Comments on: Danger when simplistic benchmarks influence the wrong behaviours http://theonlinecitizen.com/2007/04/danger-when-simplistic-benchmarks-influence-the-wrong-behaviours/ a community of Singaporeans Sun, 21 Mar 2010 20:54:01 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: leo http://theonlinecitizen.com/2007/04/danger-when-simplistic-benchmarks-influence-the-wrong-behaviours/comment-page-1/#comment-592 leo Fri, 13 Apr 2007 11:32:35 +0000 http://theonlinecitizen.com/2007/04/12/danger-when-simplistic-benchmarks-influence-the-wrong-behaviours/#comment-592 This is similar to Mr Leong Sze Hian's April 9 entry ("Minister's Salary - is the govt losing touch") where he proposed that Minister's salary be pegged to say 135 times that of say the 20th percentile income. So if a Minister's salary is pegged to the 100 highest income earners, wouldn't their decisions be coloured by whether they can enrich these 100 or better yet encourage even higher income earners to come to Singapore? But I would argue that it is easier to raise the income of the low wage worker than to raise the income of the high-earners. High income earners are also highly mobile. To raise the salaries of the low wage workers, the government can just introduce a slew of measures like minimum wage, protect jobs, subsidise manufacturing or jobs that would otherwise have left our shores, prevent retrenchment. But these measures may not be in the long term best interests of our country. These measures would in effect mean that our leaders are using taxes to unduly support economically unviable practices in order to shore up the wages of the low income and because their salaries are tied to the lowest wages, ultimately to enrich themselves at the expense of the country. The road to hell is paved with good intentions. The road to disaster may also be similarly paved. The obvious answers are not always the right answers. Obvious answers like subsidies, welfare, minimum wages, affirmative action, protection of labour, etc. If these were the right answers, lots of countries would have got in right and would be in a better position than us. This is similar to Mr Leong Sze Hian’s April 9 entry (“Minister’s Salary – is the govt losing touch”) where he proposed that Minister’s salary be pegged to say 135 times that of say the 20th percentile income. So if a Minister’s salary is pegged to the 100 highest income earners, wouldn’t their decisions be coloured by whether they can enrich these 100 or better yet encourage even higher income earners to come to Singapore?

But I would argue that it is easier to raise the income of the low wage worker than to raise the income of the high-earners. High income earners are also highly mobile. To raise the salaries of the low wage workers, the government can just introduce a slew of measures like minimum wage, protect jobs, subsidise manufacturing or jobs that would otherwise have left our shores, prevent retrenchment.

But these measures may not be in the long term best interests of our country. These measures would in effect mean that our leaders are using taxes to unduly support economically unviable practices in order to shore up the wages of the low income and because their salaries are tied to the lowest wages, ultimately to enrich themselves at the expense of the country.

The road to hell is paved with good intentions. The road to disaster may also be similarly paved. The obvious answers are not always the right answers. Obvious answers like subsidies, welfare, minimum wages, affirmative action, protection of labour, etc.

If these were the right answers, lots of countries would have got in right and would be in a better position than us.

]]> By: Joshy http://theonlinecitizen.com/2007/04/danger-when-simplistic-benchmarks-influence-the-wrong-behaviours/comment-page-1/#comment-591 Joshy Fri, 13 Apr 2007 01:56:47 +0000 http://theonlinecitizen.com/2007/04/12/danger-when-simplistic-benchmarks-influence-the-wrong-behaviours/#comment-591 This has many aspects similar to the time during the Late Qing Dynasty when peasants were getting restless,foreigners were looking down on the nation and when the Qing officials were getting corrupt. That was also when the new western educated people rose up against a corrupt government. Benchmarks which are elitist will not bring positive impact to Singapore and instead would breed negative feelings amongst ourselves and from our neighbours abroad This has many aspects similar to the time during the Late Qing Dynasty when peasants were getting restless,foreigners were looking down on the nation and when the Qing officials were getting corrupt. That was also when the new western educated people rose up against a corrupt government.

Benchmarks which are elitist will not bring positive impact to Singapore and instead would breed negative feelings amongst ourselves and from our neighbours abroad

]]>