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5 comments:
It was already a significant trend in S'pore in 2009. Many of the jobs created in the last 12 months were contract jobs, and not even 1 or 2 year contracts, but instead many 3-month contracts.
Such developments will lead to further deterioration of the income gap, the haves versus the have-nots. It may also have negative impact for social mobility. If more and more breadwinners are not assured of a stable income stream, how will it affect a family's ability to provide a conducive environment to children and their educational and personal development?
With this kind of economic and social landscape forming, commentators are concern that it will lead to creation of a bigger underclass and social unrest.
http://humblestudentofthemarkets.blogspot.com/2010/01/american-dream-or-fugue.html
Employees are also customers.
When you sack an employee, or reduce his pay ... it basically means that you now have a customer with less money to spend.
Of course there are always the very few employees on million dollar salaries. But how many cars, everyday groceries and etc can they buy to stimulate demand (and hence jobs) in the economy?
There is also something called the velocity of money. It's an old fashioned economic concept that seems to be forgotten along with Keynesian economics.
REX comments as follows,
The more frightening thing is this problem is not static but continuous and repeating for ever.
Each year, thousands more singaporeas will enter the job market as they complete their studies in poly's, U's, O's, A's and so on, or ORD from the Army. What is the master plan for the economy. If there is no master plan than ministers must take pay cut. It is no longer tenable for them to draw $200,000 per month salary if they are unable to solve the basic problems of the masses.
REX
One minister even said that the people can even vote MM Lee out if he has no value.
But of the many things happening eg free lance jobs, widening income gap, social issues etc, I think one thing will never change in SIngapore. And that thing is politics. It will be status quo every election and the last bastion that will defy change.
If it is just Citizens entering into the economy / workforce yearly, then not so bad.
The even more more frightening thing for S'pore is that it's not just Citizens, but foreigners, PRs, work permits, S Pass, employment pass, new citizens, etc. etc.
Our govt appears lacking of a masterplan to guide citizens towards higher value add industries with higher salaries AND ability to absorb critical mass of citizen workers. Instead it keeps thinking of fighting the old wars with Cheaper, Better & Faster.
Stratfor Global Intelligence has just identified some of the possible trends in the next 10 years. And one of them is the social and economic tensions in Western Europe between the elites and lesser mortals, and between the lesser mortals and immigrant workers. Sounds similar to S'pore situation. And you gotta remember -- Europe has quite strict immigration laws, so S'pore situation may be worse!
http://www.businessinsider.com/stratfor-predictions-for-the-next-decade-2010-1#europe-heightened-native-immigrant-tension-2
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