Why politics falls into the short-termism trap

THE PROPOSED P200 across-the-board wage hike is now effectively dead.

- By Jam Magdaleno

The House and Senate failed to reconcile their respective versions before Congress adjourned sine die. As far as legislative prospects go, the bill is unlikely to be revived. But its defeat in Congress belies its political utility. After all, it served its purpose: to reframe the administration's post-election narrative and offer a short-term populist balm after a punishing electoral result.

The 2025 midterm elections dealt a blow to the administration, with its Alyansa Para sa Bagong Pilipinas slate winning only six of 12 Senate seats, below initial expectations. The "DuterTen" coalition of Vice-President Sara Duterte and former President Rodrigo Duterte secured five seats, led by top vote-getters Bong Go and Bato dela Rosa. Opposition figures also broke through, with Bam Aquino and Kiko Pangilinan placing second and fifth. Key upsets in strategic areas like Makati and Cebu, where independents and opposition-backed candidates triumphed, reflect growing public discontent with the administration.

Still, despite this erosion of popularity, the administration continues to enjoy strong support in the Lower House. It's not difficult, then, to see why the idea of a wage hike was floated: as a signal of responsiveness to the plight of the working class, a gesture aimed at regaining the sympathies of future voters and perhaps currying favor with left-leaning parties and organizations.

The problem, however, is that the proposal was doomed from the start. A national wage hike fails on two counts: economic feasibility and political viability.

As I previously wrote here, a P200 wage hike would be counterproductive to the progress the Philippines has made in curbing inflation (currently at 1.3%). It would trigger inflationary pressure and severely impact micro, small, and medium enterprises (MSMEs), as well as the informal and semiformal sectors, which comprise the majority of Philippine businesses.