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If you use to wake up early every morning, like myself, maybe you watch Islamic Dakwah program, and it’s aired in all TV channel. Sometimes I enjoy it, as some moral guidance to start my day, since no other option of programs to be watched. Several day ago, PKS former President and our current speaker of the Assembly of Representatives Mr. Hidayat Nur Wahid came as a guest for a Dakwah program in RCTI. I don’t know if he came with real intention to preach religious theme or for hidden campaign, but soon the topics of economic and people’s welfare appear on the surface. If you read my article, I was praising PKS for accepting market economy even though they are Islamic Party (and most Islamic parties are anti Market Economy). But that morning seems Mr. Wahid came with different thought. He stated that market have to be supervise by government so it will not be too free (kebablasan -> give me the proper English please!!!). He said, yes PKS believe in market system, but government must always monitor the situation, and don’t believe 100% to market in regulating the economy. He gave an example, every Ramadan, all price suddenly rise, and he notify that this is an irresponsible action by several people and the victims are the PEOPLE who want to celebrate Ramadan. He concluded that good government should prevent this kind of situation that only benefited several persons while expensing most of the people and of course, the situation not benefited the Muslims who want to celebrate their holiday.
Now, let us examine this concept. First, I am the believer of market economy a.k.a. market liberalism alias: capitalism, whatever you want to label it!!! So you know my way of thinking. For non economist, Mr. Wahid Argument seems very reasonable, but lets us recall our economic textbook back in our college time. Samuelson and Nordhaus remind us of some fallacies that we can fall into every time we examine economic situation. One of those fallacies is fallacy of composition. “Sometimes we assume that what holds true for part of a system also holds true for the whole. In economics, however, we often find that the whole is different from the sum of the parts. When you assume that what is true for the part is also true for the whole, you are committing the fallacy of composition.”
To explain this concept, the text book provide with example of an ambiguous picture. The picture makes us confuse if the figures are pelicans or rabbits. If you look on closer perspective, the figures are more likely to be Pelican. But when you look it from wider point of view, the figures are more likely to be rabbits. It means that, what we see from closer view might be different with what we see from afar. Example of this fallacy is, when government is so happy when they hear that a farmer produces large quantity of crops. But what happened if at the same time, all the farmer produce the large quantity of crops?? Should government be happy??? When the market receive lots of sudden supply, the first reaction will be price reducing and at the end of the story maybe the incomes of all farmers will fall because exceeds of supply. The other example is BLT (Bantuan Langsung Tunai or Direct Cash Assistance for the poor). For all the poor government will give Rp. 200,000. If we look from narrow point of view, of course every person who receive it are happy, and it should be a good policy since it benefiting some persons. But if you look from wider view, when large quantity of free money goes into the market, what is likely to happen? Of course inflation and it will cost more than the benefit. See??? So in economic, don’t always rely on the truth that you see in your own narrow point of view. So, how we apply it to Mr. Wahid’s statement. Mr. Wahid has a narrow view when he see that the rising price at Ramadan only benefiting some part of the people while cost more to the people.
Mr. Wahid fallacy is, first, he forget that the seller, producer who rise the price also are people, who strive for they success, never steal, find halal earnings and of course, pay taxes. Mr. Speaker narrowly seen the “seller” as simply sellers, but if you view from wider point view, all the seller are also people of Indonesia. Their businesses are helping our economic. In Ramadan price might rise, but is it good for economic?? Of course it is bad for us as costumer. But when I assume that rise of price are bad for me, also bad for all of our economic, I make the fallacy of composition, because sometimes what is bad for me might be good for economic.
Supposedly most of the people are harmed by the rising price, what can we do??? They are also the people, as long as they are not committing any crime, they are free to decide the price. They have all the right. What can government do? Oh, ya, government can insist them to lower the price, but wait a minute, is it a coercion? Is it against freedom and human right?? Or, government can provide cheap goods, hmm, the result will be; cheaper price will hurt other seller (who are also people!)
Jika anda sering bangun pagi-pagi, seperti saya, maka mungkin anda sering menyaksikan acara penyegaran rohani agama Islam, yang ditayangkan di semua siaran. Kadang-kadang saya menikmati acaranya, anggaplah sebagai penuntun moral dalam memulai hari, lagipula, tidak ada pilihan lain. Beberapa hari yag lalu, mantan Ketua PKS dan Ketua MPR kita sekarang, Bpk. Hidayat Nur Wahid menjadi pembicara pada sebuah acara Dakwah di RCTI. Saya tahu, memang bapak Wahid datang dengan maksud mengkhotbahkan ajaran agama, tetapi kemudian topic tiba-tiba beralih pada masalah ekonomi dan kesejahteraan rakyat. Jika anda membaca salah satu article yang saya tulis beberapa bulan lau, saya memuji PKS karena menerima ekonomi pasar walaupun mereka Partai Islam (dan kebanyakan partai Islam anti Ekonomi Pasar). Tetapi pagi itu, tampaknya Bpk. Wahid datang dengan pikiran yang lain. Dia menyatakan bahwa pasar harus diawasi pemerintah kalau tidak kebebasan pasar akan kebablasan. Dia menyatakan bahwa, ya PKS mendukung system kebebasan Pasar, tetapi pemerintah harus selalu memonitor situasi, dan jangan percaya 100% pada pasar dalam mengatur ekonomi. Dia memberi contoh, setiap Ramadhan tiba