Beggar economics

By J R Ruaya

A few days ago, my curiousity was piqued by a queue in a place when there should not have any. Each of those on the queue was carrying a sheet of paper.

No, it couldn't be for NFA rice as there was no outlet around. Neither was it for mega-lotto, for the outlet was two blocks away towards a separate direction.

I followed the snake trail which directly led to a Land Bank branch.

It was for the P500 lifeline subsidy for electricity consumers recently announced by the government. It is a one-time shot, according to government spokespersons, aimed to instantly lower the electricity bills of lifeline consumers, or those who use less than 100 kWh of electricity in a month.

All told, it would cost the government some P 2-billion -- for what? Earning a few pogi points amidst the deafening clamor for lower electricity prices?

You and I, who are paying religiously our electricity bills are shouldering the costs. It is in your bill, the lifeline subsidy which is twice over another subsidy called missionary electrification program. These are on top of another subsidy in a sense, the systems losses, because it also includes the cost of pilfered electricity which is not really insignificant.

When the EPIRA (electric power industry reform act) was passed, most of the cross subsidies have been eliminated, except for this so-called lifeline subsidy.

Mendicant economics

This policy is a blatant example of misplaced priorities practiced by our governments since time immemorial. If the masses are hungry, give them crumbs; they will temporarily quiet down.

This is mendicant economics.

It is no different than giving a few coins to beggars who knock at your car windows at a busy intersection. When it occurs to me, I always agonize whether to fork over some coins or not. The instant need is there; you can see it in their faces, in the young two- or three-year-old children these mothers are carrying as a prop to their trade.

But then, every time your heart melts, you are pushing them some more into the quagmire of poverty. You are encouraging them to risk their lives and limbs for crumbs. They will be back tomorrow, because you showed them that begging can be lucrative. It beats hands down than finding a legitimate job.

Why don't you just donate to your favorite charity or volunteer for work with the DSWD?

Giving the lifeline subsidy is just that.

If one is really serious in helping these lifeline consumers, might as well give them two pieces of 9-W compact fluorescent lamps (CFLs)* at only approximately half the cost to replace their 50 W incandescent lamps.

The savings in electricity bills would go a long way.
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* see post "Goodbye, Edison", June 16, 2008.