A Tale of (at least) Two Economies

In recent days, my family has been able to save a comfortable amount of money, not much but enough for us to be noticed by banks and enough not to be afraid that if we approach a stockbroker, we don't have to be afraid of being spurned for not having enough.

While I have graduate training in economics, it was only when we were able to generate some savings that economics became personal. Exchange rates became relevant as we had to decide when the right time to buy/ sell dollars was. Saving our money in checking accounts didn't make sense as inflation losses started to become noticeable. Then stocks became a possibility.

Things like foreign exchange rates, inflation and interest rates became personal. Even things like fiscal deficits and US slowdowns/ recessions began to matter insofar as they affect foreign exchange rates, inflation rates and interest rates which in turn affects our money.

This is not to say that foreign exchange rates, inflation rates and interest rates are not relevant to those without savings. It is just that a family that does not have a comfortable amount of savings is primarily concerned with earning enough to meet expenses and foreign exchange, inflation and interest rates are exogenous to their decision-making algorithms rather than something to be played with.

In fact, on that level, especially among those who face difficulties earning basic needs, other things become relevant. 5/6, paluwagan, sanglaan, guarantors, palista sa sari-sari store, things which would not be relevant for those with substantial savings. For these people, 26% poverty incidence is not just a statistic, it's personal.

In this sense then, we can talk of (at least) two economies. The economy of those with substantial savings and the economy of those without substantial savings.

When PGMA says the economy is doing well, she's (probably) not lying. It's just that what she is referring to is the economy of those with substantial savings. Fiscal deficits have been reduced which reduced pressure on inflation and interest rates. Inflation has been tamed, by and large. The stock market recently reached record highs. These things and the creation of a stable economic environment make the Philippines more conducive for those with substantial savings.

The rest of the economy, however, is not that vibrant and beyond window displays, there really has been nothing substantial done for those without substantial savings. In fact, the poverty incidence increased from 24+% to 26+% at the same time that the economy was enjoying 6 years of uninterrupted growth. This goes to show that when the economy of those with substantial savings improves, it does not necessarily translate into the improvement of the economy of those without substantial savings. In fact, in this case, the situation of those without substantial savings has deteriorated.

So when we say that PGMA is good for the economy, we need to be clear what economy we are referring to.

Events

I do not know if it is just a function of media society but I have a feeling that organizational identity is increasingly identified not in terms of their functions but in terms of their events. This is not to say that organizations that are restricted to their functions do not have any identity. It is just that organizations that are restricted to their functions are increasingly considered second-class organizations (or mere bureaucracies).

When is something an event? I think it is when people outside the organization can get involved in the activity. There is a dynamic interaction between the organization and the people in its environment.

More than that, the people in the environment must know of (or have the means of knowing about) the event. It must be communicated, otherwise, no matter how terrific the activity, it is a non-event. Where I work, something becomes an event when there is an email blast to all employees about the activity and/or there are posters (although this is becoming less popular) and/or written invitations (which seems to denote something more formal), and/or tarps strewn all over campus (which denotes an event of some significance).

Organizations in the age of events must learn the language of events if they want to be recognized as having positive trajectories (something which is highly prized in modern society).