HOTSPOT
Tonyo Cruz
While I guess many Manila Bulletin readers are more fortunate or more affluent, that doesn’t mean that they are immune or unbothered by rising inflation and escalating prices of basic goods. Everyone’s affected especially the upwardly-mobile yet peso-pinching middle class.
Perhaps the top tip nowadays is to forego the more expensive grocery delivery services, and instead go to our neighborhood grocery or palengke to buy fresh and in bulk. This saves a good amount of money.
Opting to buy at our palengke and grocery would also help vendors and local merchants at a time when they need it the most.
Another route is to follow groups such as SUKI, SAKA, KMP and UMA for announcements about “farmers’ markets” where farmers bring their produce directly to city dwellers. I’ve been to such events, and it is good to talk with farmers, interact with them, and buy fresh farm produce from vegetables to rice, fruits to handicrafts.
There are other suggestions on how to stretch the power of the weakening peso, and the purchasing power of the take-home pay of minimum-wage earners.
But we can only do so much individually or even as family units to combat inflation and high prices. Tightening our belts is not enough. This is a national concern that requires a national effort.
Other countries have passed bold measures to help small businesses, the middle class and the working class by protecting services, shielding mortgages, controlling oil prices, and forgiving certain debts. The U.S. for instance released its oil reserves to help stabilize gas prices in America.
We can help propel bold inflation responses by re-uniting around common-sense proposals such as the suspension or removal of VAT and excise taxes on petroleum products. There are also proposals to remove VAT on basic goods.
There are economists who support these proposals that date back to the recent pre-election and election campaign period. All presidential candidates, including the eventual winner, agreed to look into pausing the collection of excise taxes as a quick way of helping consumers. To more than make up for the lost revenue and raise funds for expanded services, the Philippines could adopt a billionaire tax.
We should learn from the lessons from the resignation of British prime minister Liz Truss. She proposed austerity measures for the British public, while at the same time sought to cut taxes on the super wealthy. Her government’s proposals, as contained in the so-called mini-budget, crashed the British pound, roiled the markets, further raised inflation, angered the British public and led to mass cabinet resignations.
There is always a temptation to fall into the trap of conventional wisdom. That is, to blame the public’s non-cooperation for the collapse of the Truss government. But Labor, independents, analysts and commentators correctly point out that it is not the public’s fault. The problem cannot be solved by more doses of trickle-down economics that has been the reason behind social and economic crises in their country.
In our case, it is long overdue for the opposition and other political forces, and for politically-engaged citizens, to move beyond the May 2022 election results. Besides, whoever may have alternatively won would be facing the exact same global and national problems we face now.
Beyond looking after ourselves and our families, we have to find common cause with others to compel the administration to treat inflation and escalating prices as a national concern.
Could we unite to demand that the government stop non-productive and ostentatious expenditures, and instead protect essential public services, provide emergency economic aid, and finally raise salaries of public school teachers and public health workers? I think that’s possible.
Could we demand a swift end to smuggling and flooding of imported agricultural products, and instead compel government to bring bumper crops in the provinces to the cities and towns? Why import onions, garlic and tomatoes to “address shortages”, when there are provinces that report oversupplies or unbought produce in their areas?
Could we seek a moratorium on layoffs and retrenchments of blue-collar workers?
The president campaigned and won on the slogan of unity. Let’s challenge his administration to roll out bold measures to protect the majority from small businesses, the middle class and the working class.
The rest of the world ain’t merely wishing that inflation would go away or solve itself. They’re boldly addressing it, to save their small businesses and peoples. We should do the same too.