Unemployment slighty decreased in Q2 2012 BUT Philippines still TRAILS its neighbors in Poverty Reduction

BS Aquino’s economic czars and cheerleaders have been making the media rounds about the reduction in unemployment in Q2 2012.

So what if the unemployment was reduced to 6.9%?

Is 6.9% unemployment enough given that there is 19.3% underemployment?

Is 6.9% unemployment enough given that the Consumer Price Index has increased? What that means is – sure you have a job – but does your job pay enough so you can afford to purchase basic commodities?

Is 6.9% unemployment enough given that the Philippines is trailing in Poverty reduction?

Thus far, what are the solutions on the table. More protectionism, more tariffs, more taxes, more public debts, more welfare spending — the same old shit.

As pointed out by Nomura securities

“The Philippines has lagged in its poverty-reduction agenda and that is why rating agencies are focused on revenue growth,” said Euben Paracuelles, a Singapore-based economist at Nomura Holdings Inc. “More revenue would allow the government to invest in human capital, education and health, which will eventually lead to reduction in poverty rates and better quality of life.”

I don’t agree that government should be investing in human capital, education and health.

However, I assert that individuals should be investing in their own human capital, education and health – not government.

The increase in government “revenue” should come from an increase in economic activity due to higher volume and not due to an increase in tax rates of a small tax base – as demonstrated by the low tax rates and ease of doing business in Singapore and Hong Kong.

P.S. Will handing out more condoms – reduce unemployment, underemployment, and poverty? Hell no it will not – market-driven economics does.

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BongV has written 421 stories on this site.