The Economics of COVID-19 part 3/3

The ideas held by many, the government  must do more. We elect them do the minimum wage, tax the rich, because that benefits the poor. Legislate more through manipulation of the employment  act, employment  insurance  schemes-  are all myths.

Myths, I might add are like an air mattress. They are comfortable for many purposes until  they  get deflated. Then you get a jolt.

When things go bad there's always a shift from reliance  of individual  responsibility to collective responsibility. From  self-reliance  to depending  on big brother  and ward keeper.

I doubt  very much taxing the rich will benefit  the poor. What we feel is different  from reality. Let me illustrate.

Take for example politics.who dominate the sphere? Hardly the poor. The very rich may have a few reps but the bulk is from  the middle income group.

The poor are on  the side lines. They are  there in the first place because the have lesser talent, lesser entrepreneurial skills  are unfortunate  to be born handicap or are in groups discriminated against.

From the very rich I could get money, so it's worthwhile to sacrifice  a few seats from the middle income group.  What can I get from the lower income group?
I may feel empathy for them, but the reality is what it is.  The middle income looks after their  own.

So if they look after their interests can we rely on  big brother? I submit, no.

The very  poor may get crumbs  but the middle income get the meat.

There is no good relying on big brother. It only gives them an excuse to impose their bureaucracy  and cause havoc through  their ubiquitous  corruption.

I used to think why Malays remain poor despite Malays dominating  government  instrument  from ketua kampungs to kings? Big brother doesn't help. But that's part of the answer.
The other part is to give big brother an excuse  to become little Napoleons  and impose corruption!

If Everyman were allowed  to pursue their  own interest the good of society is furthered. Adam Smith said that. A long time ago.

But we cannot trust the free market. The free marketeers are profit driven. They are rapacious  people.  So trust the government.
I have  shown what trusting big brother entails to.

So what to do? First of course  existing  facilities  must be managed better. Health facilities rubbish disposal  clean water supply electricity  etc.

Development policies must be skewed towards rural areas. Don't focus on workers only.  The café latte socialists  and Gucci  communists  talked about them. They are hardly the poor. The poor are in the kampungs.

Bank Negara must tell commercial banks to provide cheap loans to kampung people.  Lower interest  loans must be provided to kampung people.  Commercial banks should establish coffee shop bank branches in kampungs.

Housing loans should  be provided at zero interests. Applicants  consisting of  women should be encouraged.

Facilities at pasar malam should be upgraded. Build permanent premises with rubbish collection facilities  and cold room facilities.

Direct income transfers should  be made to the very poor. These are the miskin tegar who are worse off than the organised workers who are defended by well-intentioned do-gooders.