ROCAFOR, Mark Kristian S.

December 20,2019
BS Architecture 5-1 Basic Economics with Taxation and Agrarian Reforms

News channels always update us about the price hike of fuel or common goods in our local

market. I observed even when I was a kid that it is often flash on TV news channels especially in areas

affected by calamity such as typhoon. They informed us how these goods increased drastically by

comparing the average or price few days ago to the present time, and I realized that kind of increase of

cost is Cost push inflation which I have learned from our economic subject when I was in high school and

from the seminar I attended last week entitled, ‘‘Usapang May Kwenta: Pagpapalawak ng Kamalayan sa

Pera at Ekonomiya”.

The first issue is about Inflation, Price Stability, and Monetary Policy and Inflation Targeting

discussed by Sir Arnel Adrian C. Salva from Banko Central ng PIlipinas. He talked about the inflation and

price level. Price level is like the average price of the goods and services while the inflation is the increase

of these prices. He said the inflation is not bad. Inflation of 2-4% is a good sign. As part of BSP, they adapt

the monetary policy. It is their instrument in attaining price stability and to influence overall demand for

good services. From that I have realized more how economics play a big part in our everyday life. As an

aspiring architect, consideration with inflation is very important. Estimation for the total construction cost

could be very different from today to the construction phase in the future.

The second issue is about poverty in the Philippines discussed by Sir John Henry Yuson. He talked

about who are the poor. Poor are the individual or family who cannot provide their basic needs – food,

water, and shelter. The official food threshold is about 7,373 PHP, while the basic and non-basic threshold

is 10,481 php, and from that I have realized that it still not enough for a family to meet their basic needs

in a month as Sir Yuson showed us if 10,481 will be divided into 5 member family group (which is the

average family household size) per day. It turns out to be 69.87 or 70 pesos per member per day. That

money is not enough especially for those students or workers who travel to their work. He also talked
ROCAFOR, Mark Kristian S. December 20,2019
BS Architecture 5-1 Basic Economics with Taxation and Agrarian Reforms

about the “game changer” or the Magna Carta of the Poor which has goal to reduce the poverty from 23%

percent in 2015 to 14% in 2022. As per sir Yuson, the goal is in good state, I still can’t say that family with

10,481 php of income is not a poor anymore. I have also realized that the importance of government or

BSP watching over inflation and price stability is very critical especially for the poor as the price increases

higher than other factors such as income, then it will be very hard for the poor to meet their basic needs.

From the talks, I have learned that the inflation is not only from the supply or cost push but also

from the demand or demand pull. When the price increases it could be from too much demand of the

product. Also, I have learned that through this high demand or supply, our natural resources are being

affected. Too much demand of certain product such as wood/lumber could lead to too much supply of

wood which could lead to deforestation and so on. Also, when I was a kid and before the talk, I really don’t

mind the TV news I often see about inflation of goods and services in our local market, but now I have

realized that our government should really pay attention to this crisis for the poor still have the purchasing

power in our markets.