Covid cash

The Covid-19 pandemic has wreaked havoc on the global economy and no nation has been spared. Of course, some countries have seen more damage than others. The manipulated news would say that all you have to look at is the decline in the GDP over the past two quarters, but that is not a valid measure.

You read headlines like this: “World Bank: Covid-19 to Add as Many as 150 Million Extreme Poor by 2021.” The moment you read “as many as,” you know that it is a guess and even “educated guesses” are just speculation. Then “Eight out of 10 ‘new poor’ will be in middle-income countries.”

Here again is that “low-middle income” or “upper-middle income” or both? The Philippines is number 5 on the list of the lower-middle-income group with a GNI (gross national income) per capita at $3,850. But also in that group is Kyrgyzstan with a $1,240 per capita GNI. And then there is Malaysia in the “uppermiddle income” at $11,200.

Nonetheless, nations including the Philippines have given money to the citizens to help them get through the pandemic. While funds that the Philippine government has borrowed are well within manageable debt limits, we also would prefer not to see much more loans taken out.

The US has sent money to virtually everyone. “The CARES Act provides for Economic Impact Payments to American households of up to $1,200 per adult for individuals whose income was less than $99,000 (or $198,000 for joint filers) and $500 per child under 17 years old—or up to $3,400 for a family of four.”

In nations where a few billion dollars is a huge amount of the national treasury even with more debt added, charitable groups have come to the table. World Vision, for example, distributed P15 million to 15,000 of the poorest Filipinos.

However, we know that governments have been forced (or forced themselves) to curtail normally expected citizens rights under the banner of controlling the disease and saving lives. Yet, it comes down to the government saying, “You can leave your house when we tell you to leave.” That is honestly a frightening situation. The arbitrary nature of the restrictions in many countries has been challenged in the courts and has been struck down as unconstitutional. At least we do have some safeguards from that sort of “oppression.”

But what happens when government offers “free cash”? Who in their right mind would find that “oppressive”?

The people have very little if any control over taxation policy and the borrowing practices of government. We have even less control over spending. It is noted that some governments—especially local—in the west are using the pandemic to implement some sort of guaranteed income and not just for the poor.

Expressed in many variations by a large assortment of people is the idea that “a government big enough to give you everything you want is a government big enough to take away everything that you have.” “Free stuff” is never free. Further, the excuse now is that financial assistance must continue as long as there is any threat from the pandemic.

Ronald Reagan said: “The nine most terrifying words in the English language are: I’m from the government, and I’m here to help.”