atans1

“How has the pie been shared during the PAP years”?

In Economy, Property on 09/12/2016 at 4:47 am

Answer: The pie has grown but PAPpies are gorging themselves while ordinary S’poreans get thinner slices of a bigger pie.

In a response to a very negative analysis (sometimes sounding like something a TRELand nut would write*) https://www.breakingviews.com/considered-view/singapore-stresses-under-a-wealth-of-worries/, a Brad Bowyer responded:

As we head in to strong economic headwinds it would be good to reflect on how the pie has been shared during the PAP years.

In the 1970s a 4 room flat in Marine Parade was approx $20k to buy at a time when the median monthly wage was $300 and the PM averaged $3500 a month

In the 1990s a Marine Parade 4 room flat had roughly doubled to $40k , the median monthly wage was growing fast and at around $1200 had quadrupled and the PM averaged $70,000 a month a 20 times increase.

Today that 4 room flat equivalent is over 800k, a more than 40 times increase in 45 years, the PM get $230,000 a month a 50 times increase over the same time but the median monthly wage hovering around $4000 is only a 13 times increase in 45 years.

The PM has done well relative to the HDB pricing as his income has outstripped all increases in costs and he is nett much better off. For the average Singaporean however even though their nominal monthly income has increased in real terms their purchasing power has decreased and they are now 3 times worse of than their 1970’s bretheren in terms of an HDB housing purchase.

Where before you could pay off an HDB in a few years, have a single working parent family with several children and a reasonable life now a 2 income family would struggle to pay off their flat in their lifetimes and having even 1 child is a major challenge.

Singapore may have had economic success in the past in terms of dollars of GDP and be a great place for the top few % who take care of themselves but it has all been done at the expense of everyone else.

This trend of all the benefit only going to the few will continue unless the government changes to one that wants the best for all its people and not one that is focused on wealth for itself and only doing the minimum possible to keep its captive labor force fed and working and not much more.

As times get tougher and even those nearer the top start feeling more pain I wonder will we finally reach a tipping point where true change can finally be considered and made a reality?


 

*Is she seriously trying to compare a US$55,182 GDP per capita country against a US$2765 per capita one? The Philippines is growing , but a weak economy (partly due to a weal global economy) does not mean S’pore has become the Sick Man of Asia? And how come Peenoys still trying to find work here?

US liberal MSM caught lying again?

In Media on 08/12/2016 at 12:50 pm

From NYT’s Dealbook

The audacity of fiscal hype? – President-elect Donald Trump’s plans might not blow up the budget. “The proposed tax cuts may not have as large of an impact on the government’s finances as some analysts project,” U.S. economists at Deutsche Bank, wrote in a report. – Bloomberg

“If you don’t read the newspaper, you’re uninformed. If you do read it, you’re misinformed.”

What do you think of Denzel Washington’s comments?

Update at 5.08pm:

Salena Zito, writing in the Atlantic magazine, summed up Trump’s election campaign by saying: “The press takes him literally, but not seriously; his supporters take him seriously, but not literally.”

But can the press really stop taking literally what the president-elect says?

That’s quite a dilemma for the next four years

http://www.bbc.com/news/world-us-canada-38188074

Trump is bad news for S’porean mortgagors and property prices

In Economy, Financial competency, Property on 08/12/2016 at 4:36 am

As stated here, The Donald’s warning to US companies to manufacture in the US will only help accentuate two interconnected secular trends that are no good for S’pore’s growth prospects: slower global trade caused in part by onshoring (companies making more products locally).

Slow growth not good for property prices.

Next, Trump wants US cos to repatriate their money overseas (US$1trn is a conservative estimate) to make America Great Again. He’ll offer tax concessions in return.

According to a FT report, the repatriation of billions of dollars of overseas corporate deposits could rattle the global money market, where they constitute an important part of the offshore funding base: think Libor and Sibor.

This will affect S$ interest rates, causiing them to rise further then expected because of Fed actions.

Finally, with a fiscal stimulus in the US, Fed be more prepared to raise US rates. This will affect S$ interest rates, causiing them to rise.

So the vultures are circling and the Singkies with housing loans up to their eyeballs (if car loans and personal loans are included, up to their eyebrows) had better watch out. We’ll be joining Perth.

Will the 70% still vote PAP?