Inflation, soaring prices making lives 'difficult' for Filipinos

Al Jazeera English

6 Jan 202302:18

Summary

TLDRThe transcript highlights the struggles of Filipinos like Paul De Balthazar, who, due to pandemic restrictions and soaring prices, now earns barely enough for his family's sustenance. With a daily income of six or seven dollars, he can only afford food for two days, excluding luxuries like onions, which are among the world's most expensive. Despite economic growth, high inflation and stagnant wages continue to plague the middle-class and poor, leading to President Ferdinand Marcos Jr acknowledging the rampant inflation. The hope is for economic gains to benefit ordinary citizens.

Takeaways

🚗 Paul De Balthazar, a driver, has seen his income reduced due to pandemic lockdowns and restrictions, limiting his work to only a few journeys a week.
💵 His daily earnings of six or seven dollars are barely sufficient for food, illustrating the financial struggles faced by many during these times.
🍚 A visit to the market reveals the high cost of basic commodities, with a significant portion of his budget spent on rice, chicken, and a few other items for his family of six.
📈 The script highlights the increasing cost of living in the Philippines, with basic commodities like onions reaching around ten dollars a kilogram.
🌐 This situation is described as 'developed nation prices in a developing economy,' indicating the disparity between the cost of living and the average income.
🔝 Inflation in December was at its highest in almost a decade and a half, affecting not just the poor but also the middle class.
📉 Despite oil prices starting to decline, it does not guarantee a decrease in the cost of living, only a slower rate of increase.
🏛️ President Ferdinand Marcos Jr acknowledges the high cost of basic goods and the rampant inflation, alongside the economic recovery.
👨‍👩‍👧‍👦 Paul De Balthazar expresses the hardship of making do with limited resources and the emotional toll of seeing his children suffer due to economic constraints.
🌟 There is a hope that any economic gains will 'trickle down' to ordinary Filipinos, improving their quality of life.

Q & A

What was Paul De Balthazar's occupation before the pandemic?
-Before the pandemic, Paul De Balthazar was a driver making daily trips.
How has the pandemic affected Paul De Balthazar's work?
-The pandemic has limited Paul's work to three or four journeys a week due to restrictions.
How much money does Paul De Balthazar make daily now, and how does it impact his family's food budget?
-Paul now makes six or seven dollars a day, which is barely enough for food for his family of six for two days.
What items did Paul De Balthazar buy at the neighborhood market, and how much of his budget did they consume?
-Paul spent a quarter of his money on rice, another quarter on chicken, and the rest on bananas, vegetables, and a few pieces of sausages and fish.
What is the current situation with the price of onions in the Philippines?
-Onions are among the most expensive in the world, costing around ten dollars a kilogram, which is unaffordable for many Filipinos like Paul De Balthazar.
How has the economy of the Philippines been affected by the pandemic and inflation?
-The economy is growing, but inflation in December was the highest in almost a decade and a half, causing difficulties for many Filipinos.
What is the current state of oil prices, and how does it relate to the cost of living in the Philippines?
-Although oil prices have started declining, it does not mean that prices of goods will decrease; they will just not increase as rapidly.
What is the government's stance on the economic recovery and the high cost of basic goods?
-President Ferdinand Marcos Jr has been promoting economic recovery but also acknowledges the high costs of basic goods and the rampant inflation.
What is the current unemployment rate in the Philippines, and how does it relate to inflation?
-The unemployment rate is quite reasonable considering the situation, but inflation is still a significant issue that is out of control.
What is Paul De Balthazar's hope for the future regarding the economy and his family?
-Paul De Balthazar hopes that any economic gains in the near future will trickle down to ordinary Filipinos, improving their living conditions.

Outlines

00:00

📈 Economic Struggles in the Philippines

The paragraph discusses the financial hardships faced by Filipinos, exemplified by Paul De Balthazar, a driver whose income has been severely impacted by pandemic lockdowns and the resulting economic restrictions. Previously able to support his family with daily work, he is now limited to a few journeys a week, earning barely enough to cover food for two days. The high cost of basic commodities, such as onions priced at around ten dollars a kilogram, is causing distress among both low-income earners and middle-class families. The situation is exacerbated by inflation, which reached its highest point in over a decade and a half in December. Despite economic growth, the rising prices are not expected to decrease significantly, posing a challenge for families with limited incomes. The narrative also touches on the government's acknowledgment of the issue and the hope that economic gains will benefit the general population in the future.

Mindmap

Keywords

💡Pandemic lockdowns

Pandemic lockdowns refer to the restrictive measures implemented by governments to control the spread of infectious diseases, such as COVID-19. These measures often include the closure of non-essential businesses and the enforcement of stay-at-home orders. In the video, lockdowns have significantly impacted Paul De Balthazar's ability to work as a driver, reducing his income and affecting his family's livelihood.

💡Soaring prices

Soaring prices indicate a rapid increase in the cost of goods and services. This term is often used to describe inflationary periods where the general price level of consumer goods and services rises. In the context of the video, soaring prices have made basic commodities unaffordable for many Filipinos, including Paul De Balthazar, who struggles to provide for his family with his reduced income.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. In the video, inflation is highlighted as a significant issue in the Philippines, with December's inflation being the highest in almost a decade and a half, affecting the purchasing power of the population.

💡Basic commodities

Basic commodities are essential goods that people need for their daily lives, such as food, water, and clothing. The video discusses the increasing costs of these commodities, making it difficult for many Filipinos to afford them, which is a central theme illustrating the economic challenges faced by the country.

💡Economic recovery

Economic recovery refers to the period after a recession or economic downturn when an economy begins to grow again. The video mentions President Ferdinand Marcos Jr's promotion of economic recovery, suggesting that while there are positive signs, issues like high inflation and the cost of living remain significant challenges.

💡Unemployment rate

The unemployment rate is the percentage of the total labor force that is unemployed but actively seeking employment. In the video, the unemployment rate in the Philippines is described as 'quite reasonable,' which contrasts with the ongoing issue of high inflation, indicating that while jobs may be available, the cost of living remains a struggle for many.

💡Trickle-down effect

The trickle-down effect is an economic theory that suggests that tax cuts and benefits for the wealthy will eventually benefit those in lower economic brackets. In the video, Paul De Balthazar hopes that any economic gains will 'trickle down' to ordinary Filipinos, implying that he is waiting for the positive effects of economic growth to reach him and his family.

💡Cooking staple

A cooking staple is a food item that is commonly used in cooking and is essential for preparing meals. In the video, onions are mentioned as a cooking staple that has become unaffordable for many due to high prices, which is a stark example of how soaring prices affect the ability of people to provide for their basic needs.

💡Middle-class Filipinos

Middle-class Filipinos refers to the social and economic group in the Philippines that falls between the working class and the wealthy class. The video suggests that even this group is feeling the pinch of high inflation and rising costs, indicating that the economic challenges are widespread and not limited to the poor.

💡Oil prices

Oil prices are the cost of petroleum products, which can significantly influence the prices of goods and services due to their role in transportation and production. The video notes that although oil prices have started declining, it does not guarantee a decrease in the overall cost of living, as other factors continue to drive up prices.

💡Budget constraint

A budget constraint refers to the limitation on spending due to a fixed amount of money available. In the video, Paul De Balthazar's daily budget of less than six dollars is a clear example of a budget constraint, which forces him to make difficult choices on what to buy for his family's sustenance.

Highlights

Pandemic lockdowns and soaring prices have severely impacted Paul De Balthazar's ability to provide for his family.

Before the pandemic, Paul made daily trips as a driver, but restrictions now limit him to three or four journeys a week.

Paul now makes only six or seven dollars a day, which is barely enough for food.

Life has become difficult for Paul with a daily budget of less than six dollars.

A quarter of Paul's money is spent on rice, another quarter on chicken, and the rest on other basic food items for his family of six.

The food budget is only sufficient for two days for Paul's family.

Inflation in the Philippines has led to high prices for basic commodities, even for developed nations.

Onions, a cooking staple, are among the most expensive in the world at around ten dollars a kilogram.

Middle-class Filipinos are also struggling with the high cost of living.

Inflation in December was the highest in almost a decade and a half.

Even with declining oil prices, the cost of living is not expected to decrease significantly.

President Ferdinand Marcus Jr acknowledges the high costs of basic goods despite economic recovery.

Inflation is running rampant and out of control, affecting the daily lives of Filipinos.

Paul De Balthazar has no choice but to make do with what he has, despite the hardships.

Paul hates seeing his children suffer and hopes for economic gains to benefit ordinary Filipinos.

The report highlights the economic challenges faced by Filipinos, including high inflation and the cost of living.