Is the widening of income gap really inevitable?

[kojakbt]

MM Lee said the widening of income gap is inevitable in a globalised world. Global competition, he said, both depresses wages at the bottom and boosts wages at the top. Let us take a look at 4 first world countries with roughly the same population size as Singapore's. Notice the big difference between their income gaps and ours as measured by Gini:

Country (pop), per capita GDP, Gini Index, Non-citizens in Pop (%)
Norway (4.7M) - $98,200 25.0, 6.3%
Ireland (4.2M) - $65,800 32.0, 11.1%
Denmark (5.5M) - $62,500 24.0, 5.2%
Finland (5.3M) - $52,200 29.5, 2.7%

[COLOR=_______]Singapore (4.7M) - $39,500 48.1, 35.8%[/COLOR]

* data from CIA World Factbook
* Gini index is between 0-100. A low value indicates a more equal distribution, with 0 corresponding to perfect equality, while higher values indicate more unequal distribution, with 100 corresponding to perfect inequality.
* for % of non-citizens in pop, data taken from:
http://en.wikipedia.org/wiki/Demographics_of_the_Republic_of_Ireland
http://www.ssb.no/utlstat_en/
http://www.stat.fi/til/vaerak/2008/vaerak_2008_2009-03-27_tie_001_en.html
http://en.wikipedia.org/wiki/Danish_people
http://www.singstat.gov.sg

 

[Leongsam]

Those countries are predominantly Caucasian with an egalitarian outlook.

Singapore, on the other hand, has a Chinese majority with a different philosophy towards life. The Chinese believe that in order to to take two steps forward, others have to be shoved two steps back. Inequality is the net result.

Let us take a look at 4 first world countries with roughly the same population size as Singapore's. Notice the big difference between their income gaps and ours as measured by Gini:

Country (pop), per capita GDP, Gini Index, Non-citizens in Pop (%)
Norway (4.7M) - $98,200 25.0, 6.3%
Ireland (4.2M) - $65,800 32.0, 11.1%
Denmark (5.5M) - $62,500 24.0, 5.2%
Finland (5.3M) - $52,200 29.5, 2.7%

Singapore (4.7M) - $39,500 48.1, 35.8%
http://www.singstat.gov.sg

 

[singveld]

but it is true, when you drive two cars in australia, someone in india have to take a crowd train.

if you drive one car instead and one bicycle, the metal to build the car and bicycle, can go to india to build a scooter for the ah neh.

so when you move two steps up, someone have to move two steps down. it is true, it is true.

 

[TeeKee]

methinks high Gini index means a few elites of the population, including the gabramen are crazily involved in the accumulation of manures.

who could blame them, if gabramen have this you die your own biz attitudes and when there's no good social welfare in place to take care of it's citizens?

if the gabramen is rich, prepare to be poor.

 

[Ramseth]

Widening of income gap is inevitable because government policy is higher and higher salaries to attract and retain "talents" but lower and lower salaries to create and save jobs for the "workforce". If there's no widening income gap, then government and the labour chief worry.

 

[Watchman]

 

[kojakbt]

Those countries are predominantly Caucasian with an egalitarian outlook.

Singapore, on the other hand, has a Chinese majority with a different philosophy towards life. The Chinese believe that in order to to take two steps forward, others have to be shoved two steps back. Inequality is the net result.

Basically, those 4 angmo countries have better welfare system than us... and to add further insult to Singaporeans, PAP recruit large number of cheap FTs to compete with Singaporeans... end result, SG has the worst social divide among all the nations of advanced economy.

 

[TeeKee]

SG has the worst social divide among all the nations of advanced economy.

spore is not an advanced country.

only developed and advanced countries promote egalitarianism.

that's a major indication of "we have arrived!".

 

[hairylee]

LKY justifying his own selfish interest.