myth 65

'The income gap will only get wider' What do you understand when people say that the income gap will only get wider and nothing can be done about it?


Speedwing said...

The income gap is the difference in take-home pay between the lower income group and the average income of the population.

Singapore is in a very unique position. The higher income group and the middle class earn a very reasonable wage and they have a very comfortable standard of living. Unfortunately, because of the huge source of foreign workers from nearby countries who are willing to work in Singapore for next to nothing, the lower income group of Singaporeans have to compete with these imported labour. With the cost of living always on the upward trend, and the income of the lower group not keeping pace because of the cheap imported labour, they are finding it hard to maintain a reasonable living standard. With the rich and the middle class steaming ahead, and the lower income group lagging behind, the gap will continue to get wider.

Just my 2 cents worth. What do you think redbaen?

redbean said...

hi speed, is that the official definition or the only definition of income gap?

there is also the comparison between the lowest group against the highest income. by using huge averages, they only hide away the hideous parts.

whatever definition, the gap is obscene. and statistics used is more obscene when the top 10% group's income is about 15k a month when in reality many are earning above 50k or 100k a month.

it may be better to let the gap widens faster and greater and the disparity becomes more glaring. then the snap will come that much quicker.

Elfred said...

Huh... you guys are still kicking... Hehehe... Nice knowing that.

Anonymous said...

So what can you do about it ? The able ones will always command a premium for the skills and knowledge that they have. You can't fault them for that. Unless you're thinking of the Robin Hood method to narrow the gap, which is totally unacceptable.

redbean said...

hi anonymous,

if a person is working in his family business, he can claim that he is the most able person and can pay himself any amount. only when he goes out and apply for a job then he will know whether anyone is willing to pay him what he claims he is worth.

he might not even get 10% of his self proclaimed worth. may not even be employable.

redbean said...

hi elfred,

long time no see. your civil service job keeping you very busy huh?

Anonymous said...

You're right. A person's worth is the highest someone is willing to pay him. In the case of your hypothetical person, his worth is whatever he pays himself, if he is the owner of the business, or whatever he's got his dad or whichever relative who owns the business to pay him. It doesn't matter if no one outside the company thinks he's worth that much, unless of course the business fails and he's forced to eat humble pie :)

redbean said...

true, true.

Elfred said...

Kinda not so busy, but not so mood. That's all.

The workload compare to private sector is kinda... ok.

I just hope they can "correct" the treatment of we people who comes in at this age with such life experience outside civil service...

My pay is way too absurdly low... in my fair-est view, which is highly reasonable.

My application for increment has been rejected... then PM said they are going to adjust...

I don't know.

redbean said...

ha elfred,

nice to know that you are now gainfully employed. as for pay adjust, they will adjust the lower pay employees downwards and the big fat pay employees upwards if i can remember how it works.

the logic is that increasing the lower pay employees' pay will be multiply by hundreds and thousands. but increasing someone who is making millions is only 1 time or maybe a handful. absolute sum is lesser. so more impact to increase the higher income group than lower income group.

then they will say they can't do anything to close the income gap.