June 24, 2013

The Two Economy

While many would say that Philippines economy would be best measured using Gross Domestic Product (GDP); I would agree, but I would say that we have two GDP: GDP of the rich and GDP of the poor. The GDP of the rich has positive growth while the GDP of the poor has negative. The GDP of the rich will grow more as time flies; the interest of their interest will double, while the poor will remain uncertain about the future.

As the rich get richer and the poor became poorer, what can be done? Right imposition of regulations, peace & order maintenance, and infrastructure support will sustain the growth of the businesses. On one hand, livelihood and education programs should be targeted in poor communities.

With limited budget and time, allocation of resources must be done right to assure that inclusive growth is attained. 

Post script: no society can be truly happy with a portion of it being down to poverty (Smith) and that the true way to lasting peace (or development) is by helping the vanquished rebuild (Keynes). Let us build our nation by helping one another.

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