The recent crisis in food prices, which has affected thousands of families, has once again underscored the urgent need for the government to strengthen their safety net systems to ensure the rise in the price of basic commodities does not trigger an increase in the poverty rate, since its adverse effects are expected to hurt the poor the most.
Food prices have increased due to fundamental shifts in global supply and demand.
A variety of forces contribute to rising food prices: high energy prices, global political developments, climate change, the COVID 19 pandemic, and supply chain disruptions, among others.
It is noted that food supply has not increased sufficiently at a time when grain reserves are declining, and land and water availability for food production has decreased.
“Oil prices are now being moderated by the US action in opening up its oil reserves, and the lack of unity among the oil producers on how to manage the global supply;” and “The US-China and China-versus-the-world trade conflicts may also trigger price hikes because China is the world’s source of cheap goods.”
In addition, the recovery of many businesses trying to recoup lost incomes and seeking new ways of doing business by increasing prices, which impact on the cost of living, the amount of money needed to cover basic expenses such as housing, food, taxes, and healthcare in a certain place and time period.
The cost of living is often used to compare how expensive it is to live in one city versus another. The cost of living is tied to wages, like living in Manila is more expensive that living in Dumaguete.
IBON said that, amid rising prices of basic commodities, minimum wage earners are suffering from how the Duterte administration has been giving the least number of wage hikes and lowest wage increases of the past six administrations in the post-Marcos era.
The rising cost of living has spurred debate over the minimum wage, and the disparity between the lowest salary allowed by law, and the earnings needed to maintain an adequate cost of living.
Proponents of a hike in wages cite increased worker productivity levels, as inequitably correlated to the minimum hourly rate of pay.
By contrast, opponents of a minimum wage contend that a raise could spur higher consumer prices as employers offset rising labor costs.
Price increases were even worse for the poorest 30 percent of households nationwide, with a 4.3 percent inflation rate.
Greater attention must be given to alleviating widespread economic distress, such as giving subsidies and instituting price controls , amid reports of alleged exploitative pricing by wholesale and retail traders,even amid the pandemic economic shock.
Among others, mandating higher wages while giving tax breaks and wage subsidies to micro, small-and-medium enterprises.
Wage hikes are long overdue, and it is unfair for the working class to always be made to bear the burden of adjustment to the economic crises.
Let’s educate our fellow voters to VOTE WISELY!
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