Originally posted by killstyle:
yes brings us back to the question: who benefited from higher worker productivity.
i would say its the rich capitalists, definetly not your day to day workers. they only get to enjoy thier fixed-and-ever depressing wages, which will only be depressed further once the Flood gates are open wider. the employers will justify it for cost competiton, ie they can hire an FT to replace singaporeans anytime.
By theory, everyone should have benefitted from higher productivity. On workforce level, higher productivity will translate to higher wages, and hence higher mSoL. On producer level, cost advantages increases, hence they become more competitive and get higher profits in the long run. On society level, aggregate supply rises and hence the country gets potential growth. This is followed by a rise in demand due to income increases, thus there is real growth too.

Yet, in Singapore, we do not observe such trends. The government seems to be biased towards the society and producer level by inviting FTs which have less demand for wages, so the immediate effect of a rise in domestic wages is not seen. So, you are right to say that the welfare goes to the rich capitalists, while compromising that of local Singaporeans.

The problem with FTs have been depicted many times in this thread already. FTs take higher pay than Singaporeans, are better valued, are easily supplied, and have other social advantages (eg no NS).

Still, in the NDP rally, PM pointed out that "FTs come to Singapore to create more jobs for us, so in fact they are not stealing jobs, but are further boosting our economy." The fallacy in this statement is that the FTs have no incentive to create more jobs for us, and even if they did, it would be largely profit motivated. There'd be transfers of welfare from the locals to the FTs, and if the FTs chose to leave Singapore, they'll take the cash and leave the dirt behind.

Thus, FTs can only work as an effective stopgap measure. To replace our gaps in the workforce, yes. But to permanently make FTs a part of Singapore to replace Singaporeans, 100% no.
