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Another question we should ask: Is a dwindling support ratio really as terrifying as it appears? We may be better off adjusting to a new normal than to try to artificially prop up the number. A lower support ratio can be mitigated by increasing social spending, encouraging greater savings, improving health levels, raising the retirement age, and boosting the workforce from within core resident population. Instead, the government can’t look beyond a straight and easy answer of inward migration to boost the ratio. To make matters worse, the resultant higher cost of living, overcrowding and competition of jobs have a direct adverse effect on these aforementioned mitigating factors.
Then there is the productivity drive. The government is basically conceding defeat on this front by claiming that 2-3% improvement is a stretched target and 1-2% is a more realistic longer term aim. The Paper cites OECD countries with levels of productivity growth averaging 1-2%, but it is a red herring to compare Singapore to countries such as Japan. We may have a first world economy that churns out wonderful numbers on the aggregate level, but this is done with brute force factor accumulation (mainly labour) à la developing economy style. In short, there is tremendous quantity but low quality in the kind of growth we achieve. Therefore, I remain unconvinced that our productivity can’t improve further.
Lastly...
- http://www.voiddecker.com/2013/01/population-white-paper-is-unpopular-and-unsustainable/
Then there is the productivity drive. The government is basically conceding defeat on this front by claiming that 2-3% improvement is a stretched target and 1-2% is a more realistic longer term aim. The Paper cites OECD countries with levels of productivity growth averaging 1-2%, but it is a red herring to compare Singapore to countries such as Japan. We may have a first world economy that churns out wonderful numbers on the aggregate level, but this is done with brute force factor accumulation (mainly labour) à la developing economy style. In short, there is tremendous quantity but low quality in the kind of growth we achieve. Therefore, I remain unconvinced that our productivity can’t improve further.
Lastly...
- http://www.voiddecker.com/2013/01/population-white-paper-is-unpopular-and-unsustainable/
