Skip to main content

Money

This PCIJ article about the Philippines no longer being a "Third World Country" and is now a "Second World Country" according to the President is indeed interesting. I know the economy is steadily growing and that income per capita is higher than three years go. However, I don't see how that makes the Philippines "Second World" or better yet "better than before".

We all know that in the Philppines, there is the top 10% (or even less) which makes in insane amount of money. Much like in other capitalist countries (and some socialist like Singapore). The majority of the middle class (comprising around 30-40%) pay the most taxes yet don't get the decent government services that they (_we_) deserve. The rest though, are living below the "acceptable level of living" or what they want to call the "poverty line".

Let's do a little math:

10% -- Higher Class :: The Taipans, Tycoons, Moguls, and Big Boss Men/Women
40% -- Middle Class :: Paid by the day/hour employees and Self-employed entrepreneurs of SME's with black bottom lines
50% -- Lower Class :: Unemployed; Self-employed entrpreneurs of backyard enterprises with red (in bold) bottom lines

So how much money will the higher 10% need to make to compensate for the rest of the 90% to make the per-capita income rise to $1,400 ? Let's try:

Let's say we have 100 people. So 10% is 10, 40% is 40, and 50% is 50. Pretty straight forward... Now let's see if we keep the income of the 90% constant: set it at $500 each. So now we see:

( .90 * Total Money Earned ) / 90 = $500

( .90 * Total Money Earned ) = $45,000

That means, 90% of `Total Money Earned' is $45,000 for 100 people. So how much does Total Money Earned have to be, so that when divided by 100 makes $1,400 ? Answer is: $1,400 * 100 or $140,000.

That means: $95,000 had to be made by 10% of the population to make it $1,400 per person! If we scaled the example to 100 Million people, that means 10 Million people earned $950 Million while assuming that 90% only made $450 Million!!!

If you can call that "Second World Economics", I'm afraid of "First World Economics" because at the trend we're going, that will mean 1% of the population will make sure that everyone else looked like they earned $2,000 per capita.

CHill!!!

Comments

  1. Chilling indeed. I was the commenter after your comment in PCIJ and decided to check your link and the computations is very clear to grasp, even for a guy like me.
    I belong to the so-called first world or whatever that means, but to the moment I am still in the fourth world financially (all my faults though). And this is the way I see it while we can call ourselves rightfully in the first world. The last time I checked, we have a $34,000 per capita average. A single working poor can make full time an average of between 25 to 30 per anum. very close. The poverty line is drawn according the province standard and it is somewhere between $1200 and $1500 a month. Anyone not making that much can either apply for assistance or subsidized housing. Health care is universal (not to worry on that regards). Anyone incapable of working, disabled, physically or mentally over 18, is covered by complete social assistance. Those in your example of 10% must subsidized the 20 to 30 percentum of population to get close to the average. A very simple formula and I hope the Govt. of my once and still my beloved Philippines, will realized that getting up to the world ranking is as simple as sharing.

    ReplyDelete

Post a Comment

Popular posts from this blog

Futures and Options III: Economics, Journalism, or Computer Science

I realise it's been a year since my previous post on this blog, and I've found myself having very little time to do another "brain dump" on the subject of my early choices in life. With that in mind (and as I'll be traveling again soon) I get to think a little more and reflect on a few of the things that have happened.

Much like the previous post, this one's set in high school -- where I was part of the swimming team, in a band, had been programming with Turbo Pascal, Java, and then C++ later on, and was about to make a choice that would literally change the course of my life. This one is about the choices I made, and the ones that were made for me.

Note: This is part 3 of a series about my early choices in life which have gotten me to where I am today. I would greatly appreciate your feedback and thoughts, as well as for your reading through this series!


Rant: Despair and Hopelessness

This weekend I had the chance to do a Google+ hangout with my father in the Philippines. He and I don't talk often but we do have a very good relationship. My dad is cool like that. In this hangout we talked about a few things happening in the Philippines and I've gotten the feeling that my homeland is getting ever deeper into economic disrepair, and that the politics to which I've come to be hopeless on is beyond repair. I've wanted to get something off my chest that's been bothering me for a while now, so if you would indulge me please read on.

Background

I grew up in a part of the Philippines where the land is fertile, there are thriving industries, and there's a certain sense of abundance and stability. This part of the Philippines has good schools, good employment opportunities (mostly industrial and service industries), good investment opportunities (real-estate and agricultural), and good potential for growth. This was true when I was young and this is tr…

Get a Life Coach

Have you ever played a sport whether individual or team sports where your top performance was required for any measure of success? If you have, you may have had the benefit of at least one coach guiding you to point out better form, better strategies, alternative approaches, keeping you accountable, identifying our strengths and weaknesses, and overall telling you to listen to your body and focus on your goals. If you haven't then would you like to have someone on your side, not judging you then generally cheering you on while you attempt to achieve whatever your goals are? For the past year I've been working with a life coach and I can say it's worked so well for me that I cannot help but recommend everyone consider investing in life coaching.

I used to swim back when I was a student in university as part of the varsity team. I had a number of coaches then who taught me not just the technical aspects of swimming, but also the mental fortitude required to train effectively…