Originally posted by TooFree:
I like the idea to channel the funds to help the poor directly. But on the other hand, I am afraid that the society based on meritocracy may erode and people might get overly-relay on the government when times of uncertainty arises. The point I am trying to make here is not for the government to shrink responsiblilty and neglect the citizens during these time but instead to point out certain flaws of doing that.
We can no longer have the luxury of a stable markets and currencies in today's society. The plummeting of one's country stock market is now a global affair. Hence, changes is the only thing constant. During such times, when the economy grows stagnant, the next best immediate measures, beside to reduce taxes etc, would be to aid the unemployed to maintain a living. Netherless to say, in turbulence times, the jobs market will be hit the hardest and people will be scabbling for jobs worldwide. The fight for livelihood will now be on between two citizens, one armed with the relevant workskill and one who is not. Who will has the edge?
Hence, it is still a better and safer bet to use the funds to aid the poors and uneducated by upgrading theirs skills through subsidies for education, jobs investment that generate employment or through one-time bonuses. The long-term life skills learned is a better bet to a brighter future in my opinion, than to offset the miscellanous charges/taxes which on the other hand may promote another problem - a widen gap between the rich and poor.
The situation of high costs of living is a serious one. It is so serious that
(a) Lower income families cannot pay utility, public transport, housing and medical not to mention the meals. Smaller assistance will not help this group to tie over current subsistence-living problems.
(b) Middle-income families cannot make ends meet usually incurring credit cards debts and will have to downgrade. Smaller assistance will also not help this group tie over problems.
The urgency to help the lower-income group is there. The middle-income group too is in a quandary.
To the first group, the proposed $1 billion workfare assistance will help.
To the middle-income earners who are squeezed by dropping assets and the high costs of living due to double-charging on land, triple-charging on vehicles, etc, help will be welcome if there are not at the expense of creating a deficit.
How to collect just the necessary taxes and fees without burdening the middle-class with exorbitant excise duty on vehicle even after it was agreed that COE and/or ERP would be the final measures to cope with road traffic congestion.
We need leaders who can understand how the economy works and who will realize that by over-taxing and over-recovering costs in all kinds of fee increases, there economy will not grow and there will be no jobs.
Our great leaders, who keep trying to claim themselves as world best, our Ministers, MPs, grassroot leaders, who are supposedly scholars and our oppositions should fight for the citizens and not hide behind some hypes about welfare or wrong assumption that paying our highest ministers' salaries will prevent or reduce corruptions.
Many past assumptions behind our major government policies such as pointed out remain assumptions. I am sure Singapore can do with less and less extravagant spendings on concrete arches or more rain shelters or other big projects unhelpful to job creations to be scaled down or stopped.
I am sure given the will be many good solutions e.g. not to over-spend and collect only the necessary taxes without bankrupting the middle class.
The middle-income group is presently suffering from severe drop of asset values due to bursting of asset bubble caused partly by government's own mistakes in pushing up public sector salaries under Dr. Goh Keng Swee's doctrine...which is a doubtful doctrine on hindsight.
Citizens may argue ceaselessly and uncertainly among themselves on a lot of issues because of pros-and-cons and cannot come to conclusive views but leaders must surely have the larger perspective and visions to see larger picture and not use citizens' dilemma over necessary help to the middle class.
Solutions lie in not over-taxing the people, over-paying the public sector salaries or over-spending on extravagance. Both lower-income group and middle-income group stand to benefit if costs of living are not pushed up unnecessarily by these past wrong policies which should be corrected fast..if economy is to grow again.