Alex Au: Softly, softly, will not narrow income gap. (Good piece)

[Confuseous]

At the same time, Lim and the government are not fully engaging. Lim was talking about narrowing the income gap, but the government sidesteps the question and talks about productivity improvements.

They are actually different things.

You can have productivity improvements that raise the wages of the bottom stratum, but still have top salaries zooming away. They result may not be any happier. As top salaries zoom up, their buying power tends to raise the overall price level in an economy, and so even as bottom wages rise, they may still find things priced out of reach.

Concentration of wealth sucks vitality out from a society. Vested interests that are too entrenched present barriers to innovation, in the same way that monopolistic behaviour stifles competition. There is a public good to be had when income spreads are prevented from getting too wide.

Yet, the sad fact is that the government does not even want this question on the agenda. They chant the mantra that high pay attracts great talent and that great talent means economic growth.

- http://yawningbread.wordpress.com/2012/04/15/softly-softly-will-not-narrow-income-gap/

 

[kingrant]

I was like wondering when Alex will jump in to the fray. And he has. As always, penetrating and insightful. He hit the nail on the head - the govt is avoiding the issue and as always, throwing a smoke screen and living in denial.

This govt is pro-business and so sorry to you downtrodden workers, it has left you behind after Singapore became independent from M'sia. It was one long road in betrayal.

 

[scroobal]

The exact same reason why they did not want to repeal Sec 376 despite the push from the old man - unable to secure votes. All the focus group and research indicated that there was sufficient opposition. Not only the conservative older generation but also from 2 major religions including new age churches making the voice heard. You must know by now that every new age church is pro-PAP. Actually the PAP never expected the reaction. We saw the full bore when our lady professor and her mother tried to do a mini coup de tat.

Do agree on his exceptional qualities. Unlike VW, Alex spent his earlier years fighting trivial stuff for the gay community. You won't believe this but his first brush with the authorities is about males slowing dancing. Licences in some nitespots over males caught slow dancing. He appealed on this. The other issue is Alex with a pen is very different from Alex with a voice. The latter comes across emotional and less organised.

I was like wondering when Alex will jump in to the fray. And he has. As always, penetrating and insightful. He hit the nail on the head - the govt is avoiding the issue and as always, throwing a smoke screen and living in denial.

This govt is pro-business and so sorry to you downtrodden workers, it has left you behind after Singapore became independent from M'sia. It was one long road in betrayal.

 

[Kinana]

What the govt does is actually correct.
Boosting productivity by heavily subsidising skill upgrading. Many have taken advantage of it and have gone on to do better in life. Those who refuse to upgrade will bear the consequences.

 

[zeddy]

What the govt does is actually correct.
Boosting productivity by heavily subsidising skill upgrading. Many have taken advantage of it and have gone on to do better in life. Those who refuse to upgrade will bear the consequences.

How about those old folks in their 60s and 70s workin in food courts clearing the plates? They roughly earns $600 to $700 per month.. What upgrading programmes can you recommend them so that they can earn more when clearing the plates?

 

[Kinana]

How about those old folks in their 60s and 70s workin in food courts clearing the plates? They roughly earns $600 to $700 per month.. What upgrading programmes can you recommend them so that they can earn more when clearing the plates?

Govt subsidise their housing and medical care.

 

[tua lam pah]

some guys are working their bones off clearing tables for 800pm,
other do fuck off , play a bit of politics and get paid 1 million a year....
why do anyone need so much money?? things are NOT looking good for the human race....

 

[zeddy]

Govt subsidise their housing and medical care.

Its a different matter all together.. Upgrading is not neccesariliy the path to a better pay and better job prospects..I know of this chap who works as a handyman.. He went for upgrading programme in the hope that his $900 monthly pay would increase substantially upon the completion of his course.. He completed his course and yes his pay was increased to a paltry $50 more..

 

[makapaaa]

The real problem is the greedy, corrupt and power hungry FAP itself. If it goes, most of SG's problems will be solved.

 

[Narong Wongwan]

The real problem is the greedy, corrupt and power hungry FAP itself. If it goes, most of SG's problems will be solved.

Please ask the 60.1% for permission.
Last I checked in May, people who shared your views are in the minority.

 

[Bigfuck]

What the govt does is actually correct.
Boosting productivity by heavily subsidising skill upgrading. Many have taken advantage of it and have gone on to do better in life. Those who refuse to upgrade will bear the consequences.

Why is it correct? We know your word alone has no value in SB or in the real world? Why must those refuse bear the consequences? Who says those who have gone for skill training have been upgraded? Who say many have taken advantage or were able to take advantage? How do you know they have better lives? How do you know they have not borne worse consequences? Have you taken your medicine?

 

[Leongsam]

Concentration of wealth sucks vitality out from a society. Vested interests that are too entrenched present barriers to innovation, in the same way that monopolistic behaviour stifles competition. There is a public good to be had when income spreads are prevented from getting too wide.

Spoken like a true leftie.

Thank goodness he holds no positions of power. However, he is perfectly welcome to spew his garbage on his own blog.

 

[kingrant]

Subsidies for skill upgrading comes from who? You, me, and other taxpayers. It is still govt money from our pockets. Since when have companies/businesses come out with anything to break the low-wage trap? None. Becuz that will undermine their interests. Keep costs down, let govt pick up the tab, in the end, we pay twice over - the taxes and now keeping our pay in arrears.

Don't just mouth slogans and platitudes. Let's hear some real economics arguments from you, else you are just a troll, an irritating one.

What the govt does is actually correct.
Boosting productivity by heavily subsidising skill upgrading. Many have taken advantage of it and have gone on to do better in life. Those who refuse to upgrade will bear the consequences.

 

[Debonerman]

Bring back the days of petty corruption at the lower strata of the Civil Service and the problem will be half solved. A better solution is to wipe out the landlords and their entire families. Then watch the tsunami of blood money flow and irrigate the parched fields of poverty.

 

[streetsmart73]

What the govt does is actually correct.
Boosting productivity by heavily subsidising skill upgrading. Many have taken advantage of it and have gone on to do better in life. Those who refuse to upgrade will bear the consequences.

hi there


1. hahaha!
2. you must one of those sheep that have had upgrading yourself.
3. taking up forklift driving, hairdressing or cake-baking programmes too!

 

[streetsmart73]

Govt subsidise their housing and medical care.

hi there


1. get real!
2. wake up & smell the kopi.
3. stop dreaming.

 

[Kinana]

Govt does heavily subsidise housing and medical care for the low income. They even give food items for free to them regularly. What else you want? Subsidise flat screen TV?

 

[kingrant]

Exactly, if govt already spends so much on subsidies, why add more just 'cos private businesses are shirking responsibilities and passing on buck to the govt that results in workers not getting their economic and scoial justice and taxpayers paying more?

You shld do a simple course in basic accounting and understand simple ledgers and P&L. Also stick to yr main thread.

Govt does heavily subsidise housing and medical care for the low income. They even give food items for free to them regularly. What else you want? Subsidise flat screen TV?

 

[Kinana]

Its a very simple answer, supply side economics.
Don't hold back the supply side.

 

[kingrant]

You are just like the fella who talks a lot about condoms and have never fucked.

The morass Singapore is in today is due to one thing and one thing only. The PAP govt has not kept its eyes on the ball. Since 1981 after the NWC recomms, the govt has lost sight of productivity growth and allowed wage increases to overtake productivity growth. When recession hit, the govt tweaked CPF and cut back to 10%. Employers were able to rebound and then the govt forgot all about what NWC proposals then was all about. Fast fwd to 2012, the PAP is still talking abt productivity even after decades of productivity movement and campaigns! While workers' belts were forced to be tightened and their mouths gagged by a prostitute labour union chief, bosses enjoyed cheap labour from outside with the blessings of govt via the tripartitte scam. Of cos, govt ministers are happy and kept quiet becuz GDP gains (via cheap labour and not productivity growth) allowed them to claim the National Bonuses as part of their astronomical salaries. In the end, govt and bosses fatten themselves while the lowly workers languished in poverty and subsistence living. This govt has lost its balls when it comes to controlling bosses and companies, so always choose the way easiest option - strangle the worker!

Its a very simple answer, supply side economics.
Don't hold back the supply side.