Originally posted by gasband:
long term planning my fren, many many years ago, when they start collecting taxes, did they foresee that today, we will have an economic slump? .

Did the Government foresee that we will have an economic slump?
NO They went ahead in the early 1980's to implement CPF to hit a high of
40 percent - from both Employer's and Employee's contribution.

CPF was a "sacred cow" that no one was allowed to question - until the economic slump of 1987.

Several economists warned that the bubble will burst in 1985, and it will burst again in 1992, 1997 - and books were written about it; and did our Government take heed ?
NO and if our government did not have all those so called reserves, would we have come out of this economic slump better than most countries? .
YES -
Whatever goes up must come down - and vice versa.
Economic cycles takes it own natural course, and its recovery stage would have been inevitable, except that it could be accelerated by "divine intervention" - such as killing the "sacred cows", reducing the vain attempt at achieving 40 percent CPF savings that hurt the economy so badly.

It is Government's policies that can either screw the economy down or upward; but it is the Human Effort of the Citizens that make recoveries from Economic Slumps possible.
It is the Citizens' effort that make the economy work dun look at thing so short term lah, the increment, if u ask me to explain to you in details, i cant, they have all the details, but i am absolutely sure its for a long term effect on us..

That is the problem with our role as Citizen, whose responsibilities are reduced to being an Economic Digit in the wheel of Singapore's Economic Life.

None of us have enough details to understand what is in it for us.

Even the late ex-President Ong Teng Cheong could not, as much as he tried to comprehend the full picture of our Economic Wealth.

You certainly can be absolutely sure that whatever is done, will certainly have long term effects on us - negatively or positively, time has already begun to reveal our true economic strength.
I am glad you know its a time of saving in times of retrenchment. But instead of putting the blame on the government, why not check our own lifestyle to see where we can save? aircon, excessive use of electricity, tv, internet, handphone, cigarettes, taking taxis and many other stuff. shouldnt we consider cutting down on such expenses?.

Have you try to cut down on the amount of food that you consume, without losing the energetic efficiency that you have always had ?

how do you cut your consumption cost, when cost for the same amount of consumption has gone up by 33.333 Percent -when GST goes up from 3 Percent to GST 4 Percent in 2003; and by 25 Percent more - when GST goes up from 4 Percent to 5 Percent in 2004 ?

When you are seriously sick, and you must be hospitalized, will you cut or reduce the amount of surgery that you need - so as to reduce your costs as a result of hospital fees being increased ?

What will happen to the economy, when everyone reduce their consumption? What will happen to the taxi drivers, when less people take taxi; or when tv advertisements are reduced, as less people watch tv; or when handphone sales and usage time drops; or when expenditures on lifestyle needs are reduced, affecting fashion boutques, department stores, supply and manufacturing chain ?

With a reduction in consumption, who shall we blame when the economy contracts, factories shut down, department stores retrench, unemployment goes up ?
i have a fren whose whole family agree to cut down on electrical bills. they stop using the aircons and the bills went down by more than half!

Certainly the bills will be reduced by half, if you do not switch on those electrical appliances for half the time that you normally would use.

However, those bills that you expect to be reduced by half may NOT happen, when the unit rates of electricity goes up, and GST is applied.