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.

  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.

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