Most people think that a free market system that gives high income is better for a country. Singapore is an example of a country that has per capita high income.
I wish to share a different perspective.
Ten years ago, I asked a Russian couple. Was Russia better at that time or when it was under the communist system.
The woman, who was a retired teacher, said that Russia was better under the communist system. Why? She explained that although they were poor, the cost of living was affordable and they enjoyed security of employment. They could enjoy culture and interaction with other people.
The man, who is a small businessman, said that Russia was better under the free market system. Why? He was able to get more business.
I visited Jakarta regularly. I was surprised that the ordinary workers that earned a low wage was able to raise a family with several children. Why? Because their cost of living was low.
What is my conclusion?
For most people, the important measure is the wages relative to the cost of living. A good system ensures that the wages are adequate to meet the cost of living and leave aside some saving. This is the system in most European countries.
On some countries, such as America and Singapore, most of the working people have to struggle with wages that are not adquate to meet the cost of living. Furthermore, they face the uncertainty and insecurity of jobs. They can be easily retrenched.
Maybe 10% of the population are doing well. Maybe 1% are extremely wealthy. These people are doing extremely well under the free market capitalist system. But the remaining 90% have to struggle to get by.
The people living in countries with high income and exchange rate also do well when they travel to the countries with low cost of living. But how often do we travel to enjoy this benefit to enjoy the benefit? Maybe the 10% can afford to travel, but the remaining 90% might find it difficult.
What is a better system?
I prefer the European system. They have a nice balance between capitalism and socialism. They seem to produce a better outcome for the people. That is why the Scandinavian countries have scored high in the index of happiness.
The system used in the European countries is not perfect. But on balance, they seem to be better than the high inequality in other countries.
Tan Kin Lian
I wish to share a different perspective.
Ten years ago, I asked a Russian couple. Was Russia better at that time or when it was under the communist system.
The woman, who was a retired teacher, said that Russia was better under the communist system. Why? She explained that although they were poor, the cost of living was affordable and they enjoyed security of employment. They could enjoy culture and interaction with other people.
The man, who is a small businessman, said that Russia was better under the free market system. Why? He was able to get more business.
I visited Jakarta regularly. I was surprised that the ordinary workers that earned a low wage was able to raise a family with several children. Why? Because their cost of living was low.
What is my conclusion?
For most people, the important measure is the wages relative to the cost of living. A good system ensures that the wages are adequate to meet the cost of living and leave aside some saving. This is the system in most European countries.
On some countries, such as America and Singapore, most of the working people have to struggle with wages that are not adquate to meet the cost of living. Furthermore, they face the uncertainty and insecurity of jobs. They can be easily retrenched.
Maybe 10% of the population are doing well. Maybe 1% are extremely wealthy. These people are doing extremely well under the free market capitalist system. But the remaining 90% have to struggle to get by.
The people living in countries with high income and exchange rate also do well when they travel to the countries with low cost of living. But how often do we travel to enjoy this benefit to enjoy the benefit? Maybe the 10% can afford to travel, but the remaining 90% might find it difficult.
What is a better system?
I prefer the European system. They have a nice balance between capitalism and socialism. They seem to produce a better outcome for the people. That is why the Scandinavian countries have scored high in the index of happiness.
The system used in the European countries is not perfect. But on balance, they seem to be better than the high inequality in other countries.
Tan Kin Lian
agree
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