In a recent keynote speech to the Economic Society of Singapore, PM Lee Hsien Loong talked about the strategy on economic growth. Full speech.
There are two points in his speech that I dislike:
a) He referred to "targeted assistance". This means writing rules on which gets and who does not get. These rules are usually arbitrary, complicated and unfair to those who are excluded at the margin. Those who benefit are happy; but those who are excluded are not. This divides our people and create a selfish culture.
b) He said that the government may not be able to boost the income, but they are able to boost the value of the assets. It is easy to inflate asset values, e.g. build a property bubble, but it has cannot be sustained and has to burst one day, with serious consequences. Even if it is supported at a high level, the younger generation will pay for it through high prices and 30 year loans. This strategy is bad for the people.
There are two points in his speech that I dislike:
a) He referred to "targeted assistance". This means writing rules on which gets and who does not get. These rules are usually arbitrary, complicated and unfair to those who are excluded at the margin. Those who benefit are happy; but those who are excluded are not. This divides our people and create a selfish culture.
b) He said that the government may not be able to boost the income, but they are able to boost the value of the assets. It is easy to inflate asset values, e.g. build a property bubble, but it has cannot be sustained and has to burst one day, with serious consequences. Even if it is supported at a high level, the younger generation will pay for it through high prices and 30 year loans. This strategy is bad for the people.
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