GDP Exercise: Business news analysis
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Now, that you guys are now super economists, let’s see if we could tie this all up with what’s going on in our own turn world kawntri. I’m sure you can easily spot which belongs to what category.
Remember our formula? GDP = C (consumption) + I (investment) + G (government) + Exports - Imports.
3 out of 10 Grade 1 pupils won’t finish elementary — Ibon
“Worsening economic conditions in the country have denied millions of children the right to a decent education as shown by increasing dropout rates,” Sonny Africa, IBON research head.
When you read news like this, you begin to ask - why won’t these kids be able to finish elementary? Because they have to work. The C - got affected because there is no income, no income so there is no savings which is why I - is also affected. But how come these kids won’t go to school again? G is not doing anything enough on education. Will our GDP increase when you have kids not finishing school anymore? These kids will eventually become the GDP workforce. Is there going to be productivity there? No real income, either!
East Visayas lacks 1,500 classrooms, 400 teachers
Where is government spending on Education? “Due to lack of teachers, some teachers handle more than 40 students, which is the ideal ratio.”. So, if we are on a roll, why is education on a droll? Actually, I seem to agree with the news, 40 students in one class = ideal ratio. 40~!@#$%^&*?? Eh boung barrio na yan ah! Well, trust me, you will see some more headlines similar to this next week.
So, why are we in this situation? Actually, why is it always like this? Here’s the answer:
Lack of gov’t support for Philippines public education declining
The 2006 budget of the Department of Education (DepEd), expressed in real terms (2000=100) has fallen by almost 6% from 2001 allocations. This means that, based on school year (SY) 2005-2006 enrolment figures, each public school student is allocated a share of only P5,082 of the DepEd budget, down 11% from P5,726 in 2001.
Now, think about this: where is the biggest budget going? Sa mga baboy di ba? Read: Pork and barrel that we have no idea where it usually ends up.
It’s bad enough that education has been erased from the priorities, those people who are trying to earn a living to have some money for their kids education are hurting. How do I know?
Read on…
Strong peso hurting seaweed industry
Need I say more? We know this one already. When you have a strong peso, those foreign buyers will find our products becoming expensive and this is what our seaweed farmers are experiencing.
 Strong peso wallops Davao’s banana growers
So, is the strong peso really benefits the majority of the Philippine labor workforce?
Tax effort slips to 12.2% in Q1 on weak collection
Isn’t it that the news on rising GDP really funky? Mali ba ang balita dun sa rising GDP? Let’s revisit our formula:
GDP = C + I + G + Ex - Im
Where does Tax Collection belongs in the formula? It’s on G. Remember this, G - meaning Government can only spend what it collects. So, G should always equal T (tax) in a perfect world. But we are one funky 7,000 and 1 islands run by ______ (fill in the blanks!). Now, if your tax collection went down - effect? Class! Answer me!!! I’m telling you - my original findings is that - what propelled this rise in GDP is the CONSUMPTION, meaning all of our OFW remittances.
Read the analysis I made. Is the Peso really gaining some strength? But, why do you think tax collection is not working right? Well, here’s one.
Almost half of Manila businesses not paying taxes - BIR
How many islands do we have? How many cities and barangays do we have? Replicate what businesses in Manila does and I’m sure this is also being done nationwide. Get the idea?
Poll: RP inflation at 2.57% in March
Where does this one falls? Under C - Consumption. You don’t want high prices because you’d be affecting consumers. Is this news good? But of course. For now. Why? Election just finished and there’s a lot of money floating around! A lot of stones!
“Escalating prices of gasoline and liquefied petroleum gas in the world market prompted local oil firms to raise gasoline prices by 50 centavos a liter and cooking gas prices by 56 centavos a kilogram over the weekend.” Ugh! Ok. Now, you know which component of GDP is affected. Anyone? Anyone?
So, when you have a situation where fuel prices goes up, what goes up next again?
BSP: Consumer prices rise 2.1 to 2.8% in May
And this is just very timely for the opening of classes in June. You get the cycle now my kids in trying to understand all these rising GDP, rising peso, rising prices and do we hear anything about rising personal income sa mga pinoys? Anyone? Anyone?
Now, in this article, Poll: RP inflation at 2.57% in March, you will find that Central Bank’s target for inflation is at 4% or 5% at the end of the year. Hmmm… If I were you my dear reader, prepare your wallet and start saving a lot of stones!!!
But you see kids, there are a lot of happy people, look ahead!
Stocks soar as traders celebrate strong Q1 GDP
Yeap, they celeberate the news of the 1st Quarter GDP, going far beyong expectations. Sometimes, I wonder if they are just fooling themselves. And here’s some excerpts:
- Â
Trading was led by market heavyweight Philippine Long Distance Telephone Co. gained P85 or 3.44 percent at P2,555.
Volume traded reached 5.22 billion valued at P6.92 billion.
Winners outpaced gainers 111 to 6, while 46 stocks were unchanged.
Bank of the Philippine Islands, the country’s second largest lender, rose P1 to P69.
Alternative power producer PNOC-Energy Development Corp. jumped P0.40 or 6.90 percent to P6.20.
Ayala Land Inc. rose P0.50 or 3.33 percent to P15.50.
Manila Electric Co. B shares gained P3 or 3.30 percent at P94.
Of course, Meralco gains. We have the highest power rates in the region! Not only we have the highest power rates, the more houses, condominiums, office towers are built, the more they need Meralco. Sounds familiar? It’s called Realty.
But where is Jolibee? What happened to the OFW remittances that are supposed to be consumed at malls read: food? Instead, we see Ayala Land. What does this mean? Ladies and gentlemen, OFW remittances are being spent on realty. Trust me on this. That’s where our money goes. For one thing it’s good because it creates production on building materials. But what happens when we’re ready to go home? No factories to work? Scary thought isn’t it?
Final Words
Well, I hope you enjoyed our GDP in action. I hope you will have more appreciation when you get to read these kinds of news. Beware, sometimes, they will feed you with the news that you want to hear and celebrate. You only need to read a little bit more and then realize that the bottom line is that my friends in Floodway are still struggling.
But here’s what makes me wonder! Was the 6.9 rise in GDP released in a timely fashion such that it be a news BEFORE class opening to pre-empt how bad our education problems are? What do you think?
Popularity: 7% [?]
June 3rd, 2007 at 4:53 pm
Three of every ten grade 1 pupils will have to work before their grade school graduation?! Wow. I somehow find that hard to believe.
Actually, I can’t get myself to believe it. It sounds a bit too strange.
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June 4th, 2007 at 3:29 am
But what happens when we’re ready to go home? No factories to work? Scary thought isn’t it?
- eh di, maging OFW for life. hehe joke. yong ibang factories kasi nagsasara na dahil sa mataas (???) daw ng pasahod sa manggagawa, idagdag pa ang pagkakaron ng unyon (??? ulit).
Almost half of Manila businesses not paying taxes - BIR
- dapat ito ang pinag-uukulan ng pansin kung papano mapapatino yong mga bisnismen sa pagbabayad ng buwis eh.
Tax effort slips to 12.2% in Q1 on weak collection
- dapat eh namumulubi na rin yong mga politishans. hehehe.
3 out of 10 Grade 1 pupils won’t finish elementary — Ibon
East Visayas lacks 1,500 classrooms, 400 teachers
Lack of gov’t support for Philippines public education declining
- etong tatlong to ang epekto nito >>>> Tax effort slips to 12.2% in Q1 on weak collection saka eto Almost half of Manila businesses not paying taxes - BIR, pero bakit parang hindi apektado ang mga politiko? *kamot ulo*
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June 4th, 2007 at 6:15 am
naku nahuli ata ako sa klase… chapter 5 na ata ito sa econ, dami ko na backlog…hindi ko na ata kayang humabol.
tanong ko lang, bakit kadalasang hindi magkapareho ang mga statistics na ibinibigay ng IBON at NEDA? parepareho ba methods at instruments na ginagamit nila sa mga surveys?
regardless of the source at kung ano pa mang mga formula, alam nating lahat na kawawa na ang ating bansa… sasakit lang ang ating ulo sa pag aanalyze kung aling parte ng equation ang dapat gawan ng paraan para umangat ang GDP na sinasabi.
isa pang tanong, di ba free education daw lalo na basic/elementary education? bakit ganun pa din ang resulta ng survey? madaming argumento d2, parang debate ng creation o evolution…. cguro dapat na lang e gawin natin ang dapat para maka ambag sa solusyon ng ating problema…. halimbawa bawasan ang pag iinternet at pag ba blog during office hours hehehe.
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June 4th, 2007 at 10:43 am
@joyjoy,
why is is like that nga? katabi nang good news sa paper, is another news item na sumasalungat sa unang news item?
i’m telling you, i was reading the inquirer, malaya at gma news in one day - labo labo ang news about the same topic!!!
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June 4th, 2007 at 2:03 pm
Naku joy, di ko pwede bawasan ang blog…production yun!
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June 4th, 2007 at 7:48 pm
Prof Reynz,
kung ikaw ang nasa senado, ano imumungkahi mo para gumanda ang ekonomiha ng Pilipinas?
**gets pen and paper
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June 4th, 2007 at 9:55 pm
naku - tekaaa… hindi muna ako magbibigay ng sagot at baka ako sumemplang hahahahaha- hayyy kaya nga ako nag monghe na lamang at ng sa ganun ay makatakas na ako sa mga kaguluhang nangyayari sa ating mahal na bayan dahil helpless lang naman talaga ako noon kahit noong ako ay nagtuturo pa- kahit ang syllabus ay strictly screeened ng mga admin namin maybe just to ensure na walang makakasamang mga elemento na pede naming maituro sa mga bata para ito ay matutong lumaban , naku- suppressed talaga kami noon…kaya nung hindi na ako nakatiis ay nag alagwa na ako at sa kaka alagwa ko ay napadpad ako dito sa mga kalbong bundok na bato ng disyerto…hahahahah—
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June 4th, 2007 at 10:51 pm
@ross,
ok, i’ll take the challenge. for you anaks, i have decided to run for Senator, tutal di pa naman tapos election di ba?
da-draft ko plataporma ko. ok?
I AM RUNNING FOR SINAAATTUURRRRR!!!!
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June 5th, 2007 at 12:16 am
diba Senatress???
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June 5th, 2007 at 9:02 am
reynz for senator!!! pwede ako ang assign sa pagkain? lol
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June 5th, 2007 at 9:04 am
reynz, nagupdate ka na ba ng wp mo sa 2.2? di ako marunong. di ko maintindihan yung nasa instruction ng wp about mysql ba yun. kaya 2.1 pa rin ako.
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June 5th, 2007 at 6:15 pm
**waiting****
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June 6th, 2007 at 1:00 am
@ross! he he he! kulit! give me time no?! i have to think! tink* i wanted this to be complete! i have to have a political tagline chuva! you know! i have written some platform! i can’t go campaigning taz mukha akong si GOMA! pede ba! ayokong mapahiya sayo no?! i wanna be (C5 is correct!) a SENATRESS!! (nyeta matress na matress ang dating!)
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June 6th, 2007 at 1:01 am
bluep,
2.1 pa rin wp ko, y? basta click mo lang yong update! i mean, in my site ganun kadali he he he
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June 6th, 2007 at 7:15 pm
***waiting with patience
muahh!
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June 6th, 2007 at 11:09 pm
GRABENG PRESSURE! I have just come up with my political tagline! he he he!
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June 6th, 2007 at 11:42 pm
i wanna be (C5 is correct!) a SENATRESS!! (nyeta matress na matress ang dating!) ghandee >>>>>>>> rolling on the floor laffin my ass off.
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June 7th, 2007 at 1:15 am
ghandee baka iba na lumabas sa ass mo ha =))
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June 7th, 2007 at 1:56 am
grabe! I need more and more coffee!! Muntik na kong malaglag sa upuan ko!
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June 7th, 2007 at 2:09 am
What’s wrong with my comments? Why am I being zeroed in by Akismet??? Argghhhh…
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June 7th, 2007 at 2:41 am
yong akismet fav mo is ok, but yong c5 hinuli na naman po nang sikyo ko! ha ha ha! bawal kasi dalawang link! ayaw nya! ha ha ha!
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June 7th, 2007 at 3:00 am
eh kahit nga walang link hinuhuli eh!
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June 7th, 2007 at 3:08 am
Ok, this is another test. Trying to deduce if it’s my url or my name that’s getting the attention of Akismet…
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June 7th, 2007 at 3:14 am
Ayun, nahuli uli si C5…kahit iba yung link…This time, back to AF, pero back to ceefive ang link…
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June 7th, 2007 at 3:18 am
I therefore conclude that it’s the name ‘C5′ ang mainit sa mata ni Akismet. Pati sa bahay ni Ros hinuhuli…
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June 7th, 2007 at 3:23 am
Isa pang test…giving a space in between…
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June 7th, 2007 at 3:38 am
The world in 7 pictures…
nakita ko lang ito…
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June 7th, 2007 at 9:53 am
C5,
wag mo sigurong gamitin ang c5, use ceefive…mahirap managip sa dami ng spams ng akismet eh!
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June 7th, 2007 at 10:35 am
Ikaw ba Ros nakikita kong nandito sa palasyo?
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August 6th, 2007 at 1:59 pm
[…] 2006 budget of the Department of Education (DepEd), expressed in real terms (2000=100) has fallen by almost 6% […]