tag:blogger.com,1999:blog-37045477.post4567726113282766926..comments2023-10-15T21:42:27.426+08:00Comments on Philosophy Politics Economics: Whose "opium" to cut?Unknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-37045477.post-40664776258044007152011-05-19T13:30:36.037+08:002011-05-19T13:30:36.037+08:00The opium Najib is referring to ,is the opium the ...The opium Najib is referring to ,is the opium the poor people is taking and not the opium the big boys at the corporate level. And who are these big boys ? Need I say anymore.najib manaukaunoreply@blogger.comtag:blogger.com,1999:blog-37045477.post-90107111092560027092011-05-19T12:04:21.721+08:002011-05-19T12:04:21.721+08:00I think someone should explain that inflation is b...I think someone should explain that inflation is basically a tax on the poor because the poor gets affected by inflation disporportionate as a percentage of income.<br /><br />Removal of direct subsidy is basically a removal of direct tax break for the poor. Conversely a removal of subsidy to corporate is a removal of tax break to the corporation. It may increase prices ultimately but it should have a less impact given the corporates are taxed first.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-37045477.post-86592636308231089052011-05-18T23:43:14.898+08:002011-05-18T23:43:14.898+08:00on the side note. I agree to Najib's Opium ana...on the side note. I agree to Najib's Opium analogy (Although why did he particularly picked Opium out of so many harmful drugs is still a mystery)... but I disagree how he is proposing to throw the economy into Drug Rehabilitation Center and have it wash with cold waters. I don't think it's very healthy for the foreign investments' prospect as well as domestic well being.Matthewhttps://www.blogger.com/profile/13641871139131138651noreply@blogger.comtag:blogger.com,1999:blog-37045477.post-6013691338810365842011-05-18T23:39:28.545+08:002011-05-18T23:39:28.545+08:00Agree. Subsidies are harmful and are the true dist...Agree. Subsidies are harmful and are the true distortion to the economy's mechanism. Imposing a minimum wage would be a good idea, but bare in mind that it would cause an increase in the already high current inflation rate, especially food basket. We would need a more subtle policy or rather, an adequate model than just increasing multitude's nominal income. Sad to say, I have yet able to see any model or solution capable to withhold the Subsidies-Alleviation's aftermath.Matthewhttps://www.blogger.com/profile/13641871139131138651noreply@blogger.com