EDITORIAL | Higher Costs = Greater Consequences

Belle Ashley Iori Sy
Dec 9, 2022
3 min read

The sudden increase in value of goods and services has made inflation a heated issue in recent months––in particular with the ₱570 minimum wage in mind and just by what means can the majority fit this to survive?

How far can a minimum wage take you amidst soaring commodity prices? In the face of inflation and the fragile economic situation, can Filipinos still endure resilience? What would the marginalized population do to budget their income and expenses in accordance with the skyrocketing costs they come across every day? Can Filipinos actually live on minimum wage?

As was foreseeable, the sudden increase in value of goods and services has made inflation a heated issue in recent months––in particular with the ₱570 minimum wage in mind and just by what means can the majority fit this to survive? All while it seems as though the promised 20 to 30 pesos rice is far-fetched still. Not to mention how grocery store prices are continuously rising. There is no denying that the weight of this crisis is felt more heavily by the poverty-stricken or underprivileged Filipinos too.

Now, let me paint you a picture of a Jeepney driver barely earning a thousand each ride. Given that they do not make enough money from driving, they still have boundaries to pay or charge for rentals. In addition to that are of course the series of petroleum price hikes wherein they even pleaded with the government to intervene in cutting down the cost of fuel—emphasizing how it is rising every week but the charge for commuters has not increased. So as a byproduct, the traditional jeepney now has a minimum fare of ₱12.

What’s more, is that this month alone, the country’s inflation rate rose to 8%, the highest in 14 years. From 7.7% in October compared to November, the report claims that non-food items and services including power, food and beverage facilities, and transport services have all contributed to the inflation rate's ongoing climb. But in spite of the unexpected increase in inflation, the Department of Finance announced that the economic managers reaffirmed to the populace that the government is committed to taking action to decrease the pandemic's reaching repercussions and the subsequent effects of geopolitical risks. Still, it is not enough, essentially with the holiday season around. Is ₱1,000 enough for a family of 4-5 this Noche Buena? Correspondingly, many howled with that recent statement of DTI Undersecretary, Ruth Castelo because it is not.

That is why every single one of us is affected by the ballooning inflation rate in the country. Soon after, the minimum wage will continue to fall as well. Which in effect, is irrespective of its aim to cover the basic needs of a worker and his or her family in view of current economic and social conditions. The minimum wage was initially implemented to ensure that workers, including young lesser-skilled laborers, receive just compensation. However, over time, the intention of minimum wage shifted from safeguarding workers’ welfare through fair pay to a more encompassing objective of helping low-income households out of poverty. Nonetheless, at present, that is far from the case on account of inflation.

As they say, no family gets rich from earning the minimum wage, and considering the economy right now, it should be livable and there must be a concrete plan to beat back inflation. Thereafter, the current food price crisis, which has impacted huge numbers of households throughout the developing world, has once again highlighted the immediate need for policymakers to help bolster their welfare system processes to prevent an exponential rise in food insecurity rates as a result of the growing inflation for essential goods. Moreover, the statistics already speak for themselves and it is not something to disagree about just because you are not affected.

Conclusively, it is not the kilometer, job level, or sector that should determine the wages that a worker should receive. After all, it is the bare minimum to give the right and equal wages to Filipinos—something that is unfortunately not yet implemented despite several decades of protests and calls. Indeed, as long as neoliberalism runs the country's economy, interest will remain biased towards those at the top of the triangle. For starters, minimum wages serve as a safety net since it provides a substantial level of security from exploitation. Nevertheless, it falls short of covering such escalating and inevitable bills to date. Enough said, this goes to show how higher costs equate to greater consequences.

Sources:

Department of Labor and Employment. National Wages and Productivity Commission.Retrieved from https://nwpc.dole.gov.ph/regionandwages/national-capital-region/

Land Transportation Franchising and Regulatory Board. Fare Rates.Retrieved from https://ltfrb.gov.ph/?page_id=24

Summers, D. (2021). Editorial cartoon: Inflation. Retrieved from https://www.statesman.com/story/opinion/2021/12/19/editorial-cartoon-dec-19-2021-inflation/8910218002/

Yap, J. (2022). November inflation hits 8%, the highest in 14 years. Retrieved from https:/globaldailymirror.com/Web/full_article/november-inflation-hits-8-highest-in-14-years-27840