Econvergence - Essay Writing

EduKASYA: ARISE despite A RISE
Poverty has a cascading effect on the economy, causing greater misery. The ability
to afford nourishing food and adequate shelter is critical for one to survive. It stands to reason
that poverty rates are connected to economic health as opportunities for employment and
income growth increase as the economy expands (Grunewald, 2006). Thus, stronger job
markets and greater income levels tend to assist poor families in moving over the poverty
line. A minimum wage rise would provide employees with a long-overdue raise at a critical
juncture in the economic recovery, bringing millions of families out of poverty and improving
the economy.
Poverty-stricken families play an important role in demonstrating the weakened effect

of macroeconomic factors on poverty rates. The bare essentials for an individual’s survival
include paying for basic physiological requirements including food and nutrition,
transportation, and housing. However, many who are less fortunate do not have appropriate
access to the necessities, which is why raising the minimum wage might significantly help
with this issue. Senator Kennedy (1999) argued in support of minimum wage increases by
saying that “no one who works for a living should live in poverty.” According to Gindling
2018, a convincing justification for raising the legal minimum wage is that doing so will
lessen poverty. Ideally put into theory: if wage growth is sufficient, impoverished people’s
wages will improve, pulling them out of poverty.
The informal sector is often substantial in developing nations, and poverty tends to be
more pervasive there since it is not properly covered by minimum wage laws. An interview
from The Philippine Star, Almendras, who is the president of Philip Morris Fortune Tobacco
Corporation’s labor union said, “The petition to increase the minimum wage stems from the
need of employees to recover the lost value of their salaries, cope with the rising cost of
living and afford a dignified life as a common worker”. The demand of these employees
comes from their desire to reclaim living costs; therefore, they plead for higher wages
because an increased minimum wage means enough budget allocation for each family.
Hence, although the minimum wage is high, it is still right enough for the budget.
Social transfers given by the government and civil organizations provide the
following services in order for us to demand support for the poor’s purchasing power in order
to drive economic growth and improve household welfare: The 4P’s by The Department of
Social Welfare and Development (DSWD) and TUPAD by The Department of Labor and
Employment (DOLE). The Pantawid Pamilyang Pilipino Program, also known as the 4P’s, is
a social protection program that focuses on human capital development by providing cash
grants to eligible poor households in exchange for compliance with education and health
conditions. With that being said, consumption by different households can be supported by
the provision of substantial cash assistance. In accordance with the TUPAD program’s
official website, Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers
(TUPAD), is a community-based package of assistance that provides emergency employment
for displaced, underemployed, and seasonal workers for a minimum of 10 days and a
maximum of 30 days, depending on the nature of the work to be performed. Conforming to
Hulog 2019, in order for the program to be possible, DOLE and its "Tulong Panghanapbuhay
sa Ating Disadvantaged/Displaced" workers program (TUPAD) proposed sourcing money
from the DSWD’s Pantawid Pamilyang Pilipino Program (4P's). These social transfers help in
the increase of family budget.
The Manila Times reports each social beneficiary has been astonishingly effective in
achieving what it's designed to do, enabling thousands of the country's poorest families to
gain stability and climb the economic ladder. As the country prepares to adjust to a new
typical work environment, informal sector employees will likely profit from this emergency
employment initiative. The programs offer both social help and social development. As a
result, TUPAD's program includes social community projects to assist in repairing,
maintaining, and improving common public facilities and infrastructure, including schools.
Increasing the budget for children's education promotes economic growth and
improves household welfare since education provides the economy with tertiary public
returns in the form of educated individuals earning more, paying higher taxes over a lifetime,
and costing their governments less in terms of social entitlements and welfare (Stefaner &
Baur, 2022). Considering the diminishing levels of education aid and the requirement for
sustainability, governments will need to mobilize domestic sources to create more cash for
education. Numerous individuals have the ability to increase their percentage of the education
budget, for example, by transferring public funds from other sectors if they are employed in a
way that disproportionately favors the affluent and causes economic distortions (Al-Samarrai
and Benveniste, 2021). The Department of Education (DepEd) will have to advocate for
education among other national priorities knowing that it can benefit other policies for
socioeconomic development. However, the weight of education in the national budget is
ultimately the result of a decision-making process reflecting the priorities of the government
(UNESCO and IIEP-UNESCO, 2012).
Higher salaries and ample monetary support for households have critical implications
on economic activity in demand-side economics since poverty continues to have a more
widespread influence on families in terms of consumption. The discussion on the relationship
between poverty and the economy and how increased minimum wages stimulate the poor's
purchasing power to spur economic growth and improve household welfare helps us
understand the poor's purchasing power to spur economic growth and improve household
welfare. Increased minimum salaries allow families to organize their budgets. The finest
economic recovery would be predicting what would happen next with a minimum wage hike,
an improving economy, and families emerging from poverty.

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EduKASYA: ARISE despite A RISE

Poverty-stricken families play an important role in demonstrating the weakened effect

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