11/14/2006

straw that breaks a camel's back

If there were to be anything that can break the camel's back, it will be this 2% GST. And it comes at a time when many people are sceptical that their lives are turning better. I dunno who advised for this move, it is an advice that will lead to tremendous ground shift.

11 comments:

Anonymous said...

Yes, redbean, it's already very tough to put food on the table. Additional 2% means another load of burden, though to the rich, it's not even a peanut.

redbean said...

it is now quite obvious that people are losing touch from the realities on the ground.

everyone has a conscious choice to do what they want to do. i have actually written an article on gst for the new paper but haven't submitted it. a little increment in transport fare is a little increment in transport fare. a 2% increase in gst is across the board increase. cannot escape.

gecko said...

Hi Redbean,

I've written on how the 2% increase has a multiplier/cascading effect on all costs across the board here.

redbean said...

hi gecko,

thanks for the link. i think the red herring is to recognise capital gain and to allow this to be treated as net gain. this, like you said, is serious.

and the multiplier effect, like you said, depends on the number of process layers. also the other point i am raising on this is that it cuts across the board for all goods and services. it is 2% on all things.

redbean said...

during the last property bubble, some people were extended a second loan because of capital gain on their properties. and when the bubble burst, their properties were half their values and the loans were enough to kill them as they were close to the residual value of the collapsed property prices.

gecko said...

Readbean,

You refer partly to the disaster marching down the years to come - instead of CPF, banks have the right-of-foreclosure on HDB housing loans. Already, banks have started to raise their interest rates from 3.5% to 5%.

Homeowners who have not done their due diligence are caught with their pants down and suffering for their mistakes of choosing bank loans instead of CPF loans.

Anonymous said...

Those who are rich will already have emigrated to other countries, leaving Singapore.

I am seriously considering leaving if I have the money to do so.

I have this impression that I know a lot of rich people who have already emigrated. Is there any incentive to get these Singaporeans or ex-Singaporeans to help those left behind?

If I do leave one day (though it is unlikely because it would be too expensive for me), the question is: Is there any incentive for me to help those who have no choice but to stay behind and be exploited?

DarkZ

Anonymous said...

I may or may not be able to save myself. But I can't help those Singaporeans who are naive enough to think that the powers that be are on their side and have their best interests at heart. The powers that be have not done a good job of managing this country, and yet many of their supporters are either unaware of or cannot accept this truth.

I think, at best, I can only save myself, but not those who do not wish to free themselves from political slavery. It seems they have effectively been brain-washed.

Dark

Anonymous said...

The post above is by me.

DarkZ

redbean said...

hi gecko,

the standard practice of banks is to lure customers with low interest for 6 months or so that slam in whatever discount they gave earlier by a hefthy increase later. this is sop.

the poor and desperate often got into this trap without much choices.

redbean said...

hi darkz.

welcome to the blog.

this sense of disillusion and despair is quite pervasive. but of course some are having a great time here, laughing to the banks and complaining not enough.

for those who are at the lower end, it is good to believe in fairy tales. that's why children are always happy.