Thursday, May 10, 2018

Dutertenomics, GDP growth and inflation

Duterte and his Dutertenomists are deceptive. #TRAIN law alone has siphoned off more money from private pockets to government pockets esp the high oil tax, coal tax (round 1), sugar tax, etc. More tax revenues, more govt spending (13.8% growth) allowed higher Q1 2018 GDP growth of 6.8%. But look at household consumption, slowed down to 5.6%. And Dutertenomists are silent about the need to raise fares -- jeepney, taxi, UV express, buses, truckers, etc. Those fare hikes should be granted and see the impact on household consumption, impact on #inflation.

And now this, $71/barrel, another oil price hike. And January 2019 is near, oil tax hike, coal tax hike Part 2 will be slam dunked upon us. #DOF #NEDA #DBM #BSP

If Dutertenomists, DOF and its NGO front Action for Economic Reforms (AER) are very vocal and noisy about the need to raise oil taxes, they should be equally vocal and noisy to grant the fare hikes too, so that entrepreneurs in the land transport business (jeeps, taxi, UV express, buses, etc.) can pass on the cost of their advocacy. But they are silent. Hoping to reduce the damage of high oil taxes to inflation and household spending.

The decline in household spending would have been steeper and bigger if the estimated 100,000 mainland Chinese gamblers/workers new migrants were not here?
Chinese Money Triggers a Dizzying Rally in Manila Property
Bloomberg News
May 4, 2018, 12:00 AM GMT+8

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