Conversation with idealogue is next to impossible

It is more fun criticizing

Conversing with ideologue, ie those with progressive ideas is next to impossible.  Like the labor groups and jeepney drivers who still want the excise taxes to be removed from fuel prices.  While this will help alleviate the  situation for many of our citizens,  this fails to understand the explanation of the economic managers that this will put the govt finances into more strain, what with high level all ready of P12 trillion of debt.

The  Train law which enacted the excise taxes granted tax exemptions to wage earners of P250,000 annually, quite a huge amount and removal of large tax base for income tax.   And WT

How could they not get it, despite most getting the P6,500 fuel subsidy and P200 ayuda for every family increased to P500.  Take note today the prices of diesel plunged by P12.50 and for gasoline by P5.00

Many still think that the oil firms are responsible for oil price hike.  The oil producers the sheik, OPEC raise oil prices, not oil firms nor the govt.     We need more understanding from our citizens.  

It does not look that reason is at work here but anti thesis if not greed.  

Nations will not go to war, " Dell Theory of Conflict Prevention at the book "The World is Flat

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In the book of Tom Friedman "The World is Flat" there is a mention that countries being part of intricate supply chain relationship and interconnected economies will not go to war.  This is known as "Dell Theory of Conflict prevention" Thus Chinas war of words with Taiwan, India vs Pakistan are nothing more  than posturing and/or saber rattling."

https://en.wikipedia.org/wiki/The_World_Is_Flat

But Russia risked it all and went to war with Ukraine thus facing many economic sanctions and other difficulties and narrowly escaping defaults with financial markets.

Government caught in a bind on excise taxes and ayuda, better understanding of budget items and sources of funds

It is more fun criticizing

In yesterday's meeting one can sense the difficulty of govt economic managers with regards to the removal of excise tax to mitigate the unrestricted increase in price of oil products. 

1.    It cant let go of the excise tax since under the train law, the tax exemptions of wage earners were increased to P250,000 each.  The loss has to be replaced by excise taxes.

The excise taxes take care of the Build build program including the  salaries of government employees

2.  The government has to be liquid because its debt stock went up to nearly P12 trillion.  Many of the govt deficit spending are financed by both local and foreign borrowings

3.  Many speeches by know it all congressmen and other sages speak of P25B unspent budget ..  These are unspent budget items and they are not funded?   How do we source the  budget items. The budget items and the  source of funds are entirely different animals.   And yet we cry over unrestricted huge govt borrowings?

4.  The P200 per family subsidy/ayuda is looked upon as very small. Truly.  They are merely ayuda.  It is still the wage earners who have to earn for the upkeep of his family.   The mentality that is going around is that the govt is huge pipe where all of the ayuda comes from, forgetting that the  taxpayers like us sweat blood sweat and tears to pay the taxes that  make the govt go around.  And many speak easily of the endless ayuda that has to be funded  by debt

5. This goes hand in hand with the wage increases And all ready many socialist thinking politicians are proposing P500.00 per day living wage increase.   Good luck God bless to us.  We hope that the bulk of businesses can fund this

Dominguez nixes excise taxes removal; proposes P200.00 /month subsidy to each family instead

Fare increase being reined by LTFRB

It is more fun criticizing

Various sides have been heard regarding fare increases.   NEDA is against is as this will trigger a new round of inflation.  Fare increase triggers wage increase and price of goods  (As of now those affected by trucking fare increase have unilaterally increased their prices)

     This noon some discussion were seen at CNN by a jeepney drivers association

     1.  That the P6,500 is not enough and will just be returned to the oil companies

     2.  Oil companies (an old leftist line) are gouging our people  (But oil price increase come from the

          oil traders and producers like OPEC)

    3.  That the take home income of drivers have been reduced (Because they included food expenses of the drivers (maybe with barkada.  What should prevent them from including their alak expenses later on

May be a computation a simulation of how many paying passengers on the average, the fuel consumption must be detailed.   

   4.  That the  sad state of the revenue vs expenses will force many drivers to shift to other jobs and force them to stop 

    It is noteworthy that only jeep drivers would be the only ones affected (the more vocal) groups but not buses or vans, or TVNs

    One wonders if the statement of the official of the jeepney drivers group is to be believed

So various options:

   1.  P1.00 fare increase

   2.  P5.00 fare increase

   3.  P6,500 assistance to the jeepney drivers

Minimum wage or living wage

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The rising prices wakens the  giant of wage increases.   But raising wages raises a vicious cycle of increase of prices that fuels more inflation and  is self defeating.

Minimum wage  is not equal to living wage.   Husband and wife may be working together or they can economize or hustle for more income

We get various proposals like P200 per day, and some quarters being discussed at CNN at this hour is about  P500.00 per day.  That may be possible for government who depend on taxes may be able to afford this. But SMEs who can are just recovering  and who constitute the bulk of employers can ill afford this.

(by Rep. Raymond Mendoza)

This is a difficult problem to handle