BY VIRTUE of the power of Facebook, many Filipinos have become instant economists. Perspectives here and there flooded. All trying to figure out the implication of the 6.4 percent inflation rate. Malacañang believes that the figure is “not ridiculously high.”
One netizen, apparently a die-hard supporter of the administration, posted the inflation rate trend since 1960. Apparently, he was trying to convince people that the recent inflation rate is not alarming.
The logic is something like this: the inflation rate in 1971 was 21.4, and in 1991 it was 18.7, so what’s new?
This kind of argument however misses the whole point. We just don’t analyze the economy by comparing numbers. Economic indicators should not be interpreted like scores in a basketball game. They are to be understood and interpreted within the context of current government policies and the prevailing socio-political climate of the country.
Precisely there is a reason for our discomfort. Prices are not just generally increasing. Behind this are a number of internal and external factors. Among others, we can mention political stability, investor confidence, safety, peace and order, improved foreign relations, and functional governance in the local level.
Figures are important but only and insofar as they approximate the reality. The 6.4 inflation rate of August 2018 should not be judged as better compared to the 21.4 of 1971. We don’t need to recall what happened in 1971. But just to make us more informed a little bit, the 70s were turbulent years. It was a period of political unrest. Thus, the logical question should rather be: what are the factors that brought us to this comparatively high inflation rate from 2.9 in 2017, which was also an increase from the much 1.8, in 2016?
There is one more important point which should not be missed. Inflation is not the only economic issue. Our bigger concern is the whole economy. Economists J. Stiglitz, A. Sen, and J-P Fitoussi warned us of the danger of “mis-measuring our lives.” Traditional economic measures should not “determine” our interpretation of well-being.
The traditional measures are important but they are basically limited. Policy-making cannot just be made on the basis of two-digit numbers. Precisely, it is necessary to also know in great detail “subjective well-being,” people’s “capabilities”, and the extent of “fair allocation.” Translated into more specific and concrete measures, quality life means improved health services, accessible “quality” education, expansion of people’s social connections, political voice and governance, and human rights (cf. Stiglitz et al).
We are not fools and idiots. Let’s not insist that all of human development can and should only be spelled out in terms of figures. At the end of the day, it is the quality of life that would make us say that quantitative data are valid as they make sense.
Let us be honest. The debates in social media center on the claim that the Philippines is better under the Duterte administration. The supporters of the president are like bees swarming to his defense. For them, the issue of inflation rate is a political propaganda of the dilawan. It should not be considered as an indicator that our situation is getting worse.
Confronted with this kind of twisted mentality, we need to raise the level not only of our topic but also our seriousness and honesty. Really, is the country getting better in our transportation, peace and order, and public services (e.g. hospitals and schools)? Are people eating quality food? Is there, at least, gradual decline in labor export? Are we seeing OFWs coming home because genuinely it is more fun in the Philippines? Can we continue living our lives without salary increase?