Economics

    On Inflation and Poverty: It's getting more expensive to be poor

    Because the prices of various goods and services rise and fall at different rates, different groups of people, most notably the poor, experience the burden of inflation much more than the rest of the population.

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    On the Philippine IT-BPO Industry- 'Bayaning Puyat' or Dead-end Job

    Many skilled Filipinos detest the idea of working in a call center, but is that position justified? In this photo is the Ortigas skyline, one of the central business districts in Manila, the capital.(Photo: RamirBorja/Wikimedia, CC BY-SA 2.5)

    The call center industry, or more widely called IT-BPO, has received its fair share of praise for contributing to economic and job growth, but a job in this industry still carries the stigma of low pay and low skill. We can take a look at the IT-BPO industry using data from the Bangko Sentral ng Pilipinas to shed some light on the graveyard shift.

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    On Philippine Foreign Trade: USA vs China

    The world is in the middle of an epic struggle for political influence between the USA and China, but what does this mean for Filipinos, who are trapped in the middle, both in the geographic and political sense? We can take a look at the data on one of the avenues of influence, foreign trade, and find out a little bit more.

    GOLD VS GLORY - There is a legitimate debate as to whether economic or military power is more relevant in the long-run. In this photo, the USS Washington enters the Manila bay for a 2010 port visit. Flickr/US Navy Official Imagery, CC BY 2.0)

    The conflict between East and West is heating up - US bombers defy the Chinese Air Defense Identification Zone (ADIZ) over the East China Sea, and US and China Naval Vessels almost collide with each other in the West Philippine Sea.

    All this leads me to think how this will impact the Philippines, a tiny country literally and figuratively caught in the middle. Situated in the Pacific Ocean, the island nation has always aligned itself with US interests, but recent developments over the past few years have resulted to Philippine officials taking a more measured approach to Chinese foreign policy.

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    On the Effectiveness of Sin Taxes in the Philippines (2013 Q3 Update)

    UPDATE (Sept 16 2014)

    This post has been updated with 2014 Q2 data.

    How are the new sin taxes faring in the 3rd quarter after their implementation? The numbers say - pretty good. (Photo: Fried Dough/Flickr, CC BY 2.0, cropped)

    SIN TAXED - How effective are higher sin taxes at reducing alcohol and tobacco consumption? Some say it’s a ‘tax on the poor’ and it would only lead to downshifting to cheaper, more dangerous brands, others are all for it, armed with the basic principle of demand. Newly released 3rd quarter national accounts can shed light on the situation.

    This is an update of a previous post I made a few months back to incorporate the new Q3 statistics. If you want to see the details of the sin taxes, you can check the previous article.

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    On Why You Shouldn't Save While You're Young

    “Save while you’re young” is one of the most common pieces of financial advice for the fresh young professional, but there is an economic argument that it can be overdone. In your early twenties, you’re better off having fun, learning, and making new connections, because YOLOETSI (You Only Live Once and the Earnings Trajectory Strictly Increases).

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    On Tax Evasion in the Philippines: They go to crooked politicians, anyway

    TAX EVASION LOSSES - The Tax Justice Institute estimated the amount of taxes lost due to tax avoidance for several countries, including the Philippines, using World Bank data on shadow economies (the unregulated, but not illegal part of the market). Find out how much the government loses from tax evasion and how it compares to some commonly quoted government numbers.

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    On the Effectiveness of Higher Sin Taxes

    UPDATE (Sept 16 2014)

    This post has been updated with 2014 Q2 data.

    UPDATE (Dec 11 2013)

    This post only uses data for the first two quarters of 2012. I’ve updated it with the latest 3rd quarter national accounts data in a quick new post, so you might want to check that out afterwards.

    Around 1% of household expenditures go toward purchasing cigarettes. (Photo: Flickr/Bachmont, CC BY 2.0)

    HOW EFFECTIVE ARE HIGHER SIN TAXES? Last year, President Aquino signed the Sin Tax Bill, raising the effective tax burden on sin products from 26% to 63% within 5 years. It had two goals: (1) raise revenue for the government, and (2) reduce cigarette consumption and negative externality. It’s now been half a year since the new taxes were implemented, and it’s a good time to assess how it’s been achieving its goals so far.

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