For incomes to rise, the economy must grow, Mr Lee said in his May Day message, making clear the centrality of economic growth which has been disputed by some who are worried about foreign workers and inequality, according to the local media. This is a repeat of, “Everyone would like their lives to become better and one important way of doing that is to make sure your pay goes up, especially with low-income workers. And for the pay to go up, the economy has to grow,” he had said in April.
So I’m looking forward to hear what the govt has to say about Uncle Leong’s assertion that he estimated that from 2000 to 2011, the real growth in the median wage excluding employer’s CPF contribution was only 0.4%per annum., (FYI, Singapore’s economy grew at an average of 5.9% annum from 2000 to 2011*). After all, the govt was quick to counter his comments about the rent increases on Ubin.
Somehow, I doubt that the govt would contradict him because in a paper sometime ago, the Dept of Statistics reported that between 2000 and 2011, real wages increased by 1.6% pa including employer’s CPF contribution. Uncle Leong juz took out the employer’s CPF contribution. After all, this money is not easily accessible, given the restrictions on the use of CPF money.
More interesting than Uncle Leong’s comments is that the NTUC minister (Zorro Lim) said:
“Wages can still go up despite slower economic growth.
‘This, provided that Singapore continues to get its policies right, said labour chief Lim Swee Say” on Saturday 27 April, ST reported.
True, this doesn’t contradict what PM said, but does imply that the link between wages and economic growth isn’t as clear cut as what PM says it is. And that it is also dependent on govt getting “its policies right”. But what if it gets its policies wrong (like HDB flats**, public tpt** and FTs by the truck-load).
We suffer while ministers earn their salaries and are protected from being sacked for incompetency, until the voters show their anger, and the ministers “resign”?
Cynical Investor
[Source]: Thoughts of a Cynical Investor (http://atans1.wordpress.com).