Second BR1M? DANGEROUS to use economic means to solve political woes

In recent years, we have greeted hello and goodbye to various governmental plans named with letters. To be honest, those who were confused will remain confused and for those who were not confused, will still have no way to know about the results of the plans.

There is one exception, however. Namely the 1Malaysia People's Aid (BR1M).

If you have not heard about the BR1M aid, at least you know about the RM500 aid, right?

Most households with a monthly income of RM3,000 or below have received the RM500 aid last time. The feeling was so real when holding the money in hands. It was much more gratifying than just hearing about those plans named with letters.

Of course, the gratification to the government was also more real.

However, in view of the lack of the country's statistical capacity, many households earning more than RM3,000 monthly have also enjoyed the RM500 aid.

Haven't you heard that? Some people dressed in fine shirts went to collect the RM500 aid by their Mercedes sedans without even feeling embarrassed. To them, it is a government distributed money, then why shouldn't they take it?

The government would not mind, after all, as long as they feel gratitude to the government.

Therefore, even Deputy Prime Minister Tan Sri Muhyiddin Yassin has bluntly said that the people would not thank the government for what it has done but they would, after receiving the aid.

Since it is effective, and the general election would not, or could not, be held so soon, they are now considering for a second BR1M aid payment to make the total aid become RM1,000 for each household, so that the people's gratitude to the government would be deeper.

Wait, there is a doubt here. Is the move of distributing the RM500 aid meant to make the people feel gratitude? Is it just meant to gain votes?

Unfortunately, they are the answers, at least for the government.

Foreign governments also distribute aids, even though the names are different. Some called it consumption voucher, and some called it people's bonus.

However, they are not meant to make people feel thankful. For example, the Japanese government did so to encourage consumption and revitalise the market, while the Taiwan government did so to stimulate the economy to avoid recession.

The BN aid distributions involve a great amount of money. The first aid payment alone had involved more than RM2 billion. Another round of payment could top the amount to over RM4 billion.

However, the government does not even bother to show a financial statement.

And the move is meant to gain thank-you-votes instead of to serve economic purposes.

The problem is, is it right to do so? Could they really do so?

It lacks legitimacy in Economics and it lacks ethics in Political Science.

Malaysia has been having a fiscal deficit for 15 consecutive years. In other words, we spent more than we earned and have to borrow money to meet expenses.

Today, the country's total debt is RM360 billion, equivalent to RM13,000 of liabilities for each citizen, or over RM60,000 for each household.

From the financial management point of view, the government should think of ways to revive the economy, increase revenue and reduce spending, instead of directly distribute money to the people.

Political issues should be handled through political means, instead of economic measures. To seek for the people's support, they should convince them with policy, instead of giving them money.

-Sin Chew Daily