Econ

• Poverty


  "Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not having access to school and not knowing how to read. Poverty is not having a job, is fear for the future, living one day at a time."
• Approaches to defining poverty

  • Absolute income test
  • Relative income test
• In the first semester of 2021 (Philippines), a family of five needed, on average, PhP 12,082 per month to meet their minimum basic food and non-food needs. Families earning less than this are considered poor.
• Causes of poverty


  • Lack of Education
  • Unemployment
  • Discrimination
  • Unequal Distribution of Resources
  • Systemic Issues
• Impacts of poverty


  • Hinders access to education
  • Impacts an individual's wellbeing
  • Increase of crime rates within communities
  • Social exclusion
  • Psychological effects
• While poverty has a bi-directional relationship with mental health, to date, there are no existing studies written on Philippine Mental Health Economics (MHE).
• In the Philippines, poverty is viewed regionally due to significant economic development disparities due to limited education, healthcare, and employment opportunities.
• Solutions and interventions for poverty

  • Education Initiatives
  • Government Policies
  • Social Programs
  • Microfinance
  • Community Development Projects
• Labor


  Work, usually with the intention of receiving payment equal the amount of labor done
• Labor force


  The total number of people working or unemployed
• Unemployment


  A situation where a person actively searches for employment but is unable to find work
• According to the Philippines Statistic Authority, the unemployment rate in the Philippines as for January 2024 stands at 4.5 percent.
• Informal sector


  Jobs that are often unskilled and labour intensive
• According to the International Labour Organization, the informal economy in the Philippines consists of independent, self-employed small-scale producers and distributors of goods and services. Nearly 40% of the workforce in the Philippines is considered employed in a "vulnerable" source of employment, which is a proxy measure for the informal economy.
• Calculating unemployment rate


  Divide the number of unemployed people by the total number in the labor force, then multiply by 100
• Causes of unemployment


  • Lack of Decent Employment Opportunities
  • Lack of Relevant Skills and Competencies
  • Poverty Cycle
  • Limited Work Experience
  • Geographical Disparities
• Inflation


  When the cost of goods and services rises in an economy, the purchasing power of the populace declines
• Causes of inflation


  • Demand-pull
  • Cost-push
  • Inflation expectations
• When the availability of money increases


  The demand for goods rises, which results in an upsurge in prices as sellers determine this as a great opportunity to earn a greater profit
• Cost-Push Inflation


  Happens when all of the supply produced in a market decreases due to the increase in the cost of production. Can lead to the deduction of employees and raise the number of unemployed, as well as decrease the purchasing power of consumers.
• Demand-pull inflation


  Occurs when there is an increase in aggregate demand, categorized by the four sections of the macroeconomy: households, businesses, governments, and foreign buyers
• Recommendations to address inflationary pressures

  • Investing in sustainable agricultural practices and providing monetary aid to farmers as well as fishermen
  • Investment in the development of infrastructures, such as transportation networks, ports, and energy facilities
  • Dealing with government deficits and debt. Rationalizing the government budget and diminishing loopholes
• Tariffs


  Taxes imposed by governments on imported goods to regulate trade, protect domestic industries, and raise revenue
• Duties


  Fees imposed on goods imported or exported from a country, serving as a source of revenue for the government. They include customs duties, value-added tax (VAT), excise taxes, and other charges, varying based on factors such as the type of goods and their country of origin.
• Ad valorem (ad. val.)


  A type of tariff or tax calculated as a percentage of the value of the goods being imported or exported
• Trade Deficit


  Takes place when the imports done by a country exceed that of the exports done by a country in a fiscal year
• Types of duties and charges

  • Customs duties
  • Value-added tax (VAT)
  • Excise taxes
  • Other charges
• REPUBLIC ACT NO. 10667: A primary competition law approved in 2015 of the Philippines for promoting fair competition in the marketplace and protecting well-being of consumer in the process.
• Customs duties


  Taxes levied on imported goods at the time of clearance through customs
• Value-added tax (VAT)


  A tax added to the value of goods at each stage of production or distribution
• Excise taxes


  Taxes imposed on specific goods such as alcohol, tobacco, and petroleum products
• Other charges


  • Administrative fees
  • Anti-dumping duties
• REPUBLIC ACT NO. 10667
• Customs duties


  Taxes levied on imported goods at the time of clearance through customs
• Value-added tax (VAT)


  A tax added to the value of goods at each stage of production or distribution
• Excise taxes


  Taxes imposed on specific goods such as alcohol, tobacco, and petroleum products
• Other charges


  • Administrative fees
  • Anti-dumping duties
• REPUBLIC ACT NO. 10667 is a primary competition law approved in 2015 of the Philippines for promoting fair competition in the marketplace and protecting well-being of consumer in the process