This is according to a Duke University/CFO Magazine survey. The increase, after correcting for inflation is only 3.5%. Whose salary is the survey using? A driver or a sweeper?
Another problem is that productivity increases by only 1.2%. Such a huge discrepancy is a sign of trouble. This is untenable. How can wage increase outstrips productivity by 200%? It is like someone spending $3.50 but earning $1.20. Something must give.
"Real wages" mean the overall purchasing power of the individual. We all work for a universal medium of exchange-money. We use that money to buy stuff to live. Therefore if the prices of (some) of the stuff we buy DROPS, our (personal) purchasing power increases, which translates into an increase in real wages.
ReplyDeleteAlthough a lot of stuff is getting more expensive, a lot of other stuff is getting really cheap—especially good made in China, like appliances, electronics, clothing.
The high degree of productivity coupled with extensive INVESTMENT in industrial sectors, in India and China benefit EVERYONE who uses goods and services which come from those countries. They are able to produce consumer good and services for MUCH LESS, therefore RAISING the roodseal wages of workers in the countries who's people buy goods and services from India and China.
The customer wins, the producer wins. The govt loses because cheaper good mean less tax (GST), however that may be offset by people spending more. Govt also "loses" if people SAVE (i.e. hoard) the money they save by purchasing goods from ChIndia.
These "hoarders" buy stocks and real estate, or lend out their money, or directly invest in businesses, (i.e. increase the "productivity" of their stash) and over time massively increase their wealth, thereby shielding themselves further from the sticky fingers of govt pick pockets. (i.e. the wealthier you are, the more freedom from govt you can choose to have)
Have a look at what kids in US expect to earn.
ReplyDeleteNow that's what I call "confidence" :)
Ah, how sweet it is to be young and full of spirit!
Half of ceos in fortune 500 companies earned more than SGD 16 million in US. No wonder our officials have the thinking they are underpaid. We should peg their pay to the top 5 % of american ceos for that matter, to stop the envy and the feeling of being underpaid. No kidding, this is a valid suggestion.
ReplyDeletei support anonymous' suggestion. let's raise the wages to the US equivalent. afterall we are also number one in our own ways. everyone of our top talent is on par with the US or better.
ReplyDeletewe should not shortchange anyone of them.