A group of economists cautions the Philippine government against populist measures like fuel subsidies saying that it can distort the market forces and cause more harm into the economy. The group says that leaving market forces on its own will eventually work towards the advantage of the economy.
While I agree with the textbook approach being advocated by the group, I beg to disagree with them just a little bit. The Philippine economy has a very high incidence of corruption and giving too much public money to the government in form of taxes will simply expose a lot of cash to corrupt officials. I believe that minimizing the taxes being paid by the people will result to a more equal distribution and spending and it will lead to more jobs and a better economy. Giving the government too much money will only result to a lot of money being hoarded overseas.
Never forget the Ligot, Garcia and Arroyo stash that were all alleged to have been spirited out of the country.