Traffic Problems
Why are there traffic jams? People can choose between taking public transportation such as jeepneys, buses, taxis, LRT, and MRT, or using private vehicles. The are two affect this decision: direct cost and opportunity cost. The direct cost is thefare for public tranportation and gas for private vehicles. On the other hand, opportunity cost cannot be measured using monetary value. For example, direct cosy in taking public transportation may be cheaper but can give someone too much hassle since it is hard to tell when he or she can get a ride, what time he or she will arrive at his or her destination, or when it is safe for him or her to travel. Because of these factors most people would prefer to use private vehicles despite higher direct cost.
But it everyone were to use private vehicles, traffic would become a problem. Heavy traffic in cities such as Makati is not only caused by traffic vidations but also by the volume of vehicles on the road and the bathered state of the roads.
Employment Problems
The government has once approved and encouraged the practice of contractualization to invite new entrepreneurs as well as foreign investors.
Contractualization is a practice of emplyment where the capital or business owners hire workers on a labor only Contractual basis five thier contract is subject to renewal on a regular basis.
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