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I am not saying that I am supporting Sg govt's argument in total either. The PAPpy govt appears to be that since wage increase does not work, let's do nothing and leave it as status quo. That is just as suicidal. We should cut both business costs and cost of living.
In my first post on Lim Chong Yah's shock therapy, I suggested the various areas where the govt could reduce costs for both businesses and individuals. By reducing costs for individuals, their spending power goes up. No need for wage increase.
At the same time, reducing costs for businesses also means that their profit goes up and their business become more sustainable - a much needed recipe to keep the economy strong so that jobs are secured.
Areas where PAPpy govt can do much -
The areas where costs can be reduced that I suggested in my last article include:
- Cutting fuel tax
- HDB and JTC reducing rental costs
- Essential services providers should not seek to make profit
- Ditching the COE system
- Exempting essentials from GST
- Providing affordable housing and healthcare, by not allowing providers of such to make profits
- Cutting down on the big monstrous defence budget spending
Conclusion -
I have explained the above in detail in my first post on Lim Chong Yah's wage shock therapy suggestion.
The usual argument is that we must up wages and hence companies will be forced to up training and productivity. This is an overplayed argument. The alternative to that is to reduce costs of businesses and cost of living. That is always overlooked.
I strongly suspect the reason why govt doesn't want to reduce costs is because if they did that, the rich will have to make up for the revenue loss. That means higher taxes levied on the rich, including the highly paid PAPpy themselves.
For too many times and too long, it is the rich and not the poor that the govts of the world are protecting. Singapore is no different.
While Lim Chong Yah's shock wage therapy won't work today, neither will PAP's non action. We're doomed to see slow economic growth for the short to medium term. Don't even dare think about long term implication.
- http://wherebearsroamfree.blogspot.com/2012/04/lim-chong-yah-gives-shock-therapy-pap.html
In my first post on Lim Chong Yah's shock therapy, I suggested the various areas where the govt could reduce costs for both businesses and individuals. By reducing costs for individuals, their spending power goes up. No need for wage increase.
At the same time, reducing costs for businesses also means that their profit goes up and their business become more sustainable - a much needed recipe to keep the economy strong so that jobs are secured.
Areas where PAPpy govt can do much -
The areas where costs can be reduced that I suggested in my last article include:
- Cutting fuel tax
- HDB and JTC reducing rental costs
- Essential services providers should not seek to make profit
- Ditching the COE system
- Exempting essentials from GST
- Providing affordable housing and healthcare, by not allowing providers of such to make profits
- Cutting down on the big monstrous defence budget spending
Conclusion -
I have explained the above in detail in my first post on Lim Chong Yah's wage shock therapy suggestion.
The usual argument is that we must up wages and hence companies will be forced to up training and productivity. This is an overplayed argument. The alternative to that is to reduce costs of businesses and cost of living. That is always overlooked.
I strongly suspect the reason why govt doesn't want to reduce costs is because if they did that, the rich will have to make up for the revenue loss. That means higher taxes levied on the rich, including the highly paid PAPpy themselves.
For too many times and too long, it is the rich and not the poor that the govts of the world are protecting. Singapore is no different.
While Lim Chong Yah's shock wage therapy won't work today, neither will PAP's non action. We're doomed to see slow economic growth for the short to medium term. Don't even dare think about long term implication.
- http://wherebearsroamfree.blogspot.com/2012/04/lim-chong-yah-gives-shock-therapy-pap.html
