Monday, February 24, 2014

Government policies that lead to high cost of living

Someone said:
Mr Tan, every country also got inflation. For a small country like ours with no natural resources where everything we need is imported, how do you expect the Govt to stop inflation? ..... 
The government policies that led to high rates of inflation and high cost of living in Singapore are:
1. High property prices
2. High COE
3. GST
4. Lack of control over health care cost, over charging
This is made worse by:
1. Stagnating wages due to outsourcing and inflow of cheap foreign workers
2. Low interest rate on savings
3. No minimum wage.
4. Reservist and remedial training for NS men

A good government, a good finance minister, will address these issues. IB trolls will defend the ineffective government by saying "inflation is beyond anybody's control".

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