atans1

Tharman trying to tell jokes again?

In Economy on 11/11/2013 at 5:16 am

Singapore’s Deputy Prime Minister Tharman Shanmugaratnam said there is the need to ensure that the Republic continues to remain a country of low unemployment and good income growth for the average citizen and family, and in particular low income citizens. He was delivering the keynote address at the Ordinary Delegates Conference of the NTUC according to  CNA a few weeks ago.

On talking of good income growth for the average citizen and family, and in particular low income citizens, he obviously hadn’t got round to reading Department of Stats reports, and he certainly not Uncle Leong. Uncle Leong reported

Historical wage growth 1.3%?

Using data from the Department of Statistics, the historical annualised inflation from 1980 to 2012 was about 2.0 per cent.

So, since the historical average of overall wages was 3.3 per cent annually, does it mean that real wage growth over the last 32 years was only about 1.3 per cent per annum?

1% wage growth this year?

Since “The MAS expects consumer prices to rise by 2.5 to 3 per cent this year”, even if the increase in wages is 4 per cent as is being predicted now, the real increase in wages for the year may only be about as little as 1 per cent.

Gd wage growth? What gd wage growth?

On low income citizens being looked after, Uncle Leong pointed out or, rather, reported

… the median basic pay of office cleaners was only $800 according to media reports just a few days ago. On top of these low-wage cleaners, there are about 114,000 full-time workers earning less than $1,000 a month and about 460,000 full-time and part-time workers earning below $1,500 according to the latest available statistics. (Note: The Singapore labour statistics classifies those who work more than 35 hours a week as full-time workers – probably the “longest” part-time workers’ definitionin the world)

And this

… since the per household member growth was much lower at 13 per cent, does it mean that household income grew relatively more because there were more working members per household?

Does it mean that particularly for lower-income households, more members may have to work to make ends meet?

Uncle Leong also reminded us that the govt sophistry of rising wages includes the govt mandated increase in CPF rates

Inclusive of employer CPF contribution?

Moreover, since the statistics are including employer CPF contribution, what is the growth without employer CPF contribution.

It used to be that the statistics in the past were based on without employer CPF contribution.

Different from other countries?

Do any of the other 7 countries cited in the table for comparison include the employer’s pension contribution in calculating real income growth? I believe the answer is no.

After reading all these points raised by Uncle Leong , I doubt anyone would say that Tharman is correct to assert that  S’pore remains a country of … good income growth for the average citizen and family, and in particular low income citizens. It hasn’t been since the mid-1990s, when a foreign capitalist grumbled that in S’pore, “the fruits of [his] labour” (his words) went to his employees, including me, when I had the brazenness to tell him he was being greedy, when I argued with him on the on the methodology of my incentive scheme. Capitalists were screwed by the govt. How times have changed.

And if one wants to be fair to Tharman, one could point out that the purpose of wage increase is to keep pace with inflation, not exceed it by a wide margin. And that anyway, not fair to use average over such a long period as it distorts the underlying data.

But then, even the govt concedes that real wage increases have in the recent past been stagnant or PMETS, and especially for the low paid, so Tharman was tempting the fates (and Uncle Leong)  by making the assertion about good income growth for the average citizen and family, and in particular low income citizens.

Last year I blogged that Tharman was trying to do comedy. Looks like as though he’s trying again. He should learn from RI boy, Hng Kian: stop telling jokes when not cut out to do comedy. But then Tharman’s from ACS. And the Indian community, and liberals see him as the next PM: https://atans1.wordpress.com/2012/08/24/why-tharman-will-be-the-next-pm/.

So he has to try to get as gd as PM with his “mee siam with hum” joke.

  1. […] – Aljazeera: Singapore poverty in the spotlight – The Independent, SG: Poverty and ideology – Thoughts of a Cynical Investor: Tharman trying to tell jokes again? […]

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