Potholes

EDSA is so bad right now. When are they gonna start fixing those bumps and holes?

Shifting the revenue burden to the masses

Read it here.

Shouldn't government provide basic services to the masses free of charge?

Did they study Microeconomics in college?

Was a price sensitivity survey conducted?

The LRT/MRT shouldn't be free of charge but the masses deserve the little convenience that mass transit brings. Increasing fares by as much as 100% (basic fare from P10 to P20) will definitely cause demand to drop. Higher fares + fewer riders = we're back were we started. Problem not solved.

The basic price sensitivity survey will give some indicator on how much you can increase the fare without affecting demand. Consumer research agencies conduct this type of study all the time. If that is too complicated for the people in charge to grasp, then here are a few suggestions:

1. Increase fares slowly like P1.00 every few months, or every year.

2. Increase fares during the high demand season like Christmas, then drop them again during low demand season like summer. This is what malls do with parking fees, though the parking fees do not ever drop. Starbucks increases their prices every year when they launch their much desired planner.

3. Higher fares during rush hour and lower fares during slack hours.

4. Buy the stored value card and you are not affected by the fare increase. Single journey cards will carry the increase.

This government needs to think more.

Are you proud of your President?

Images taken from businessworld online.