WE HAVE in Bacolod a case of government bailouts of losing businesses.
Recently, the city’s three public markets and the Manokan Country appealed to the City Council to immediately enact the ordinance condoning the surcharges, interests, penalties and arrearages on the rental obligations of stall, table and block occupants of the markets. Our honorable councilors Caesar Distrito Em Ang, El Cid Familiaran, Al Victor Espino, Roberto Rojas, Dindo Ramos, Mona Dia Jardin and Cárlos José López drafted the ordinance. Judging from the news, the proposed ordinance will help market vendors to pay their rental arrears and dues to the local taxpayers. How exactly the ordinance will help those on the losing end of the competition escapes me, however. Let’s dig deeper on the issue. According to the neoliberal concept—which most of the country’s economists promote—to develop the economy, the priority should be the price mechanism, the free enterprise, the system of competition, and a strong, unobtrusive, and impartial state. Those who can’t compete with more efficient, better-funded competition should be allowed to collapse and go bankrupt. I can sense, however, that the Council’s proposition to condone the arrears could be based more on political rather than the economic or even on the ideological side of things. After all, elections are just around the corner and the proposed ordinance could just be efforts to win votes. Look at the logic. How on earth can vendors fend off losses due to stiff competition from big malls and supermarkets, the proliferation of sidewalk vendors and the high prices of gasoline and other commodities? Swim with the big players—or sink. In fact, even if they religiously pay their rentals to the city government on a staggered basis, free from interests, surcharges and arrearages, I can’t see how they can develop their competitive edge. How can our middle-class consumers benefit from the bailout ordinance in terms of better services and variety of quality goods, of clean and hygienic stalls? How can our vendors help with ecological solid waste management by lessening the use of single end use plastics or the promotion of organic food? In the United States, the Barack Obama administration agreed to bail out with $34 billion the three major U.S. auto industry companies — GM, Chrysler and Ford—who requested taxpayers money to fend off bankruptcy. The Big 3 argued that their exit from the economic scene would trigger 3 million layoffs within a year, plunging the economy further into recession. Opposing the Obama’s bailout were the largely Republican politicians—largely on ideological grounds—who insisted that the markets will solve all the ills of the world without government regulations or intervention. Their argument was to allow GM to sink as the sacrificial lamb, go bankrupt rather than be assisted with the taxpayers’ money, while other automakers would gobble up GM’s lost business and market share. And all would be well with the world without costing the taxpayer a cent. According to the Center for Automotive Research, however, General Motors managed to swim back to safety in the public markets. CAR estimates that the US national government needs to recover $38 billion on the taxpayer bailouts can be achieved after a two-year breakeven. In exchange for the lifeline, the bailed-out companies promised to fast-track the development of energy-efficient vehicles, and consolidate operations. GM and Ford agreed to streamline the number of brands they produced. Union will help save jobs by allowing delay contributions to a health trust fund for retirees and reduce payments to laid-off workers. The three CEOs agreed to work for $1 a year and sell their corporate jets. Do we get similar assurances from our Bacolod vendors? What can they offer our taxpayers and consumers in return to avoid making the ordinance look like a free ride on the gravy train, benefiting our local politicians and the losers at taxpayers’ expense? Benedicto Q Sánchez Sun Star Bacolod
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