Marcos’ finance undersecretary asked to resign over Facebook post vs rice price cap

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Disagreeing with the President's contentious economic policy comes with a price

Multiple sources confirmed to reporters that Magno’s resignation will be effective September 16. She will also return to teach at the University of the Philippines , where she previously taught public finance and microeconomics.

In a Facebook post, which has been set to “for friends” only, Magno posted a photo showing the chart of the law of supply and demand, perhaps the most basic of all charts in economics. In economic theory, setting mandatory price caps would generate increased demand and decreased supply, leading to a shortage. Marcos’ economic managers supported the price ceiling on rice, with Diokno even tweeting that it would be effective in the near-term.Marcos’ economic managers supported the price ceiling on rice, with Diokno even tweeting that it would be effective in the near-term.

To manage upward pressures in rice prices, price controls on rice through EO No. 39 serves as a short-term measure against non-competitive practices by some market players. Price controls, when carefully calibrated and closely implemented, are effective in the near-term.

 

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