Letters to the editor – 19 August 2022
What about the locally induced pricing part?
The leader of the Times of Malta (August 9) was about ‘Getting a grip on inflation’. He made reference to many of the factors that have to do with inflation in the Maltese islands… except one very important one: endogenously created or stimulated inflation.
Every student of basic economics is taught about exogenously and endogenously created inflation. But the Times of Malta failed to even say a word about the latter, what it is and what can be done about it.
As things would follow, the day after that leader’s letters to the editor’s columns included a perfect example of how things are allowed to be done in Malta. The main political parties have found it comfortable to endlessly say the mantra that “one cannot do much about inflation because prices increase from outside”.
That, however, is only part of the truth about Malta’s inflation and the reality is that our National Statistics Office or the Central Bank of Malta or most economic experts they never come up with any form of statistics that give us exact details of which part of ours. inflation is from exogenous sources and is the result of the current fallacious economic policy of the government that never dared to confront that thing called “the market”.
“Prices will have to rise because most of what we sell comes from abroad” says the mantra. But what about the way, including percentages, of mark-ups and other uncontrolled add-ons indulged to arrive at the final sales prices to local consumers?
Why? On the one hand, the lobbyist bodies have become so powerful that all parties want to have them on their side. On the other hand, both the political class and the civil service are simply terrified of having to undertake a serious investigation into why – and how – the prices of products are constantly increasing in Malta.
Arbitrarily decided costings and mark-ups would be a nightmare for our civil servants to have to deal with and, therefore, staying away from any such intervention in the market is very comfortable… just let the citizen simply accept it and pay more.
Inflation from local sources is rampant everywhere: grocery stores, restaurants, bars, takeaways, even professional service providers: everyone presses on what is below them or in contact with them. The multiplier effect, of course, helps the exponential and cumulative effect all around.
The stratagems and cottages resorted to for such uncontrolled price increases, and, of course, rapid increases in profit, are often many. During the current season we have seen, for example, many resorting without restraint to the reduction of container sizes, portions and quantities sold, concurrent with price increases.
The “wisdom” of the local businessman is indeed endless and will continue to run rampant as long as the current policy being pursued by the political class is allowed to persist.
John Consiglio – Birkirkara
Dream together, work together
One of the greatest English singers, writers, musicians and peace activists, John Lennon, said: “A dream that dreams alone is just a dream. A dream that you dream together is a reality.”
Can we join hands and together make a better world, both for those born and for those still in the womb? Can we work on this dream together?
Rev. Mario Attard, OFM Cap – Marsa
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