5/18/2008

We don't need subsidies

Just like we don't need help from the govt, we also do not need subsidies if the real cost of inflation is arrested. Many of the high costs can be attributed to inflation and 'market value.' Both need not be the case and need not add to the high cost of living. One angry example is the high price of HDB flats, priced at a subsidy to market value or market price instead of the actual cost of building the flat. And the govt feel damn good, and expect the people to feel damn grateful because it is giving the people a subsidy. When has this mindset of really serving the people's interests been changed to one where, 'the people would be worst off without the govt subsidies and have to pay real market prices' while allowing market prices to runaway? HDB pricing is not the only area that the people are made to pay much more than the cost of goods. Medical services is another sore point. Why must HDB insists that medical practitioners pay market rate rentals of space that were built donkey years ago at a fraction of current day prices? Essential services should be charged or cost at as low a price as possible to keep the price of such goods and services down. Why can't the govt identify specific essential services and charge them at minimum profits so that the service providers need not pass the cost to the consumers? It is time to shut those who keep trumpeting about how much subsidies are given to help the needy. They are not subsidies. The people are charged with inflated market prices with a little discount called subsidies. The high cost of living must be tackled at its root. Many services and goods must not be treated simply as a business to make profits. In certain areas, making obscene profits from the users is criminal or morally unacceptable, disgraceful. As costs keep going up, cost of public transport and many essential services must be brought down to help the poor communities. The high transport cost is going to take its toll on the tertiary students and their parents. These are the country's assets, young people being educated to come into the workforce and having to pay like hell to go through their years as students/undergraduates without any income. Do away with subsidies like clamping down on those who are scheming to help the people with their obscene schemes when the people become worst off and may not even benefit from their schemes.

8 comments:

Anonymous said...

Rubbish!!

The costs of goods and services are determined by market forces. It is economically unhealthy to go against market conditions. It is all to do with supply and demand. I have many properties and I do not want the govt to interfere with their market prices.

Subsidies are OK!!!

Anonymous said...

Supply and demand my ass! Everything is controlled by the bloody mercenary pap government.

Anonymous said...

To OP,

Actually, the more the government intervene, the better it is for you.
As long as the government limit supply, your properties value will continue to go up.

redbean said...

for the sake of the properties that i own, i shall make a big sacrifice and agree that we should allow the prices to be artificially propped up by market forces or supply and demand.

who determines supply and demand for HDB flats? the people queueing for HDB flats?

Anonymous said...

All the help and subsidies they are dishing out makes them look good and compassionate, but are already factored into the GST, price, rental and other increases made earlier. As so many people said so many times before, when they give you a chicken drumstick they will take back one whole chicken sooner or later. Don't be happy.

Matilah_Singapura said...

Subsidies to "help people combat market forces" are unsustainable. Also, you are taking potentially "productive" capital and squandering it on unproductive uses.

It's far better for the govt to REDUCE taxes, than for it to tax, and then re-distribute the tax revenue in the form of subsidies.

This idea of running huge budget surpluses is a nonsense. All huge surpluses do is give the state more economic power, at the expense of the peoples' economic power.

redbean said...

what market forces?

Anonymous said...

Those with properties will not want the Government to interfere because of the upside potential now still alright, but in a property slum I am sure they will sing a different song.