THIS is a sequel to our previous column, where we tackled monetary inflation as the culprit behind the erosion of the wage earner‘s buying power. This new month of October kicks off the “ber” months leading to the supposedly merry Christmas season. The last quarter of the year, however, is also the season of rising prices of food – imagine the Christmas ham – and gift items due to rising public demand.
Ironically, we pinch pennies in the last-quarter months. To make both ends meet, we buy less of our basic needs – making do with a half-kilo meat instead of one-kilo. The “sacrifice” is a prelude to splurges on Christmas Eve, Christmas day and the New Year.
Unfortunately, even the greedy merchants who trigger higher prices eventually see the erosion of their own gains when buying their own needs at higher prices, too. Sooner or later, whatever money they have saved in the bank sheds off value as interest on it falls behind galloping inflation.
The merchants try to recover by pushing prices higher and beyond the capacity of the poor. Indeed, “the love of money is the root of all evil” (1 Timothy 6:10).
Unfortunately, personal “austerity” can only get you so far. Cost-cutting does not really compensate, especially if it’s a forced move aimed at eating three budget meals a day. While you can cut and slash expenses to the bone to conserve your bottom peso, the fact remains that you could get sick and be unable to afford mandatory medicine anymore. Going into debt would then be unavoidable.
The only way to keep pace with inflation is to earn more, which is an elusive dream as far as the average wage earner is concerned.
Of course, we know of friends who have gone into “sideline” or a little business just to make both ends meet.
Those who demand wage increase but don’t get it are doomed to suffer further stress and depression.
Let’s take a look at the wage earner making P10,000 or less per month. If this were your income in the 1980s, your family would be well-fed. Today, because of inflation, you would have to endure a Spartan existence – no internet, no TV, no ref, no phone – to have a roof over your head, to feed your children, to keep them clothed and send them to school.
When my kumpare Eli – who used to send his children to the Ateneo – suffered business reversal, he literally begged of them to transfer to a public college in exchange for bigger daily allowance. Otherwise, they would have to sell precious possessions.
In certain instances, increasing income at the expense of the poor doesn’t really solve but aggravate the problem. Consider the granted demand of jeepney operators and drivers for a two-peso hike in minimum fare. The operators would surely impose higher “boundary” on drivers; and passengers would “retaliate” either by taking lesser number of jeepney rides or by buying a motorcycle for “unli” rides.
When laborers ask for wage hike across the board, their employers would have to hike prices of their products or services – which further fuels inflation. The better alternative would be to stimulate demand by keeping prices low and thus produce more products. With more products selling like hotcakes, both the producer and the consumers benefit. This is the “secret” behind the success of export-oriented China.
Working abroad for better pay is an option for Filipinos who no longer see the “future” in the local job market. As the song New York, New York says, “If you can make it there, you’ll make it anywhere.” (hvego31@gmail.com/PN)
