THURSDAY, April 25, 2024
nationthailand

Cash handouts not the right way

Cash handouts not the right way

The junta government plans to spend Bt40 billion on cash handouts and subsidies.

Of interest is the Bt2,750 monthly payment to qualified low-income earners. Despite all the good intentions, it is known that cash handouts to the poor have never worked; nor is it financially sustainable in the long run. The only exception might be the one-off cash payment (stimulus package) for spending to stave off recession during a global financial crisis or a similar situation.
Below are not criticisms as much as raising concerns for those in charge to consider.
1. This welfare scheme invariably has a political dimension. Aside from the junta’s spending spree on defence, if they spend a lot on welfare now, it will shift the financial burden to the next elected government. What if the next government cuts/reduces welfare spending? Will they be accused of being unsympathetic to the poor’s plight? Will the scheme make the poor dependent forever on government handouts? On this the late Singapore leader Lee Kuan Yew said it best: “A fair, not welfare, society.”
2. Transparency and execution: As millions of low-income earners are eligible, this will involve a lot of data processing and tracking, requiring a lot of manpower and agencies. The government plans to credit the funds to users’ electronic cards. Can we verify each individual is aware of this scheme and has the card? (Think ghost voters) As the stored credit cannot be rolled over to next month, will the unused portion be returned to the Finance Ministry? Who will monitor these processes?
More appropriate, I believe, are direct discounts and the creation of real value to the economy, as follows:
1. Set up job training centres in every province where low-income earners (and indeed anyone) can get job training such as carpentry, craftsmanship, electrical work etc., as well as job search.
2. Do away with cash handouts. Provide the poor with a “low-income earner card”, whereupon presenting this card entitles them to free or discounts on transportation, electricity and water bills, much like a student or elderly card. No funds will change hands.
3. Annual high-school and university scholarships.
4. Increase prices of agricultural produce or government direct purchase, as government did with purchase of rubber in the South.
Throwing money at poverty will do more harm than good. Creating and upgrading jobs and education, coupled with government discounts on housing and utilities, will create greater value to society, making it – “a fair, not welfare, society”.
Edward Kitlertsirivatana

nationthailand