atans1

Weak productivity: PAP’s Frankensteinian monster

In Economy on 01/02/2018 at 7:16 am

When I read the u/m from Rana Foroohar, a FT columnist that I love to hate (usually so pretentious and full of BS and who refuses to accept that Trump the bum is doing some good), I couldn’t help but think of the S’pore economy which the PAP administration claims it created:

— looking at the “supply side”: all those FTs;

— “capital intensity of the most innovative sectors – like pharma and high tech – is quite low”: pharma and high tech are high on the PAP administration’s wish list of investments that we must have;

— “the most digitally advanced industries – again, software, biotech, etc – aren’t the biggest employers.”: throw in the oil refining and petrochemical industries and that describes to a “T” the industries that are paid and paid to come here; and finally

— “The industries that are labour rich – retail, healthcare, education, public sector – are both tech and productivity poor.”: think of our huge finance sector (13.1% of GDP in 2016). The “retail, healthcare, education, public sector” are all part of any modern economy, so the PAP administration’s can’t be faulted for encouraging their growth.

Here’s what the FT columnist wrote:

According to James Manyika, the head of the McKinsey Global Institute, weak productivity – a real mystery in a time of such dramatic technological change – is down to a cocktail of issues that we aren’t looking at in the right way. First, demand is weak in most parts of the developed world, yet economists studying productivity typically look more at the supply side. Second, the capital intensity of the most innovative sectors – like pharma and high tech – is quite low relative to the past (they just don’t need big factories or expensive equipment). Third, in the past, big productivity gains were seen when the biggest employers made large tech jumps. Yet today, the most digitally advanced industries – again, software, biotech, etc – aren’t the biggest employers. The industries that are labour rich – retail, healthcare, education, public sector – are both tech and productivity poor.

FT

The kind of economy we have

— lots of FTS;

— with capital-intensive hi tech, oil refining and petrochemical industries that don’t need much labour; and

— finance which is labour rich, productivity poor,

was created by the governing party, the PAP, which has ruled since 1959 this de facto one-party state.

And which said party is louding KPKBing has a productivity problem

Which begs the question, “Do PM and his team deserve their millions?”: At 8.38 pm January 8, PM’s pay would pass Ah Beng’s yearly salary.

After all, they created an economy that is inclined towards low productivity.

What do you think?

 

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  1. “retail, healthcare, education, public sector” plus finance, real estate and construction, these are industries that directly benefit from govie’s policies and regulations, operate under some shape of sanctioned oligopoly (think of banks) or subject to cronyism. All are labour intensive, have low productivity and some are rent seeking,. The PAP likes them, they are made dependent and can be assured of giving support.

  2. robots to replace 50% of humans in the workforce in every country ?

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