Here's another news that skipped me some time ago. It's been reported by Panay News that there are Negros Farmers that demand to stop sugar importation as well as other agricultural products. It was in Bacolod City which is the sugar capital of the Philippines. What's even more stupid is that the groups also asked for SUBSIDY OF PRODUCTION, CHEAP FERTILIZER AND FARM INPUTS, FREE IRRIGATION, SUBSIDIZING MACHINERY AND EQUIPMENT, and marketing support. This is really nothing more than ECONOMIC IGNORANCE. It's pretty much like the demand for the prices of palay to have a price increase while the finished product has a lower price. If the cost of production is going to be higher then the finished product will have to sell higher. Again, it's just plain ECONOMIC IGNORANCE on the part of these NGOs demanding protectionism as well as a government subsidy.
I'm amazed at how often the late Ferdinand E. Marcos Sr. is demonized. What seems to be hardly mentioned is how the Marcos "Golden Years" also subsidized gasoline for lower prices. Subsidy means a sum of money granted by the government to assist an industry or business so prices can remain low or competitive. A subsidy is government spending which leads to an OUTFLOW for the national economy. Requesting for subsidy means asking for government handouts. Marcos' subsidy also helped contribute to the economic downfall of the Philippines. The late Lee Kuan Yew was right to say that they won't see the money back if they loaned it to Marcos Sr.
The idiocy of subsidies
Why are subsidies bad? The Corporate Finance Institute (CFI) mentions the following downsides of the subsidy in the long run. There's the shortage of supply that comes with it. There's the difficulty of measuring success. Eventually, there are higher taxes needed to keep them up. True, there are some advantages such as lowering inflation, preventing the long-term decline of industries, and a greater supply - these are just SHORT TERM. The subsidies would eventually lead to a shortage of supply (eventually), there would be a difficulty of measuring success, and taxes will eventually become a burden. I guess that's why IBON Foundation is against the lowering of tax rates since subsidies must be financed by HIGHER TAXES. These subsidies form a welfare state to which the hardworking public must pay higher taxes to support lazy moochers living on subsidy. Apparently, that's why Marcos also stole billions of pesos so he can support his subsidies. The results of subsidies are long-term damages after the Marcos Years. True, the Marcos Regime has long come to an end, freedom of speech is restored (though frequently threatened by EXCESSIVE LIBEL LAWS), and the unjust declaration of martial law is over. However, the irony that those who hated Marcos Sr. want to have his nonsense subsidy programs back as much as the Marcos Loyalists probably want it!
They would also want FREE IRRIGATION. Please, water doesn't come free since it comes with a lot of machinery. Water companies spend a lot of money treating the water to make sure it's safe for washing and consumption. Water refilling stations spend a lot of money to make sure that the water is safe for the consumer to drink. Yet these unions have the nerve to ask for free irrigation? Irrigation doesn't come in free either. If you've got water - you need to pay the water supplier so they can continue supplying safe water. Free irrigation will further add up to the government expenses. If government expenses get too high then expect inflation. The subsidy can also be a reason why Marcos Sr.'s regime was characterized by HIGH INFLATION and OVERLY HIGH DEBTS along with the ill-gotten wealth.
Why demanding for a cessation of import of agricultural products is SUICIDE
Lee Kuan Yew himself didn't industrialize Singapore into a first world country. Instead, Singapore was a country that accepted world trade. The moment we stop world trade means people will get excessively poor, an excess of apples that nobody wants, and an excess of manpower that nobody wants to use. The third one hits a chord with me saying that excess of manpower nobody wants to use refers to UNEMPLOYMENT. Just imagine what Singapore would be today if Lee Hsien Loong decided to reverse his father's policies that made Singapore great!
World trade is now a reality. Nations are trading with each other. Singapore became a trade center leading to its progress. The Philippines can only become another Singapore by encouraging free-market trade instead of protectionism. That's why Bobong Marcos himself is downright wrong when he said that the Philippines could've become another Singapore under his father's rule. The Marcos Years were close to North Korea and Venezuela with only one channel on air. Imports and exports are all part of the buy and sell process. We sell to gain money and we buy to gain inventory. Imports are often used to bring anything that's not available. Exports are done to gain money to spend for operations. Trading also helps fill in the supply and demand gap.
Agriculture is dictated pretty much by the weather. Countries with winter may want to import agricultural products before the winter strikes if local production can't meet the demand. Japan once didn't want to import rice until the 1990s. Japan's price-conscious consumers turned to FOREIGN RICE and the importation allowed Japan to have a rice supply to meet the demand. I can't imagine if Japan still remained in its stubborn state. The importation of rice in Japan helped bridge the gap between demand for rice and supply for rice in Japan. I don't see anything wrong with importing rice either especially Filipinos are culturally rice eaters. I don't see anything wrong with importing rice from other countries if there's a shortage in the Philippines. Rice vendors can still gain a profit whether they sell rice from Iloilo or rice from Bangkok. All that matters is that they sell quality rice.
Why inflation is high in Venezuela and North Korea is the restriction of imports. I think Venezuela wouldn't be having the problem of people lining up for expensive bread if it allowed imports. The same can go for the Kingdom of North Korea. A shame (really) that President Nicolas Maduro should eat steaks and Emperor Kim Jung Un should enjoy fine meals while their citizens STARVE TO DEATH. The Kim Dynasty had created a dystopia for the people and a utopia for themselves. The Marcoses created a dystopia for the Philippines and a golden age for themselves. It's because the supply and demand gap is so short. Making bread becomes so expensive in these countries because of the overly high supply. Print more money? Well, that's just going to devalue money and lead to further inflation.
My proposed solution is that these idiots should be exiled to North Korea and Venezuela for a start
Since these farmers want protectionism then go to a country that will definitely give it to them. They can all start by applying for migration to either the Kingdom of North Korea or Venezuela. They have their free choice if they would want to serve the Emperor of North Korea or the President of Venezuela. After all, these countries have overly restrictive policies against trade. These countries supposedly believe that national self-industrialization works. These countries supposedly believe that they can do everything themselves.
It would be fun to see these farmers move there. These guys would probably start working for the purely state-owned farms. Those who will move to North Korea so there will be no sugar imports can start planting sugar for Jung Un to make caramel for him and his royal subjects. Those who will move to Venezuela may start working with raising healthy cattle so Maduro can enjoy his steaks while people starve. Though, they can't complain if Jung Un and Maduro will make them work FOR FREE. Yes, they would be SLAVES to these tyrants. Jung Un would probably whip them if the production of sugar for his caramel can't be met. Maduro would probably whip them if they can't feed the cows properly so he can eat premium steaks.
I would want to see these farmers move to either which country. These kinds of people are an obstacle to progress in the Philippines. They're always demanding the impossible. Now, let them taste what real communism is when they work for either the Emperor of North Korea or the President of Venezuela.
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