Price hike, happiness and suffering – Tay Tian Yan

The government launched the price reduction campaign on the first day of March, hoping to reduce prices by 10-20%.

On that day, I went to a restaurant in Petaling Jaya which specialises in Price hike, happiness and suffering – Tay Tian Yan. It is frequently visited by diners of various races, and photos showing well-known people dining there are hung on its walls.

When I reached the restaurant, it was already filled with customers and finally, I found a vacant table.

Food printed on the menu looked just as the same, but with higher prices. Prices have been increased by 10-20%.

It was particularly irony when I thought of the campaign. I could not help but make a bitter smile.

Could the prices be reduced?

The crowded restaurant has given me the answer.

If the restaurant owner raises the prices again by 20%, I believe many people will still return and dine there.

How can we blame the restaurant owner as everyone walks in willingly? Moreover, its food is quite tasty and compared to those that does not taste good but charge high prices, the restaurant can be considered quite decent.

It is actually strange as everyone is criticising the price hike but many are still willing to pay. Also, some people raise prices of their goods while criticising.

In fact, it is the real side of the market economy. There are also entanglements of morality and interests.

On the surface, many traders have violated morality and raised prices for their own interests and that is what consumers are criticising.

It reminds me of the famous utilitarianism by British philosopher and economist Jeremy Bentham when I was studying the concept of classical economics.

The scholar who spent his whole life studying "happiness" established an important argument.

He advocated utilitarianism that was opposed by the general public. He combined personal interests and interests of others to form collective social interests.

He stressed that people pursue their own interests and thus, create their own happiness. It is a rational and unchangeable choice.

If everyone follows a particular order, without violating morality and law, they can then transform personal interests into public interest, and drive happiness in the society.

Price hike by traders is based on greed and it is also a kind of greed when employees ask for increment.

When everyone possesses that greed without violating law and morality, and instead enhance productivity, it could then drive market economy and create more wealth.

Although prices are hiked along the process, it is actually one of the driving forces of economic growth.

If economic grows and incomes are increased, price hikes are actually a good thing.

It would be bad if prices are not increased, as it might mean deflation.

A bowl of ramen in Japan cost you 700-800 yen 10 years ago and the price is still around that rate today.

It is the suffering of the Japanese today. People are not willing to spend, traders dare not to raise prices and economy does not grow. The quality of life is not enhanced, but declined.

When prices are not able to increase, everyone suffers.

The economy of Malaysia is still growing and the employment rate is still high. These are basic causes of price hikes.

It is not necessarily a bad thing, provided that the economic growth's benefits are greater than the price hikes, letting happiness covers the pain.

Of course, if prices rise too high, causing runaway prices and eventually triggering inflation, it would be a failure of the market economy. It will definitely be a bad thing if it brings greater pain than happiness.

Perhaps, instead of inflation, the widening wealth gap is currently a more crucial problem in Malaysia.

When the rich spend and speculate excessively, it causes rapid price hikes for goods and housing while the poor have to cope with soaring prices even if they live frugally.

The demand for set meals costing more than RM1,000 in Chinese restaurants during Chinese New Year was extremely high while many families could not afford even the basic festive goods.

The gap is our sorrow, as well as a potential crisis. – mysinchew.com