Image via WikipediaJuly 31, 2010
Speaking at the annual dinner organised by the Economic Society of Singapore yesterday, PAP Finance Minister Tharman Shanmugaratnam warned that “layoffs will continue in developed economies for at least another five to eight years or possibly longer.”
He also added that income disparity will continue and Singapore needs to provide incentives for ”foreign talents” to come to Singapore in reference to the PAP’s unpopular pro-foreigner and ultra-liberal immigration policies.
According to a recent Wall Street Journal, the relentless influx of foreigners into Singapore has depressed the wages of ordinary Singaporeans, increased the cost of living and led to an overall decline in the standard of living.
While Singapore economy has grown by an average 5 percent for the last ten years, the median wages of the average Singapore worker has remained stagnant at $2,400 monthly.
The income gap between the rich and the poor has also widen considerably and is the highest among developed countries after Hong Kong.
Mr Shanmugaratnam noted that “governments need to question existing policies, re-mould entire social contracts and prepare the ground for a new era of growth” and in order to achieve this, governments needs to be an “activist” state like Singapore.
“An activist state which intervenes with spirit, to promote social mobility especially among the poor. That promotes opportunities for its people, that frees up competition and that is able to sustain optimism in the future,” he was quoted as saying in Channel News Asia.
By Mr Shanmugaratnam’s definition, an “activist” state is one which is completely controlled and dominated by one single political party, broaches no dissent and is active in fixing the opposition as and when it sees fit.
