HOTSPOT
Tonyo Cruz
Going to the public market or supermarket in the past few months and weeks is a sure way to have heartaches and headaches. Less people are using the big carts. We’re not really buying less stuff. We can no longer afford to buy more, even if we wanted to. Our money costs less compared to before.
Unsurprisingly, some supermarkets have started to replace loud or happy tunes with calming piped-in music. It is a small nod to the stress of their customers.
What is worrisome is the situation of how many minimum wage earners, those who earn less or are under-employed. How about the unemployed? How do they all manage to get by? Do they still eat three square meals a day? Or are they skipping meals altogether?
The conventional wisdom that one only needs to be hardworking to get by is no longer true. Delivery riders, shipping and logistics staff, and transport service network drivers have tried 24-hour shifts and more, but they can’t catch up with the escalating costs of living.
A Facebook post about one such delivery rider went viral for what I think was for the wrong reasons. Most people said they admired the rider’s tenacity. But what they failed to see is that the rider is grossly underpaid, and without the social protections they should be entitled to as productive members of society.
In the pandemic era, we have included them among frontliners, because quarantines and work-from-home won’t happen without their important service. It is one thing to say we salute them. But that’s an empty sentiment. What riders like him deserve, lawfully and legally, are emergency economic aid, pay adjustments and social protection.
OFWs have to work even harder, if that is possible, because their family expenses here at home are rising. That the dollar may fetch more pesos has given way to the reality that it now takes more pesos to sustain our import-dependent economy. More dollars and even more pesos are needed to import rice, basic goods and consumer products.
The previous administration prioritized military-police operations, infrastructure and debt servicing over everything that’s important. Many felt that quarantine levels were prematurely lowered and then repeatedly modified not because overall public health was improving. But it was more about the demands of industry, and remove any basis for the government to provide people and their small and medium-scale enterprises with emergency economic aid.
It is quite tragic that the new administration is wasting its huge political capital by not boldly confronting inflation and rising costs of living. In other countries, a President who won more votes than all rivals combined, and winning in the capital and all regions (except for two), would be using such a mandate to deliver bold reforms and drastic steps to save the public from runaway prices.
The President also enjoys the support of super majorities in both houses of Congress.
What can the President do?
First, the President could convene a special session of Congress to suspend or abolish VAT and excise taxes on petroleum products. That would immediately lower prices of oil and basic goods.
Second, the President could order the immediate improvement of logistics and transportation of agricultural products, like rice and vegetables, from the provinces to the cities. No farm products should rot anywhere in the country especially when prices are escalating.
Third, price controls, rent control, suspension of payments of SMEs loans, and more tax breaks for SMEs. These will help consumers and entrepreneurs.
Fourth, the President could immediately transmit to Congress a supplemental budget for a new round of ayuda to all citizens. Everyone’s affected by rising inflation and prices, and so everyone should get some help from the state.
Fifth, to make up for these expenditures and lost revenues that economic managers would complain about, the President could abolish agencies such as NTF-ELCAC, redirect the billions in confidential and intelligence funds and enact a billionaire tax. These can be done with the consent of Congress dominated by his allies and supporters.
There are many other economists that the President could consult, to challenge the austerity measures of his economic team.
Worldwide, inflation is the top priority of governments. Citizens reject the excuse that Ukraine is to blame for the oil price spikes. We should reject it as well. The reason we have a government, elect officials, and pay taxes is precisely for a time like this. The government must act.
Tonyo Cruz
Going to the public market or supermarket in the past few months and weeks is a sure way to have heartaches and headaches. Less people are using the big carts. We’re not really buying less stuff. We can no longer afford to buy more, even if we wanted to. Our money costs less compared to before.
Unsurprisingly, some supermarkets have started to replace loud or happy tunes with calming piped-in music. It is a small nod to the stress of their customers.
What is worrisome is the situation of how many minimum wage earners, those who earn less or are under-employed. How about the unemployed? How do they all manage to get by? Do they still eat three square meals a day? Or are they skipping meals altogether?
The conventional wisdom that one only needs to be hardworking to get by is no longer true. Delivery riders, shipping and logistics staff, and transport service network drivers have tried 24-hour shifts and more, but they can’t catch up with the escalating costs of living.
A Facebook post about one such delivery rider went viral for what I think was for the wrong reasons. Most people said they admired the rider’s tenacity. But what they failed to see is that the rider is grossly underpaid, and without the social protections they should be entitled to as productive members of society.
In the pandemic era, we have included them among frontliners, because quarantines and work-from-home won’t happen without their important service. It is one thing to say we salute them. But that’s an empty sentiment. What riders like him deserve, lawfully and legally, are emergency economic aid, pay adjustments and social protection.
OFWs have to work even harder, if that is possible, because their family expenses here at home are rising. That the dollar may fetch more pesos has given way to the reality that it now takes more pesos to sustain our import-dependent economy. More dollars and even more pesos are needed to import rice, basic goods and consumer products.
The previous administration prioritized military-police operations, infrastructure and debt servicing over everything that’s important. Many felt that quarantine levels were prematurely lowered and then repeatedly modified not because overall public health was improving. But it was more about the demands of industry, and remove any basis for the government to provide people and their small and medium-scale enterprises with emergency economic aid.
It is quite tragic that the new administration is wasting its huge political capital by not boldly confronting inflation and rising costs of living. In other countries, a President who won more votes than all rivals combined, and winning in the capital and all regions (except for two), would be using such a mandate to deliver bold reforms and drastic steps to save the public from runaway prices.
The President also enjoys the support of super majorities in both houses of Congress.
What can the President do?
First, the President could convene a special session of Congress to suspend or abolish VAT and excise taxes on petroleum products. That would immediately lower prices of oil and basic goods.
Second, the President could order the immediate improvement of logistics and transportation of agricultural products, like rice and vegetables, from the provinces to the cities. No farm products should rot anywhere in the country especially when prices are escalating.
Third, price controls, rent control, suspension of payments of SMEs loans, and more tax breaks for SMEs. These will help consumers and entrepreneurs.
Fourth, the President could immediately transmit to Congress a supplemental budget for a new round of ayuda to all citizens. Everyone’s affected by rising inflation and prices, and so everyone should get some help from the state.
Fifth, to make up for these expenditures and lost revenues that economic managers would complain about, the President could abolish agencies such as NTF-ELCAC, redirect the billions in confidential and intelligence funds and enact a billionaire tax. These can be done with the consent of Congress dominated by his allies and supporters.
There are many other economists that the President could consult, to challenge the austerity measures of his economic team.
Worldwide, inflation is the top priority of governments. Citizens reject the excuse that Ukraine is to blame for the oil price spikes. We should reject it as well. The reason we have a government, elect officials, and pay taxes is precisely for a time like this. The government must act.