Saturday, October 12, 2019

The Invisible Hand and the Bleeding Hearts

I attended a two-day seminar on the Philippine Competition Act last week and during the Q&A portion, someone asked the Philippine Competition Commission chair about his earlier statement that the rice tariffication law* was a good example of competition at play. He was asked if he really believed that, considering the hardships that our local farmers were now experiencing with the lowering of palay prices. 

I don't remember if the commissioner answered, but one of the speakers, an economist from the US Federal Trade Commission, replied that the rice tariffication law was indeed ultimately good for the consumers because it would give them the lowest price for the best goods. She emphasized that all the players would be forced to compete at optimum level making the consumer benefit and have a higher purchasing power.