Republic Health Bill
Reaction to Population, Poverty and the Reproductive Health Bill by Gerardo P. Sicat
Yes, mathematically, increasing population decreases per capita income. But if GDP or GNP growth rate increases faster than population growth, wouldn’t it increase per capita income? We can be misled by the simple arithmetic that this formula implies. Low per capita income does not necessarily mean it is due to an increase in population growth. In fact, population growth is necessary for economic growth. As stated by Dr. Abola and Dr. Villegas, in their book Economics an Introduction, “Development is for man. Yet man is also the agent for development”. An increase in factor inputs, such as labor, also increases supply which may lead to an increase in national output.
Given this premise, with the Philippines having a high rate of population growth, why is it that it has low per capita income? According to Dr. Abola and Dr. Villegas, “Man is the ultimate resource. But in order to be truly one, he has to be employed”. With labor surplus, Philippine economic policies need to direct these resources, generate employment and employ more labor. It is in this act that high population can be used to stimulate productivity, increase income, and improve welfare.
Among others, policies affecting foreign exchange rate, savings, and investment should also be taken to consideration. Policies on these variables could affect national income positively.
High population growth rate is not the main culprit for low per capita income. It is the country’s inability to utilize its resources which hinders it from generating high income. It is through the adoption of appropriate economic policies that productivity, economic growth and development, and welfare can be improved. Due to these things, aside from the political turmoil caused by the RH bill, controlling population growth is not the best option to improve per capita income.
Population,
Yes, mathematically, increasing population decreases per capita income. But if GDP or GNP growth rate increases faster than population growth, wouldn’t it increase per capita income? We can be misled by the simple arithmetic that this formula implies. Low per capita income does not necessarily mean it is due to an increase in population growth. In fact, population growth is necessary for economic growth. As stated by Dr. Abola and Dr. Villegas, in their book Economics an Introduction, “Development is for man. Yet man is also the agent for development”. An increase in factor inputs, such as labor, also increases supply which may lead to an increase in national output.
Given this premise, with the Philippines having a high rate of population growth, why is it that it has low per capita income? According to Dr. Abola and Dr. Villegas, “Man is the ultimate resource. But in order to be truly one, he has to be employed”. With labor surplus, Philippine economic policies need to direct these resources, generate employment and employ more labor. It is in this act that high population can be used to stimulate productivity, increase income, and improve welfare.
Among others, policies affecting foreign exchange rate, savings, and investment should also be taken to consideration. Policies on these variables could affect national income positively.
High population growth rate is not the main culprit for low per capita income. It is the country’s inability to utilize its resources which hinders it from generating high income. It is through the adoption of appropriate economic policies that productivity, economic growth and development, and welfare can be improved. Due to these things, aside from the political turmoil caused by the RH bill, controlling population growth is not the best option to improve per capita income.
Population,