Chasing headline disasters

Chasing headline disasters | Daily Tribune

Resolute action is sorely lacking; instead, quick fixes such as one-shot subsidies are handed out. The recent suspension of the public utility fare hike sums up the reactive responses.

Jeepney drivers are clearly in need of immediate assistance, as diesel prices have skyrocketed, but economic managers warned that a fare increase would push the inflation rate beyond five percent, which would affect the President’s sliding survey ratings.

Disregarding the finding of his own transport agency that said the fare increase was necessary, Marcos ordered its suspension, saying that commuters would suffer.

The public is now suffering from being stranded on the streets, as most jeepneys have refused to operate.

Another survey found the majority of respondents calling for President Ferdinand Marcos Jr. to have a direct hand in controlling prices, which he just did.

A bigger problem is looming, however, which is overseas Filipino workers (OFWs) returning home in droves as the bombings in the Middle East intensify.

Threatened are an estimated two million Filipinos working in different nations in the region. They are major contributors with some $3 billion in remittances monthly.

Independent economists are pushing for more targeted responses, such as the Pantawid Pamilyang Pilipino Program, which is regulated, meaning public funds will go mostly to those who need it most.

Targeted responses, thus, maximize the use of limited government resources.

They also limit the amounts that could be exploited for patronage and kickbacks, which makes alternative shotgun cash doleouts through ayuda programs like the Assistance to Individuals in Crisis Situation, Tulong Panghanapbuhay sa Ating Disadvantaged Workers and the Ayuda sa Kapos ang Kita Program preferable for the opportunists in government.

Responses now should be targeted toward an extended crisis, particularly if fuel supplies dry up.

Thus, government intervention becomes key to alleviating the people’s ordeal from the turbulence, since it is in its hands to prime the economy.

Consumer spending is the main driver of the economy. If people have purchasing power, they can keep groceries and other small businesses earning.

It behooves the Marcos administration to exercise leadership, such as by persuading the oil companies that have been carting away profits from their local operations for years to moderate their gains.

The Big 3 — Shell, Chevron and Petron — purchase fuel in bulk, usually covering 30 to 60 days.

Thus, basing prices on prevailing factors means they are raking in money while the entire nation suffers.

This is where government intervention is crucial to ensure that fuel is sold at its fair market value based on acquisition cost to prevent excessive price hikes.

Hard decisions, such as suspending the fuel taxes and revising the deregulation law that would return some of the lost authority of the government over the vital industry, must be taken.

Thus far, the Marcos administration’s response to the spreading crisis has been woeful and is causing more anxiety than reassurance to Filipinos about their future.