Doling out subsidy

We are once again on the brink of losing it all, economically. The prices of rice continue to soar despite a price ceiling implemented by the Palace. For those in position, they think it is feasible to save everyone from spending too much on a staple. However, for those in the grassroots, it is just very much difficult to implement. As stated in my previous column, suppliers are selling out their stocks with prices higher than the ceiling. The best recourse is to hoard them for a time until the cap is lifted.

The economic hurdle is not just with rice but even with fuel. Key players are rising their prices weekly, making it difficult for those in the transport sector to keep up. The solution is supposedly to also increase the collection of the current fare. However, it is also not feasible with the process that it needs to go through such as several hearings with all sectors. It has to go through a rigorous approval process and an implementation phase that would likely take forever.

The current solution of the national government is to dole out money to “subsidize” the rising prices. It is an attempt to meet halfway on what was usually spent. It sounds so ideal and very gracious but it questions the integrity of every beneficiary. This brings me back to the days of the pandemic when the government also gave out money for those who lost their jobs. Most of my neighbors in the nearby community instead bought objects other than the necessities. We saw a lot of them with new haircuts, new items and more. The timing might just be perfect.

The doling out of money to individuals is a band-aid solution to the system. What we need is an overhaul of our taxes and pricing. Do we really need a tariff for imported rice? Is excise tax necessary for fuel and other oil prices? Economists would know how to balance out how basic commodities should be sold. The ordinary Filipino keeps on clamoring for more because it is unfair.

What makes it all unfair is the fact that the taxes paid on these products doesn’t reflect the current life that we live in. The rich and those in power hold more money than the people who placed them in power. The power of being in a democracy is all in the mind, a concept that remains to be a mere discussion.

While we are still a week into the implementation of the price ceiling for rice, those involved in this sector should act quickly to mitigate the situation. It might be very late that it would result in shortage and hoarding. The same goes for oil. If those in power really love their country, then the people should come first in their priorities. It is necessary to hear their voices and what they have to say. These discussions are not only important during the polls, but in the everyday life that we live.