[18/07, 8:51 am] Close friend comments: RM10.879bil in cooking oil subsidies lost while shelves run empty: Who is accountable? | The Star https://share.google/BypSyzYJHKhjdcEbG
[18/07, 8:51 am] Close friend comments: Always difficult to help the newsies. Even our cdc vouchers scheme, people trade for cash
[18/07, 1:50 pm] ☸️ Danny 心:
Yes subsidies always skew market behavior and put pressure on govt fiscal budget.
The best is boost people income.
[18/07, 1:56 pm] ☸️ Danny 心:
CDC and GST vouchers can be seen as our dividend that we reap by paying increase GST by all population.
That's the surplus or profit from government Budget surplus every year - it is use to share with the population that is view as "shareholders" to lighten the burden of higher cost of living.
If we see it in this light, then CDC and GST vouchers will not be seen as subsidies.
If government budget is tight or economy not doing well, less or no CDC and GST vouchers - like this year, the CDC vouchers amount in fact decrease as compared to last year.
[18/07, 1:57 pm] ☸️ Danny 心:
It is true that some people abuse the CDC vouchers.
But for majority, CDC and GST vouchers do help to alleviate the cost of living and help the retail and f&b stores.
[18/07, 1:58 pm] ☸️ Danny 心:
Singapore cost of living is now among the highest in the World.
Even American business investing in Singapore also complaining.
[18/07, 2:05 pm] ☸️ Danny 心:
I think I understand your underlying concern of :-
1. Self sufficiency and less reliance on State - capitalism (LKY style).
2. Less reliance on socialism (less help from State).
I will later talk about both merits and demerits.
Capitalism in full drive Trump rebel - only elite benefits, 99% suffer. That's why Trump came out. World suffer.
So either extreme no good.
Balance capitalism and socialism is the best.
[18/07, 2:08 pm] ☸️ Danny 心: https://vt.tiktok.com/ZSX5NpcMQ/
Singapore GDP per Capita PPP - highest in the world US$156k.
How to interpret this.
Total income of the whole country divide by number of Singapore residents. (Adjusted for price differential).
Not individual or household income.
[18/07, 2:10 pm] ☸️ Danny 心:
Singaporeans many write in to this guy to explain why Singapore per Capita GDP PPP is the highest in the World, but their individual income no where near.
Because the state earn more than individual.
They are not fully redistributed to the individual.
More people getting more and more unhappy.
[18/07, 2:11 pm] ☸️ Danny 心:
But cost of living keep climbing.
So this is a danger sign
[18/07, 2:13 pm] Close friend comments:
But we are also averaging with the ultra rich flocking to sg. Averaging up with them, the figure can balloon up
[18/07, 2:14 pm] ☸️ Danny 心:
Yes, also partly that.
Later when I explain, you will understand.
$156,000 x 3 my family - we earn not even half.
[18/07, 2:17 pm] ☸️ Danny 心:
But State earning form the majority because of productivity from AI, robotics, automation and digitalization.
Individual ultra rich didn't contribute that much.
See GIC, Temasek, mas and government fund you will know.
Close to 2 trillion already.
[18/07, 3:24 pm] ☸️ Danny 心:
Especially so when fresh graduates and workers in the criss cross intersection in getting and securing jobs - as AI threaten their jobs.
Only some AI savvy and elites earn alot more.
But majority still struggling - but cost of living keep climbing - no thanks to Trump tariff war and Iran war energy crisis.
If our government don't handle this carefully - we may end up like Trump - capable government lose election - but populist party like Trump take over.
We will be dead.
Later I explain the phases of economic development - go hands in hands with economic restructuring.
Moving from the Continuum of capitalism into Middle path with socialism - as economy mature as government get richer and richer, but population majority fail to keep up with automation notably AI and machine take over manpower labor force.
This is a danger sign - govt need to move into equilibrium.
Cannot stay at capitalism - govt will lose power.
If move too much to socialism - country bankrupt.
[18/07, 4:03 pm] ☸️ Danny 心:
Oh in fact exceed $2 trillion.
1.5 + 0.5+0.4 - already $2.4 trillion.
GDP increase from $560 billion per year to $608 billions per year.
Government very rich.
Median salary and household income though increase - but not proportional.
Now many people worry about jobs because of AI + higher cost of living due to Trump tariff and energy war.
[18/07, 4:28 pm] ☸️ Danny 心:
Let me explain the Stage of Economy versus Economic strategy - to ensure a Sustainable Economies + Social stability + Political stability to a Country.
Stage 1 - Undeveloped
1. During 1965s after Independence - LKY times - State very poor, no money, negligible tax as people very poor, act as coolie..
2. Hence, Economic model - must be Capitalism - encourage individual enterprising, work hard, self sufficient, earn income - don't depends on State for welfare as State very poor.
3. Hence full capitalism become the primary Economic drivers.
[18/07, 4:29 pm] ☸️ Danny 心:
Stage 2 - Developing
1. As the Economy become better through trade, ports, individual enterpriess and business thriving - Nationalisation become dominant - eg. establishing Big Statutory Board to drive industrial functions by pooling talents, resources and money to build tech capabilities eg. NCB, TDB, Keppel Corp, TAS, Sembcorp, SIA, CPF etc.
2. Now LKY cabinet is not miser - some subsidies are given such as school subsidies, health subsidies, welfare for those underprivilege and disabled and elderly - to give them fishing rod to fish but also provide some financial assistance to tie through their immediate needs - to put food on the table.
3. So strong Capitalism (an antedote 90%) and Socialism (10%) - so LKY cabinet do have Compassion as Economy are doing better - not full Capitalism.
In a democracy, if don't have Socialism, those at the bottom of the rung - will throw protest votes - and PAP can lose power.
[18/07, 4:29 pm] ☸️ Danny 心:
Staged 3 - Moderate Developed
1. With Nationalisation mature - State technical competency very strong, private sector too weak - taxpayers pay considerable tax to sustain Nationlisation, Economy reach the Apex - cannot grow further - hence the concept of Corporatisation - to release the talents and the State Enterprise to become GLCs to fuel the domestic economy and venture into International market to further grow the Economy is essential --- hence Globalisation become the norm
2. Hence GLCs is formed such as NCS, Singtel, ST Engineering, SIA, Keppel Corp, Sembcorp, PSA Corp, Surbana, Comfort Delgro, SBS Transit, DBS/POSB etc etc.
The Elites and enterprising ones - pull far far ahead, many fall into the middle, the rest drop to the bottom rung.
3. Hence Capitalism proportion must shrink to share the fruits of Globalisation - else will end up like US - elites 1% billionaires dominate 90% of the economy, the rest 99% share the 10% of the wealth as Socialism is not in US DNA - Raw Capitalism - rich become very rich, poor become very poor.
Maga and Trump rear their heads, tear down Institutions, become populists, shun Globalisation that make them rich - because the elite 1% not willing to redistribute wealth to the majority 99% - the majority revolt and throw out competent Globalisation govenment and vote in populist Maga Government - Trump and mess up the World.
[18/07, 4:46 pm] ☸️ Danny 心: Stage 3 - Highly Developed
1. Now Singapore GDP PPP per capita - is the highest in the World US$156,000 per person - whereby Singaporeans individual median income is $5,775 per month or $69,300 per year or household income $12,446 per month or $149,352 per year
2. Singapore individual earn slighly less than 50% of GDP PPP per capita - though ultra rich will earn more - majority are State earned - looking at the Sovereign Fund that the State reap - more than $2.4 trillion.
3. So elites are indeed reaping a much higher income as AI, Digitalisation, Automation, Robotics increase productivity leap and bound, while many in the middle and lower rung falll further behind - because we have now reach an inflection point whereby the elites exploit AI, Digitalisation, Automation and Robotics proficiently earning big money and income - while the rest struggle to land fresh entry jobs and those at work struggle to learn AI.
4. Hence Capitalism must quickly slide to the Middle (Middle Path 中道) to ensure AI, automation will not lead to an elongated Economic and Social Status whereby the rich become very rich and the rest fail to catch up.
Socialism must slide upwards in the form of Government Grants and transfers such as GST vouchers, CDC vouchers and other transfer - especially when Economy are doing well - while majority did not get to share the fruits of the Economic Growth - while Government must provide the means of boosting lower and middle group capabilities of mastering their fishing rods - AI capable skill to help themselves to feed themselves and not fully rely on the States.
Only when the lower and middle group acquire such capabilities as before - can Government not provide more socialist transfer of wealth - especially when the Economy is now under stress from higher cost of living from Trump's tariff, energy war + the double whammy of AI disruption.
Government must do the AI transformation and Geopolitical trigger economic transformation well - to ensure the top, middle and lower group regain equilibrium.
Else a capable government could lose its power and up come the Maga like Trunp populist government that will destroy Singapore.
No joke.
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