Admission - Almost all the growth in the last 3 decades went to profits

[winnipegjets]

GDP wage share rose slightly in 3 decades

By Adrian Lim
My Paper
Thursday, Mar 07, 2013

SINGAPORE - The share of Singapore's gross domestic product (GDP) which went to wages had grown only slightly in the decades between 1980 and 2009, figures revealed yesterday by the Minister for Trade and Industry showed.

In the 1980s, the wage share of GDP averaged 41.8 per cent; this "rose slightly" to 41.9 per cent in the 1990s, said Mr Lim Hng Kiang. Between 2000 and 2009, the average wage share grew to 42.5 per cent, Mr Lim added when responding to a question from Nominated Member of Parliament Eugene Tan.

Economists My Paper spoke to said Singapore's wage share lags behind those in other developed economies, which generally have a wage share of above 50 per cent.

"We have a long way to go. The Government has allowed the foreign-worker (influx) to keep wages down for a substantial period of time," said CIMB regional economist Song Seng Wun.

But with the Government's measures to restructure the economy - by reducing reliance on foreign manpower and raising productivity and wages - Mr Song said the wage share should rise. But the flipside of the wage share of the GDP is the profit share of companies, and this may thus decrease correspondingly, he said.

OCBC economist Selena Ling said that Singapore's wage share is "not too bad" compared to those of the Organisation for Economic Cooperation and Development, which saw declines in 26 of the 30 developed economies from 1990 to 2009. For these countries, the median labour share of national income fell from 66.1 per cent to 61.7 per cent, Ms Ling noted.

So, even though Singapore's absolute wage share remains relatively low, "the pace of wage growth has been largely keeping pace with headline GDP growth", Ms Ling said.

Assistant professor Tan also asked for the ratio of labour income to profits earned by the private sector. Mr Lim said that this breakdown was unavailable due to data limitations.

But he said that for the economy as a whole, the ratio of wages to profits has remained "broadly unchanged".

Mr Lim said that in the 1980s, the ratio averaged 0.83; in the 1990s, it was 0.86; and between 2000 and 2009, it was 0.85.

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[winnipegjets]

The rich got richer while most of the salaried folks saw little wage rise.

The share of Singapore's gross domestic product (GDP) which went to wages had grown only slightly in the decades between 1980 and 2009, figures revealed yesterday by the Minister for Trade and Industry showed.

What's the point of growth when the people saw so little of the benefit?

Singapore's wage share lags behind those in other developed economies, which generally have a wage share of above 50 per cent.

Goh Chok Tong promised his Swiss standard of living ...it didn't materialize because he was paid off by businessmen not to improve the lives of sinkees?
Sinkapore is supposed to be a developed country, yet our policy towards labour is third world.

The Government has allowed the foreign-worker (influx) to keep wages down for a substantial period of time," said CIMB regional economist Song Seng Wun.

That's why we need to stop entry of foreign PMET and kick 90 percent of those already here out.

OCBC economist Selena Ling said that Singapore's wage share is "not too bad" compared to those of the Organisation for Economic Cooperation and Development, which saw declines in 26 of the 30 developed economies from 1990 to 2009. For these countries, the median labour share of national income fell from 66.1 per cent to 61.7 per cent, Ms Ling noted.

This economist, a former civil servant, is sucking up to the PAP, trying to give a positive spin to a bad situation.

Assistant professor Tan also asked for the ratio of labour income to profits earned by the private sector. Mr Lim said that this breakdown was unavailable due to data limitations. But he said that for the economy as a whole, the ratio of wages to profits has remained "broadly unchanged".
Mr Lim said that in the 1980s, the ratio averaged 0.83; in the 1990s, it was 0.86; and between 2000 and 2009, it was 0.85.

Hiding data. Why would they have data for the economy but not break it down for the private sector? While the ratio may be unchanged as a whole, it is likely that the private sector would see a drop as during the last 3 decades, we saw a big jump in the pay for ministers and senior civil servants. That's likely the reason why the government doesn't want to show the breakdown in the ratio for the private sector.

 

[Equalisation]

they say here grow, there grow , then what happened to OUR hard-earned CPF money which we are supposed to get back at age 55 ?

 

[johnny333]

they say here grow, there grow , then what happened to OUR hard-earned CPF money which we are supposed to get back at age 55 ?

It's a fami-Lee SECRET

 

[tonychat]

they say here grow, there grow , then what happened to OUR hard-earned CPF money which we are supposed to get back at age 55 ?

Oh it's all gone. It's all gone. Because you are ball-less.

 

[kongsimi]

shocking. for the past thiry years our gross domestic products grew. inflation grew.

only our real wages didn't grow.

like that how can singaporeans survive?

what kinds of crapkonomics our MIWs are dishing out?

who are the people sitting in the national wage council?

do they have economics training?

or they are just bunch of labour exploiters?

 

[cass888]

What's wrong with that? Why are you so anti-profits? Your country is still reeling from the damage done by Chretien and Martin and have learnt their lesson to finally give Harper a majority. Unfortunately, you may not find another Mulroney who has what it takes to do what needs to be done.

GDP wage share rose slightly in 3 decades

 

[iluvgst]

One only has to look to America to figure out where the GDP growth went to. In America, 90 percent of the GDP growth went to the top 10 percent of income earners. Singapore won't be too far off. Not being able to generate such data or stats is just plain bs.