Surviving inflation

By Herbert Vego

LTHOUGH this month of January is almost halfway through, some of us have yet to pay debts incurred last Christmas.

As if that were not bad enough, we also grapple with rising prices of food and other basic commodities.  The new price of cooking gas has gone up to PHP 1,085 per 11kg/cylinder.

A fast-food combo breakfast of rice, egg, corned beef and coffee now costs PHP 181.00.

Inflation shrinks the value of money to the point that the poor could no longer eat three meals a day.

We who are in the “middle class,” to make both ends meet, now buy less of our basic needs – say, a half-kilo of meat instead of the previous one kilo.

Alas, cost-cutting hardly compensates, especially if it means scrimping on food. We could get sick and unable to afford medical expenses anymore. Going into debt would then be unavoidable.

A person deep in debt, however, may resort to illegal but profitable activities. As a Bible verse (1 Timothy 6:10) says, “The love of money is the root of all evil.”

Even merchants who impose higher prices for bigger profit eventually see the erosion of their own gains whenever they buy their own needs at higher prices, too. The money they have deposited in the bank earns too little interest to make up for its devaluation.

The phrase “A penny saved is a penny earned” no longer means what it says.

Admittedly, however, a devalued peso has more value than no peso at all.

The only way to outrace inflation is to earn more, which is an elusive dream for the average Filipino wage earner without a “sideline” or small business.

Those who demand wage increase but don’t get it are doomed to sink poorer.

Let’s take a look at the minimum wage earner making PHP 695/day. If this were his income in the 1980s, he might have lived like a prince. Today, he has to practice minimalism – which is about making conscious choices to own fewer items, prioritize what truly matters, and simplify daily routines.

For example, a businessman reeling from business reversal may compel his children into moving from private to public school to save on tuition.

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 small but export-oriented countries.

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.”

By the way, my only son made it there.

-oOo-

ROOTING FOR ENTRY OF MORE POWER

I HAVE been wondering whether Iloilo 1 Electric Cooperative (ILECO 1) could weather its impending competition with More Electric and Power Corp. (MORE Power) in the municipalities of Alimodian, Cabatuan, Leganes, Leon, Maasin, Pavia, San Miguel and Santa Barbara.

The aforementioned are among the ILECO 1 coverage areas specified by law (RA 11918) to be also energized by MORE Power in accordance with its expanded franchise from Iloilo City to Passi City and 15 Iloilo municipalities.

If passed into law, First District Rep. Janette Garin’s House Bill 6292 would include the municipalities in her turf — Guimbal, Miagao, San Joaquin, Tigbauan, Tubungan Oton, Igbaras – as additional coverage areas for MORE.

I know of many people in those towns who would like to shift to MORE Power if possible.

My guess is that ILECO 1 could not afford to heed Garin’s request to lower its rates by two pesos in exchange for withdrawal of her bill.

Well, wait and see muna tayo before commenting further.