PAP’s Half-Baked Attempts To “Solve” The Problems
But more importantly, what solutions have the PAP given to resolve this?
According to the PAP, they introduced a “3-Year Transition Support Package will help businesses restructure and share productivity gains with their workers in the form of higher wages“.
The three initiatives that they introduced are the:
- Wage Credit Scheme – to increase wages
- Productivity & Innovation Credit – to increase productivity
- Corporate Income Tax Rebate – to reduce costs
The PAP is a very funny creature – so after it has created problems to break the equilibrium economic cycle, it decided to create new schemes to stem the tide of the problem. In other words, the PAP’s mantra is: let the problem continue, just make it less destructive – so that they can prolong the problem and allow themselves to earn more.
However, as I had explained, the Wage Credit Scheme is ineffective as companies are more likely to take advantage of the additional funds provided by the government to increase the wages of workers whom they had already planned to increase and this would not help to increase the wages of low-wage workers, if there were no plans to increase their wages anyway. Also, this in effect becomes an easy way for the companies to increase the wages of the workers without having to fork out their own money, which they could then add into their profits – more importantly, again, who owns the largest companies in Singapore and who will earn the profits?
Leong Sze Hian had also explained how the Productivity & Innovation Credit had also not worked as productivity had actually declined last year.
Finally, why would the government provide a corporate tax rebate, when it could directly reduce rents anyway, since the government is the one who had caused the rents to spike unnecessarily? It is frankly quite pointless to create another scheme to plug a problem, when it simply creates additional layers of a problem, instead of fix the problem.
What the PAP has done is to not create solutions that tackle the root of the problems. Instead, they had chosen to only tackle the symptoms. But what is more important is this – you have to understand why the PAP is more interested in introducing these half-baked schemes to resolve the problems. When you understand them, you might understand why they are so half-hearted.
You see, where does throwing more money from the Wage Credit Scheme, the Productivity & Innovation Credit and the Corporate Income Tax Rebates goes to? It goes to the companies. And who owns the companies? Precisely. Because you see, if the PAP were to introduce schemes to actually help Singaporeans, will the PAP benefit? They won’t, so why bother? I will explain more about this in just a while.
At the rate that the PAP is going, I am just afraid that the Singapore economy would collapse under the PAP. Ironic, isn’t it? The PAP claims that if they are no longer running the country, the Singapore economy would collapse. But it is precisely because of the PAP’s short term focus on their short term gains and profits that will precisely lead Singapore towards a path of demise!
If the PAP continues to operate on a broken imbalanced economic model, at some point, the economic model will no longer function. They can keep bringing in foreigners, as they have, to replace the lost purchasing power and lost consumer spending, but can this be sustained in the long term? You either plan to replace the consumer base in Singapore with a strong foreigner base which does not threaten your power or you anger enough of your citizens such that they would vote you out of government. Which do you think is the path the PAP has planned for?
Please note that there are 5 pages to this article:
Page 1: PAP’s Big Four Profit Strategies
Page 4: PAP’s Faux Solutions to Fix the Economy