The Contemporary

Economic Issues
being Faced by the
Filipino
Entrepreneurs
 RENT &
PRICE
STRUCTURE
RENT is the
payment for the
use of land or
buildings belonging
to others.
From the point of
economics, RENT
refers to a payment
made to or for a factor
of production over and
above the amount
expected by its owner.
SAVINGS &
INVESTMENT
SAVINGS and INVESTMENT
SAVINGS AND
INVESTMENT are
necessary to build the
future. Savings is to
investment as food is to
the body nourishment
process.
SAVINGS and INVESTMENT
As food and the
nourishment process
sustain body growth, so do
savings and investment to
the growth of economy’s
productive capacity.
SAVINGS and INVESTMENT
But savings calls for
giving up the present
in order to build up
and, therefore,invest
for a better future.
SAVINGS and INVESTMENT
INVESTMENT is
defined as building up
the capital stock for
more future
production and
consumption.
SAVINGS and INVESTMENT
But the cost of
investment is savings
defined as postponed
consumption at
present.
MINIMUM
WAGE
MINIMUM WAGE

The problem of
inadequate wage is
intertwined with the
problem of
unemployment.
MINIMUM WAGE

Both problems
stem from the
lack of jobs for
our labor force.
MINIMUM WAGE

The increase in labor

demand is not enough
to employ excess
labor, simply because
jobs are not enough.
MINIMUM WAGE
Therefore, wage is more
inadequate and
unemployment rate is
higher as more and more
people cannot find jobs
that have become scarcer.
MINIMUM WAGE
But the relatively
few employers can
exploit many who
badly need jobs all
the more.
MINIMUM WAGE
For this reason, the
government
mandates a
minimum wage to
protect workers.
MINIMUM WAGE
Yet, most wages
are still below the
minimum standard
due to lack of
enforcement.
MINIMUM WAGE
On the other hand, total
enforcement may not be
possible with the millions
of employers the
government has to watch
out for violations.
TAXES
TAXES
We pay taxes for
government to provide
public goods and services
that empower and enable
individuals and institutions
alike to pursue their dreams.
TAXES
Ex.
•Schools, Roads,
Hospitals, Social
services, etc.
•In other words, we pay
taxes for government
to provide a better
place where we can
exercise our freedom
securely, fairly, and
progressively.
•But taxes are yet our
burden even as we
ultimately benefit
from the public goods
and services we get in
return.
•Taxes can also distort
savings, investment,
and consumption as
income earners shift
to substitutes to
avoid the tax burden
The main issue that
hobbles the
government to
maximize tax benefit
while minimizing its
burden is the shortfall
of tax corruption.