Why are elites’ million-dollar salaries not pegged to productivity growth but fake GDP growth? It is because they really don’t have any idea of how to increase productivity to generate real economic growth. 😦
This is how an IPS intern aptly described PAP’s productivity failure: “Singapore has been in productivity wilderness for the last 40 years“.
PAP leaders really know nuts about productivity besides throwing billions at schemes and slogans to impress foreigners and the public. And PM Lee appeared to have only realized that the only way to increase economic growth was by increasing productivity a few months after his papa LKY had died in 2015.
However, PM Lee was wrong to stress that Singapore depended on productivity growth only in 2015 because we actually needed this every year since decades ago. If the job of PAP was not “very tough to do”, why should they be earning the highest political salaries in the world?
What PM Lee said shouldn’t have shocked anyone because he had believed in all the propaganda BS about our high GDP growth. Recall that the first thing he did after becoming PM was to increase new citizens and PRs by almost 400,000 during the subsequent 5 years, ie increased headcount to create economic growth.
PM Lee was following in the footsteps of his predecessor Lau Goh whose economic growth model also relied on cheaperer foreign labour.
Generating economic growth through foreign labour input “carries a high social and political cost” as well as other warnings had already been sounded 3 decades earlier by PAP ministers Richard Hu, Tony Tan, etc.
PM Lee could choose to ignore them but he should have listened to his own papa who in 2010 had acknowledged that his son’s government had been incompetent.
Despite PM Lee finally acknowledging that PAP had “maxed out” the easy ways of driving economic growth in 2015, real economic growth remains illusory today. 😦
To mitigate the negligible population increase this year, PAP elites have decided to employ a new ‘growth’ strategy: drive up GDP figures by increasing costs. (Elites’ super bonuses are tied to GDP growth.)
GDP provides a measure of the monetary value of the goods and services. By ramping up costs, eg water tariff, petrol duty, COE (through zero car population growth), etc, businesses faced with increased costs will have no choice but to increase prices. (Supermarkets, coffee shops, etc have already increased prices.)
Calculating GDP based on spending or income approach produces the same result. But a higher GDP in this case does not mean increased consumption/economic activity but higher prices as a result of PAP-induced cost increase.
(For more than 2 decades, fake GDP growth mostly resulted from increasing property prices through population increase. Increased rental costs are eventually passed on to consumers by raising prices of goods and services.)
Our high per capita GDP is totally meaningless to ordinary Singaporeans. High GDP ‘growth’ has all the while been an illusion created by PAP’s propaganda to maintain foreign investors’ confidence.
Because of this fake economic growth, an increasing number of citizens are struggling and the government has no choice but to increase “grants, rebates and subsidies”.
In which high per capita GDP country does the government need to perpetually increase assistance for the majority of citizens? Which wealthy country does one see elderly citizens working in menial jobs in every corner of the country?
The PAP since Lau Goh became PM has no idea of how to generate economic growth. Singapore is in trouble. 😦