ECONOMIC DISTRIBUTION  

  
  
I. INTRODUCTION  
  
  
Economic Distribution is the way that an economy or a country distributes its total output, wealth, or
income. In Economics the Theory of Distribution is the structured attempt to allocate the sharing of
national income among the owners of the factors of productions such as land, labor, and capital. Should
they allocate more of their scarce resources in agriculture or manufacturing? The concept of scarcity is
that we have limited resources but we have unlimited wants. Furthermore, the opportunity cost is the
“cost” incurred of doing the other alternative. For instance, assuming that it is Monday and you were
given the choice of either going to school or at the cinema, assuming that you have chosen the cinema
then your opportunity cost of going to the cinema is not being able to attend the school vice versa. Who
should receive the goods and services after these are produced?  
 The Essay will be based on the Philippine data, hence the essay will focus on the Philippines. According
to the World Bank, the Gross Domestic Product (GDP) of the Philippines was worth 376.80 billion US
dollars. As of May 2020, the growth rate of the Philippine is at a declining rate, the GDP decline at
around –16.5% while the GNP at a -17% decline. Both are the essential measurement of economic
distribution in the Philippine.   
  
II. BODY  
  
Based on Equality   
  
As of August 2015, the population of the Philippines is at around 100.98 Million. Goods and services are
distributed to those who are able and willing to pay for that product. This then reflects on the income of
the consumer. If we distribute the goods and service equally then everyone will be happy, but this is
almost impossible to do because in the Philippines inequality is a real thing and the Philippine has one of
the highest poverty rates in the world, According to the Philippine Statistic Authority (PSA), the
Philippines has 17.7 million Filipino living in poverty and that makes around 16.7% of the population.
That is a real problem of the Philippines because this is one of the factors that hinder the development
of the Philippines, high poverty rate constitutes to lack of income and productive resources. That means
even if we want to distribute our resources equally it is certainly impossible to do so because of other
factors such as income.  
  
Based on Income  
  
 In 2018, the average income for a Filipino family is around Php 313 thousand that is around Php 26,083
a month and, the average total expenditure is around Php 239 thousand that is Php 19,917 a month and
the average total savings is Php 75 thousand. This is only the median average of the income,
expenditure, and savings of a Filipino family hence, this number did not consider other factors such as
poverty. The distribution of goods and services is based on the capability of a consumer to buy the
product and service, also the purchasing power is based on the income that an individual has. This is
how the services and products are being distributed. It is not the based way of distribution but is widely
used by almost everyone based on the distribution of income.   
  
   
 Based on who deserves to get more of what and how much?  
 
 
In the Philippine, the 17.7 million Filipino deserves to get more of the product and service because they
are the one that needs it the most. Allocating goods and services based on individuals or families that
deserve them the most is a good thing, but then almost everyone needs the goods and services it just
happens that they are the most in need of that. The problem with that is that percent of the population
are not able to purchase the said goods and service.  
 
 
The Government should decide who gets what and how much? 
 
 
An economic system wherein the government decides who gets what and how much is called Command
Economy in this type of economic system almost everything including the distribution, naming the price
of the product is controlled by the government. There are modern command economies that are
present the most famous one is North Korea. Command Economies are more focused on
macroeconomics and the central planning of the country. We all know that North Korea is not the best
economy in the world because of the more government focus approach towards the economy. 
  
  
III. CONCLUSION  
There are no such things as a perfect economy. The distribution of our goods and services is essential
and we cannot determine the best way to distribute it that is why we just distribute it based on the
highest bidder and it is commonly the preferred way of distribution because there is competition,
efficient allocation, and Financial Incentives. 
  
  
  
  
  
IV. REFERENCES  
https://psa.gov.ph/income-expenditure/fies/title/Annual%20Family%20Income%20is%20Estimated
%20at%20%20PhP%20313%20Thousand%2C%20on%20Average%2C%20In%202018