Breaking News: DBS cuts 900 jobs “to trim costs amid the global credit crisis”. (Channel NewsAsia)
“If all of us go into a power save mode, then the economy will really go into a recession! This is what economists called the Paradox of Thrift. If you have sufficient savings and can afford to spend, you should continue to spend on life’s little pleasures.
“Take your family to the movies, shop, dine out at restaurants and hawker centres, go for your regular foot massage, indulge yourself at a spa, take a taxi, donate to charity and so on.
“This way, we keep the economy going. In fact, I would say when times are a little slow, you could get the best bargain.” – Senior Minister Goh Chok Tong. (Channel NewsAsia)
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Well, I guess blade is right in saying to help the smaller businesses in such time as to pass on whatever possible businesses we give to the big boys to them instead. This could help them survive through the recession.
Even we may say that most rental rates are market driven and many such properties are privately own, Singapore is a very unique country where our government can literally influence anything they want if they choose to. Rental is always a major component in contributing to final cost of product sold. For example a hawker stall in Suntec Food Court has rental rate of S$10,000 per month. If such rental can be reduced, that bowl of noodle will have a lower cost.
Other retail outlets have rental as high as S$25,000 per month. And I am not talking about big departmental store but just your regular retail space of about 500 sq ft or so.
I do believe that our top brains with six figures salary income can come out with a solution to reduce rental if they really want to.
Of course such a move will not be popular with properties owners. But our government need to choose between pleasing the properties tycoons and saving the economy.
On a lighter note, I think he is trying to increase investors’ confidence by publicly persuading Singaporeans to spend more. I think SM Goh has quite an influence over Singaporeans, as he was the then PM and is relatively well-liked by citizens.
Investors will invest more in Singapore as they are more confident that Singaporeans are going to spend and consume more.
This creates jobs and thus keeps the economy going.
blade,
“instead of buying newpapers from convenience stores, we can buy papers from the roadside uncles and aunties, who will depend on that for a living. instead of buying for large supermarkets, we can buy from small neighbourhood stores, especially if the price is the same. indirectly, we have pass the money from those big companies who earn huge profit back to our small businesses to help them to survive.
the next time when you want to buy something, would you think of the question “how can i spend my money better, which can also help our people, instead of adding more profit to the big companies?””
that is a very good idea !
Let market forces decide. Since they like to shun responsibility and leave it up to market forces so much, why not let market forces decide now?
Market wants people to spend more, they will have to drop their prices.
Once prices are dropped, more people will naturally spend more.
There is no need to talk down and tell citizens what to do with their personal life. Let the market forces decide.
But I forgot, one of the govt’s favorite activity is to talk down to citizens and tell them what to do…
Oh yes, i will likely to provide my own humble solutions. We can start by
1) By increasing our electricity consumption, helping SP to earn more profits, in order to justify the 21% increase.
2) By driving into cities during peak hour, helping our government to earn more revenue from ERP. It will be “given back” to you in form of subsidies, payout, etc.
3) To motorcyclist, cyclist and other public transport haters- By traveling and squeezing(if there is still any space left) on our SMRT trains during peak hours. This is to help SMRT in applying for fares increase again due to well…overwhelming demands.
4) Work like shit as much as you can to supplement your household income during these uncertain times (you never know when you will get retrenched) so that the tendency to fall sick increases. Our hospitals are glad to admit you in to take care of you. Please refer to their website for a price comparison (to be amended due to high admission rate) prior to admission.
5) Buy more, so everyone earns….maybe our government can increase their wages next time citing the reason “Singapore economy remains bright in times of global crisis, thanks to us”.
155) Law on November 10th, 2008 10.19 am
Wow! I like the list you’ve proposed in increasing spending.
Those are really great ideas so that our top brains can continue with six figures pay. Since we have always been talking about high cost of living, spending this little extra in such trying times is certainly no big feat. The very most we just give our social welfare some work in taking care of us so that they too can keep their jobs and get the economy going.
Here’s a good reason why Singaporeans should not take their family and friends to the movies, shop, dine out at restaurants and hawker centres, go for your regular foot massage, indulge yourself at a spa, take a taxi, donate to charity and so on.
For people who are on property loans (HDB or not), prepare for your friendly bank to invoke a margin call on your property loan. If your property is worth less than what you still owe the bank, you will be asked to “top up” the difference.
Good luck! Remember you voted PAP during the last GE, so you are responsible for your own dire straits.