The deception of pay hike

How many of you really become richer when there is a pay hike? I am referring to the normal average Singaporeans, not those whose pay hikes are in the hundreds of thousands or millions. Many will feel richer for a moment but whether they are richer or poorer will depend on the subsequent events that follow the pay hike. Are there more hikes in fares, charges, rentals and services? If they do, then the pay hike could all be absorbed by the subsequent hikes of goods and services, or in short, inflation, unless of course the hike is much more than real inflation. Many could be poorer after the pay hike when the higher cost of living eats up more than their hikes.

There is also the reverse, when no pay hike can make one richer. If the cost of living can be lowered like the cost of goods and services, the same dollar can buy more, and thus makes one richer.

Many people have been robbed of hundreds of thousands or even millions of dollars by the runaway property prices. Buy a property at $300k instead of $500k, or $600k instead of $1m. The amount of instant losses is huge beyond comprehension and would wipe away years of savings and stinging.

Don’t be too happy with your pay hike.

In the early 70s, a $2k income could buy a 5 rm flat, a car and bring up a family quite comfortably.


theonion said...

In the 70s, you could get a house in Seletar for 100K and etc.

How many people were earning 2K at the time, average wage was I believe S$1K or less.

Char kway teow was S$1 etc, however, no overseas trip, no hotel stay,not too many went to UNI, etc.
we had black and white tv shows etc.

You are not comparing like for like, further, because relatively few people were graduates (less than 10%), graduates were a scarce commodity.

Just look at the inflation caused by the easy monies poured in by the West during the Vietnam war.

I believe you had enjoyed the fruits than.

Chua Chin Leng aka redbean said...

Then the debt burden was more bearable. Today, the debt can be disastrous. Whatever increment is mostly eaten up by inflation.

The inflation cannot go on and out, with printing or more money. The US and Europe are paying for this madness. We will be next.

Anonymous said...

The black and white television in the Seventies costed a bomb, many had to watch the limited broadcasts that closed at 11pm at community centres or at the homes of those that had them. If they are accommodating of course.

Me lived in a village then and total family income was no more than $1K for a family of 7. Compared to now, we were living in a piece of land of one and a half acres with as many rooms as we had built. And we made the land very productive with household farmings.
POOR, but very carefree and happy.
Misses the good old day all the time; those were the days whence we lived liked humans.
Now, we are no better than a digit, at best, a digitized human.


Singapore-born citizen said...

In the '70 I live in kampong and being poor but happy and there never short of fruits to pluck for free..like Guava, Soursop,rambutans,jumbu(few types),etcs. Now practically zero! Even birds have to share our food at coffee shop or hawker centers . Type of birds are limited also!

Chua Chin Leng aka redbean said...

Hi Singapore born citizen, welcome to the blog.

Today we are all treading on a high speed treadmill. And the speed is going faster everyday.

Anyone who cannot keep up and try to stop will fall off, and both sides are big longkangs.

Our lives are dictated by the economy. No time for leisure, no time to make babies. Sure, some escapees during a holiday but back onto the treadmill after the holiday. The ah kongs and ah mahs are also on the treadmill.

Chua Chin Leng aka redbean said...

I think I have welcomed theonion before. Just in case I have dementia, let me welcome you once again: )

Matilah_Singapura said...

The cost of living cannot be lowered if the money and CREDIT supply is ever-increasing.

Sorry, no can do.

Matilah_Singapura said...

Wah lau eh. Now got "holier-than-thou" Singapore Born Citizen leh.

Xenophobia, it seems, has no upper limits!

Anonymous said...

MS...asking to be screwed....

Matilah_Singapura said...

Hey fuck face, bring it on anytime. Let's see your best shot? Or better you go home now and suck your mother tetek! Bwahahahah...

Anonymous said...

Not Holier-than-thou and not being Xenophobia but irritating overcrowded Foreign Trash lah