President GMA holds the fort steady on the EVAT. Plus.
Her spokesman rules out oil subsidies. Plus.
Her cabinet is preparing a request for emergency powers, for fuel conservation and rationing measures - a big fat MINUS. What, this from an economist?
From your basic economics you would learn that if any conservation is to be implemented, the most efficient way to do it is by the price system. So - the price of oil goes up; consumers and businesses economize on it. Period.
Government impositions to conserve fuel for the private sector, are blunt instruments of rationing at best, and impose countless hidden costs (besides being themselves costly to implement and monitor). Rescheduled working hours? Restrictions on power usage? Actual rationing of fuel? I'd rather take the adjustment from the market rather than the clumsy bludgeoning of the government. Even if it is headed by an economist.
No, change that - especially if it is headed by an economist.