An article by a YP Activist
According to Mercer, Singapore is the 8th most expensive place to live in the world. Every year the cost of living increases – that is a dynamic of society and economics, one that can never be changed no matter what a government does. This is because of a concept known as inflation, in layman’s terms it’s how the purchasing power of money decreases over time because of increased circulation of a currency.
This is a problem that Singapore and many nations in the developed world face. Perhaps we feel the squeeze of this problem more than the Americans and Europeans do, simply because all our goods are imported. A vast majority of our food supply is imported from neighboring countries in the region, because of this, it is harder for the government to regulate the prices of this goods.
The pro-welfare groups of Singaporeans will call for increased spending ; a subsidy for the lower income groups! Put a price ceiling on rice! Let us not forget for one moment – the government cannot give what it does not first take. Certainly, the government can take from two places, the reserves or increased taxes on the people.
Let’s face it, our savings are finite, the problem may span infinitely, should we deplete our wealth on this problem or find another way to deal with it? Should the government tax the people to solve this issue then, bearing in mind the amount of unhappiness increased transport and GST costs have created, a tax to fund subsidises out of the question and superfluous by nature.
What the government can do is what it has always done, provide jobs for the people and leave the rest up to society. The higher income groups will have to contribute more to aid the rest of society along, for that translate to a more caring and giving society that we hope our Singapore will be.