countries like China, Philippines will be nothing compared to them. This statement may appear
harsh and degrading but we Filipinos must need to be reminded and wake up by this harsh truths.
A fact that our country is not great and economically stable as we positively perceives our country.
Our country cannot change its current state into more abundant state because of this certain
economic issues and problems that our country is facing. For example, unemployment, income
inequality, and a lot more economic issues that hinders our country to rise. But there is this one
new economic issue and one of the things that greatly burden a lot of Filipino and that is the
implementation of the TRAIN law. Even though our country does not perceive it as an economic
issue, many Filipinos considered as it is because of the bad effects on the expenses and budgeting of
many Filipinos.

Tax Reform for Acceleration and Inclusion, or as the population call the “TRAIN LAW” is a
tax reform law implemented by the government last January 1st, 2018. According to the
government, the goal of the Train Law “is to create a more just, simple, and more effective
system of tax collection, as per the constitution, where the rich will have a bigger contribution and the
poor will benefit more from the government’s programs and services”. To be able to attain these goals,
they lowered the personal income tax, simplified the estate and donor’s tax, but those taxes that
will be removed will be balance by increasing the excise tax of petroleum products, increasing the
excise tax of automobiles and lastly increasing the tax of sugar-sweetened beverages.

Even before the implementation of the TRAIN law a lot of parties showed their
disagreement for the tax reform. They said that it will not totally help all Filipinos and it will only
increase the burden of those Filipinos because it will increase the prices of the commodities. But
then again, their petitions were overruled and the TRAIN has been implemented.

In my perception, TRAIN law does not really help all the Filipinos and it will not totally
eradicate poverty here in the Philippines. With the new tax reform law, al lot of the price of our
basic commodities has dramatically changed since the law has been implemented. Most especially
the sweeten beverages like soft drinks. For example the Php 25.00 Coca-cola litre become Php
35.00; the Php 17.00 RC cola increases up to Php25.00. These increases of beverage made a
negative impression to a lot of Filipino residents.

Our family owns a sari-sari store, and I must say that the TRAIN made an immediate effect
to the prices of the products and commodities and to our income generation. A lot of our consumers
showed their shocked and disbelief when the prices have increase. After some weeks, a lot of our
customers lessen the number the amount of soft drinks they buy and consume. Last year, the store
can sell 1 case of Coca-Cola litro within 3-5 days but now a one case of that commodity can only
now be sold within a minimum of 7 – 12 days.
 This tax reform brought a significant effect to the daily income of our business. A lot of them
lessen their consumption of the some of commodities because of the undeniable high price of it.
Some also says that it will not totally help all the Filipinos because the benefit that the government
said will bring is only applicable for those Filipinos who have regular jobs and the ones who receive
a minimum wage. It only increases the amount of expenses of many Filipinos.

The TRAIN law may bring some benefits to some of Filipinos but when you perceive it as a
whole; you can see that the tax reform does not really benefit our country. It only increases the
burdens of many Filipinos. Yes, some Filipinos will receive a large amount of salary if some tax will
be deducted but those taxes that are deducted will only be put to our some of our commodities like
gas and drinks. It is like that the new tax reform is only creating an illusion in your mind that you
are rich or plentiful because you are receiving a large amount of cash but when you deduct your
daily expenses for commodities the total amount that will be left is still the same or less than the
amount you are saving when the TRAIN law was still not implemented.