Profiteers masked by a free-market system

 

To keep profiteers in check, the government had to intervene in the market to control the prices of face masks.

AS THE nation celebrates its 52 years of independence on Monday, we pride ourselves on our democratic way of life and freedom of thought, which some countries around the world are still fighting hard for.

We feel fortunate to live in a country that embraces the principles of democracy and a market economy, which operates on the basis that the market is most efficient when it is allowed to work freely, where common sense prevails, and people know what's right and wrong when they wheel and deal.

Of course, this is easy to believe in an ideal world.

In reality, the free-market ideology brings about new forms of exploitation.

Let's face the truth: the free-market system breeds greed, as shown by the recent manipulation of sugar and face/surgical mask prices and supplies.

Reports of a sugar shortage surfaced in states like Penang, Perlis, Kelantan, Kedah and Sabah early this month.

Hoarding of sugar by traders and smuggling to Thailand were said to be the main cause of the shortage, which in turn led to the escalation of prices of the commodity.

While we may cry foul over this manipulation, one can argue that this is the natural result of the free market at work. Low supply and high demand equal higher prices.

What can we do to rectify this situation? Stop buying sugar, and sugar prices will fall.

Similarly, the same doctrine applies to the sale of face masks, which are now in great demand due to the rising number of influenza A(H1N1) cases.

Low supply and high demand equal higher prices. Logical? Yes. Acceptable? No.

In this case, I think the profiteering manufacturers and/or suppliers ought to be prosecuted for wanting to reap benefits at the expense of people's health.

Their profiteering is not only in poor taste, but also illustrates their greed and lack of ethics just to earn a few fast bucks. This is shameful.

We are not talking about a common flu or a rich man's disease like gout which is treatable, but a pandemic disease that has killed 71 people in Malaysia (as at August 26), and counting. This disease is non-discriminatory; anybody can get it.

These profiteers know that face masks can help reduce the transmission, and people are strongly encouraged to wear them. So, obviously, demand will increase, but it does not make it right for them to exploit every possible opportunity that comes their way.

And, ironically, to keep profiteers in check, the government had to intervene in the market to control the prices of face masks. Talk about the goodness of a free-market system!

So, while the Western world continues to propagate the free-market system as a perfect model, we have to accept that not all are ready to embrace freedom with responsibility.

As Malaysia rings in another year of independence, I am thankful to live in a blessed country that has been largely spared from natural disasters, such as Typhoon Morakot which struck Taiwan and has killed at least 461 people and left 200 missing since it hit on August 2.

And while the global economic crisis has slowed down the country's economic activity, exports, consumer confidence and spending, and led to job losses, the impact has been less severe than for its neighbours like Singapore and Thailand, as well as the US and Europe.

Our major home-grown companies, branches of multinationals, banks, retailers and airlines remain standing while the crisis continues to claim victims - some of them big names - around the world.

Selamat Hari Merdeka to all Malaysians and may we work together with the rest of the world to make this a better place to live in.