It is especially ironic when the government that is expected
to guard and protect the interest of the public becomes the most important
player in perpetuating deception and false calculus. These last events in
Lebanon beg the question: If the government is not to be trusted then why have
it?
Think, if you will, of a major corporation that sells rice
in 1000 gram containers for 4000LL each. The marketing department of this
corporation decides to maintain the size of the container and its 4000LL but
instead puts only 900 grams of rice in each box. If the boxes are marked
properly then this action will not be illegal although the consumer protection
agencies would wage a campaign against the corporation accusing it of the
intention to deceive the public by camouflaging the price increase of 10% that
the said corporation has stealthily imposed on the unsuspecting public. One can
even imagine calls to boycott such products for the lack of transparency.
Imagine the disappointment when those that are promulgating
such practices are the governmental agencies whose only purpose is to protect
the consumer instead of exploiting her. What makes things even worse is the
unbelievable attempt at using wrong calculus in order to rationalize such
action. Can they be that dumb? Apparently the current Lebanese ministers can be
dumber than dumb and that is a tragedy of unbelievable proportions.
Let us go through a hypothetical example that illustrates
the naiveté of this cabinet officials. Let us assume that the Lebanese populace
consumes every day I million 1000 gram packages of bread. If each of these
packages sells for 1500 LL then the cost for the one million KG of bread would
amount to LL 1.5 billion. The government has decided; in its infinite wisdom;
nay its obtuse thinking, that it would not allow the bakers to increase their
price by 10% or the equivalent of LL150 per 1000 gram package but instead it
forced the bakers to reduce the contents per package to 900 grams and maintain
the price at LL 1500. The “genius” behind this voodoo calculus should be fired
on the spot. Note that the 1 million kg that are to be consumed daily cost
under the old system LL 1.5 billion. When the 900 grams per package is adopted
then the 1 million kg would sell at LL1.66 billion i.e. an increase of LL160
million. Had the government allowed an increase in the traditional package of
1000 grams to be sold at LL1650 then the total expenditures for the 1 million
kg of bread consumed each day would have been LL1.65 billion. So what did the
government accomplish by creating this false crisis and then pretending that
they have acted in the interest of the consumer when in fact they have
attempted to deceive the citizen into thinking that the government was acting
in favour of the common good. The government has simply increased the uncertainty
and the level of anxiety simply to wind up in doing nothing.
Shame on each and
every member of the cabinet for having agreed to play this game of pure deception;
shame on all the MPs who have failed to raise any objection to the above but most of all
shame on a so called free press whose only role is to act on behalf of the
weak, the voiceless and the exploited but obviously has failed miserably in
living up to expectations. This is the perfect example of what is meant by the
adage that one should be careful not to appoint the fox to guard the hen house.
Unfortunately for Lebanon we did just that.
11 comments:
When someone brought this up, the government's spokesperson attributed this to the government wanting to avoid using L.L 150 because of its 'impracticality' , but still your logic stands because the 900gs could have been changed to correspond to the increase demanded.
Mustapha,
The total subsidy amounts to LL 70 per KG and so both the government and the consumer would have been better served had we allowed the bakeries to lift their prices by 100-150 Lebanese Liras.
You know as well that the issue of 'impracticality" is a side issue. Since when has the cabinet worried about whether the measures it takes are practical? A tax /subsidy ought to be fair and let the producers and consumers worry about how to handle it.
The befuddlement is that Lebanese; including media and so called politicians and economists have not criticized and made it a symptom of what ails Lebanese residents!
Sometimes I wonder whether all our worries are for naught. Sorry for the analogy but Lebanese remind me of two examples:
1. Little babies who like to stay in their soiled diapers rather than changed...
2. Pigs who roll in mud and refuse in July and be happy!
Good stuff as usual Gus
danny,
Your analogy is spot on. We complain and complain but when it matters we are the biggest supporters of a broken down system. Go figure.
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