To celebrate the third installment of 'Stupid 2010 elections,' we are featuring not once, not twice, but three potential 'presidentiables.' Let's begin!
Partymate senators Chiz Escudero and Loren Legarda both appear to be running for president next year. It's also possible that one of them will yield and run as vice-president. It is so appropriate for them to unite against bad elements in the government who have been overpricing rice, or something.
Now we all hate the government. We think it's inefficient, or at the very least, more inefficient than what rich and poor would have come by on their own. But to Chiz and Loren, the problem is the specific act of overpricing rice imports. Drat. How unjust is that? The funds could have been used for more than one inefficient government program. The NFA should be more mindful and spread out the wasting of taxpayers' money!
As a bonus, the two are promoting domestic rice production, or so-called 'self-sufficiency.' This nationalistic posturing would push the growth of these industries regardless of what would provide citizens with the best and cheapest products. We just HAVE to have our farmers plant rice, for the simple reason that it's a staple food. It is no matter that these farmers, whom we have taken for granted to be farmers for life, could have had a greater advantage in some other profession. It is also no matter that importation of rice has become the most viable option because of the condition of the domestic food industry, which has been subsidized for the longest time, for the worse.
Of course, by no means do we condone NFA's rice importation program. There is a reason why even some government officials have been calling for some sort of privatization of rice importation (Hint: private enterprise actually works). We have to take this further: Leave it to individuals, without government 'assistance,' to decide on domestic production or importation.
***
Next, Madame Gloria is chided for delaying the implementation of drug price control, in connection with the 2008 'Cheaper Medicines Act.' I've dealt with this law before, although my views have altered somewhat to reject the concept of intellectual property altogether. But for now, we're only dealing with the issue of price control.
As a slight aside, one of the worst presidents in United States history is number 37, Richard Nixon. No, not for Watergate, as abhorrent as that is. What distinguishes him from the rest of the notorious crop is, number one, his complete divorcing of the dollar from gold, which contributed to the greatest inflation of the world's money supply in history, culminating for now in this economic mess, and number two, his imposition of PRICE CONTROL on oil, a program known by his advisers to fail even before its implementation. Needless to say, although I'll say it anyway, it failed.
Our public officials should know better. Imposition of a maximum price below a market price means life-saving and life-enhancing drugs will get in the hands of the public sooner... and never come back again. Price ceilings lead to shortages, whether this is manifest by a pullout of firms or by an inability of producers and retailers to keep up with demand, or maybe the production only of substandard drugs. And if the government seeks to ration medicines so as to retain supply, this still does not recompense firms so as to provide future supply. An attempt at subsidizing these firms would remove the advantage of a capitalistic system, that is, optimal and efficient production.
Don't get us wrong. Drugs ARE overpriced. Partly because of the intellectual property system, and partly because of all these useless government regulations that prevent doctors and customers from patronizing drugs and drug firms as they see fit. I'm talking about the BFAD, not to mention the DoH, SEC, Customs, the BIR and what have you.
If there are such clandestine meetings between the President and drug firms, as claimed, wherein favors are granted through palakasan, this is a sign of what our 'capitalistic' system really is - a state with its cronies posing as private enterprise. But it's not just in the Philippines. Such connivance is no different from Halliburton's sponsorship of the Iraq war.
But if high monopolistic prices are a mere symptom, why focus on the symptom - which only leads to more problems and their corresponding symptoms - and not the root cause (government)?
If we want a better drug industry and overall better health care for Filipinos, a start would be reduction of red tape, and the emergence of private certifiers of quality. Then there's the need for more reforms of the intellectual property system, so that the big guys could no longer rely on their political pull to stay on top.
Price control is trash. The saving grace of cronyism, which doesn't really save it actually, is that it has kept other destructive policies at bay.
Come back soon for more of... 'Stupid 2010 elections'!
Partymate senators Chiz Escudero and Loren Legarda both appear to be running for president next year. It's also possible that one of them will yield and run as vice-president. It is so appropriate for them to unite against bad elements in the government who have been overpricing rice, or something.
Now we all hate the government. We think it's inefficient, or at the very least, more inefficient than what rich and poor would have come by on their own. But to Chiz and Loren, the problem is the specific act of overpricing rice imports. Drat. How unjust is that? The funds could have been used for more than one inefficient government program. The NFA should be more mindful and spread out the wasting of taxpayers' money!
As a bonus, the two are promoting domestic rice production, or so-called 'self-sufficiency.' This nationalistic posturing would push the growth of these industries regardless of what would provide citizens with the best and cheapest products. We just HAVE to have our farmers plant rice, for the simple reason that it's a staple food. It is no matter that these farmers, whom we have taken for granted to be farmers for life, could have had a greater advantage in some other profession. It is also no matter that importation of rice has become the most viable option because of the condition of the domestic food industry, which has been subsidized for the longest time, for the worse.
Of course, by no means do we condone NFA's rice importation program. There is a reason why even some government officials have been calling for some sort of privatization of rice importation (Hint: private enterprise actually works). We have to take this further: Leave it to individuals, without government 'assistance,' to decide on domestic production or importation.
***
Next, Madame Gloria is chided for delaying the implementation of drug price control, in connection with the 2008 'Cheaper Medicines Act.' I've dealt with this law before, although my views have altered somewhat to reject the concept of intellectual property altogether. But for now, we're only dealing with the issue of price control.
As a slight aside, one of the worst presidents in United States history is number 37, Richard Nixon. No, not for Watergate, as abhorrent as that is. What distinguishes him from the rest of the notorious crop is, number one, his complete divorcing of the dollar from gold, which contributed to the greatest inflation of the world's money supply in history, culminating for now in this economic mess, and number two, his imposition of PRICE CONTROL on oil, a program known by his advisers to fail even before its implementation. Needless to say, although I'll say it anyway, it failed.
Our public officials should know better. Imposition of a maximum price below a market price means life-saving and life-enhancing drugs will get in the hands of the public sooner... and never come back again. Price ceilings lead to shortages, whether this is manifest by a pullout of firms or by an inability of producers and retailers to keep up with demand, or maybe the production only of substandard drugs. And if the government seeks to ration medicines so as to retain supply, this still does not recompense firms so as to provide future supply. An attempt at subsidizing these firms would remove the advantage of a capitalistic system, that is, optimal and efficient production.
Don't get us wrong. Drugs ARE overpriced. Partly because of the intellectual property system, and partly because of all these useless government regulations that prevent doctors and customers from patronizing drugs and drug firms as they see fit. I'm talking about the BFAD, not to mention the DoH, SEC, Customs, the BIR and what have you.
If there are such clandestine meetings between the President and drug firms, as claimed, wherein favors are granted through palakasan, this is a sign of what our 'capitalistic' system really is - a state with its cronies posing as private enterprise. But it's not just in the Philippines. Such connivance is no different from Halliburton's sponsorship of the Iraq war.
But if high monopolistic prices are a mere symptom, why focus on the symptom - which only leads to more problems and their corresponding symptoms - and not the root cause (government)?
If we want a better drug industry and overall better health care for Filipinos, a start would be reduction of red tape, and the emergence of private certifiers of quality. Then there's the need for more reforms of the intellectual property system, so that the big guys could no longer rely on their political pull to stay on top.
Price control is trash. The saving grace of cronyism, which doesn't really save it actually, is that it has kept other destructive policies at bay.
Come back soon for more of... 'Stupid 2010 elections'!
