A crucial time for balancing act

In the midst of the global economic recession that spares no country – despite GMA’s feigned optimism for the RP not yet overrun but then also hinting a P300 B stimulus fund – any practical frugality and wise-spending should be the top priority.

And the government and its public officials ought to spearhead in containing any wasteful spending and avoiding any program that entails unwise and unnecessary funds wastage.

Okay, let’s cotton to the wisdom of the Keynesian theory that in times of recession, instead of penny-pinching and saving, money has to be thrown from whatever sources to stir and jump-start the moribund economy and financial system, to counter the meltdown. And utilize the resources to combat unemployment, bailout and stimulate banking and credit facilities downtrend, to perk up manufacturing slowdown, pump prime the industrial and agricultural paralysis, spur commerce and trade, etc. to a renewed and reinvigorated economic activities, until the financial system shall have implacably normalized. American economy whiz Mark Zandi who now has the ears of Washington and Wall Street, conforms to British economist John Maynard Keynes.

Per CNN Network, in the London Summit 2009 of the G-20 leading countries, its host and summit spokesman, England’s Prime Minister Gordon Brown, was gung ho in spearheading bailouts and stimulus funding and “to do whatever is necessary” to prime move the economic global crisis. Except for the European Union led by France and Germany which are lukewarm in flooding the fiscal system with bloated stimulus funds, other G-20 members could be also gung ho as Brown who foresees as high as $5 trillion in stimulus or spur funds worldwide.

Incidentally, stats experts project that $1 trillion piled in $100 bills reaches a stack of, hold your breath, 789 miles. So, $5 trillion equals 789 miles times 5, that is, so mind-boggling in mathematical reckoning.

To non-economic doyens, it appears like immunizing a person with germs of certain diseases as necessary for his immune system, to serve as defense mechanism or antidote against outside infection or infiltration of the same disease. That seems to be the ultimate philosophy of the bailout/fiscal infusion and the succeeding stimulus funds.

In the United States, however, to President Barack Obama’s chagrin and pique, from the first half of the $700 B bailout of the banking system and housing mortgage security holders, particularly the American Insurance Group (AIG) who got $180 B share, some $165 M went to the pockets of the CEOs and other corporate nabobs as their conscienceless bonus and perks.

In the Philippines, while the fallback of global recession has begun its toll by the retrenchment of workers, and some badges of economic downslide, the government hasn’t adopted any similar bailouts. GMA, however, has hinted, to repeat, of possible P300 B stimulus fund when it becomes necessary.

But what gets the goat of the Filipinos is that despite the adverse effects of global recession fallout being now felt, there is that very untimely and jarring move in legislative circle to bubble the number of Lower House members from 250 up to 350, and to double their salaries and those of the Senators from P48,915.00 to P91,000 a month. Complicating the numbers game, the Supreme Court just lately ruled for additional 32 so-called “marginalized” neo-elites of the party-list to the Lower House, thanks to a skewed fundamental law of the land.

Bukidnon Congressman Teofisto Guingona III spilled the beans recently that the proposed pay raise is made in Joint Resolution 24 for both chambers to pass. Decrying that the comparatively low salaries of the government lower bureaucracy have first to be attended to, Congress should not fatten their pay first. Senator Pangilinan who is now smarting from blame of law enforcers for his ignominious law on minor offenders being exempt from criminal liability, had also assailed the Joint Resolution 24 as too expensive.

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