Who am I? What am I? Where am I? Where am I headed to? I really don't know. RNFI. Really No F**king Idea. A cynic, an idealist, a person with ideas, but NATO. Am I? I really don't know. RNFI. Really No F**king Idea.

Thursday, April 17, 2008

The Grasshopper

inflation is now, more than ever, a very real problem. even the aunty working downstairs know that while the price of everything is going up, wages are not. especially for those who are not highly educated and without a specialised skill.

many people then blame the government. saying that, even if the factors leading to the increases in price are beyond the government controls, the government can and should do something to lower the cost of living. but the government will not. this is not a government that will take steps to distort prices.

however, what the government will do is to give financial assistance, distribute some wealth. it has done so in the form of growth dividends, GST offset package and even WIS. the government claims that the amount of money that it has given out to the lower income is more than enough to cover the increase in prices. of course, the caveat is that this ang bao can really only cover the increase in prices of basic necessities, not luxury items. and it will only help the lower income if they do not spend it all at once, but rather, save what they have received and use the money to pay for their living expenses. however, someone with a lower income has a higher propensity of spending a windfall within a short period of time, thus leaving him with little to tide him through the rest of the year. so this ang bao from the government won't help him much and he will still have to deal with higher prices on his own income.

what can the government do about that? is it the government's fault that people spend what is given to them quickly rather than use that money to offset the increase in prices? i am not saying that what the government has done will solve all our problems. many of our material aspirations will still be dampened because of the rising prices. however, to foist all our problems onto the government is irresponsible. we, ourselves, also have to think of ways to solve our own problems, fulfil our dreams.


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