atans1

Overheating economy: Gd excuse for VAT rise?

In Economy on 31/01/2011 at 5:11 am

Morgan Stanley thinks that the economy here is overheating. Other countries in this category are China, South Korea and Argentina.

Expect more FTs to dampen wage inflation. And a stronger S$. Taz the usual policy response from this government.

It’s also Economics 101 (although not Politics 101) to raise taxes. Higher VAT (after elections)? You heard abt the possibility of higher VAT here first.

Yes, I’m assuming the PAP will will the next GE.

About these ads
  1. PAP FTW! btw, always enjoy your posts! thank you so much!

  2. [...] Singaporeans are fed, up with progress! – TOC: Record investments = Negative wage growth? – SG. Quitters: Life in Singapore – Utopia or Dystopia – My very lo soh long winded page : the abuse of mei ling – Thoughts of a Cynical Investor: Overheating economy: Gd excuse for VAT rise? [...]

  3. If the economy is overheating due to economic growth by exports, a VAT rise would not help at all. If the concern is inflation due to overheating economy, a VAT rise would also do nothing since by itself it would raise prices.

    I don’t see any economic sense in doing so.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 209 other followers

%d bloggers like this: