This is the new contradiction that is keeping Singapore ticking and its
GDP growing. While Thomas Friedman is grappling with the combination of
exponential, digital and combinatorial growth in technology, high brow
stuff, our govt is approaching economic growth in another way, simple
cheap labour. Some called it KISS, ie keep it simple, stupid.
The equation is simple. One man needs a bed, 3 meals, a little extra
like alcohol, a little entertainment, a little sex, clothing,
transportation, communication, medical etc etc. Increase to 4 men you
can add in a roof, a car, education for children, insurance, banking,
leisure and all kinds of services for a family. Multiply these by 1m, by
2m, by 6.9m, what would you get on an exponential, digital and
combinatorial formula? Add the tax or levy elements to this, and you
have a colossal sum of money flowing and criss crossing in many ways.
You don’t need the brainy and highly intelligent talents. That is only a
red herring. The consumption of goods and services by big numbers of
lowly skilled and cheap labour will generate enough economic activities
to keep the GDP growing. No need to think too hard, just keep adding the
numbers to keep the trick alive. The population will keep the economic
activities winding non stop. The additional headcounts are for growth on
top of organic growth. Just keep adding and enjoy the multiplier effect
of consumption without having to think too hard, to be creative,
innovative or productive.
It is a simple number game. Who cares about productivity if growth can
be achieved by simple addition of numbers, of people? The productivity
of low skilled labour can fall or stagnate, no sweat. This can easily be
overcome by quantities, not in the work they do, but the bigger
picture, contribution to the overall GDP through all the other services
and consumption.
No need to be too clever, no need to work so hard. Why bother with high
technology, with frontier science, with KBE? Many would have forgotten
what KBE meant. That is why the call not to pursue tertiary education
but to be hawkers and labourers, as cogs to the matrix of growth. Low
productivity but in increasing volumes would still lead to higher GDP.
It is elementary Watson. The more cogs you have, pronounce as cocks, the bigger will be the GDP.
9 comments:
Macroeconomic stats are the easiest to fake, and interpret suka suka as to benefit the architects of govt economic policy.
GDP figures are de facto "bragging rights" for a cuntree. It is easy to manipulate the figures so that they reflect "good governance".
Anything to fool the Sheeple is a wonderful tool for the government beating a path to victory in the next election. Or so they think :-)
Knn, are you saying the govt is fooling the people with statistics?
Think so leh.
Increase in productivity of SMEs in Spore? You must be joking.....the so called grants or subsidy has been used to off set rising operstin cost instead. Taxpayer money was wasted.
Is the following true?
---------------------------
Number of Members of Parliament Increase;
Productivity in parliament decreases.
Number of Millionaire Ministers in PAP government increases;
Productivity of PAP government decreases.
At some point the law of diminishing returns will set in. Imagine you are a farmer with 10 good cows producing 1000L of milk per day on a 10 hectares land. Adding an additional 10 good cows will not produce 2000L of milk per day but something less. The competition of grass will upset the cows and in total they will probably only produce 1500L of milk. If the farmer is adding another 10 bad cows, the result will be self destructing as the original good cows will contract the disease from the bad cows and they will all produce much much less milk.
One do not need to be a genius to understand that just by doubling the horsepower of a Ferrari will not double the top speed. To double the top speed, it needs a complete overhaul, remodelling, reinvention from every unit that makes up the super car.
As I, and many others of the Austrian School of Economics have predicted. Money printing and turning CREDIT (debt) into money-like substitutes leads to CRISIS, DANGER....and OPPORTUNITY.
Why Singapore's Economy Is Heading For An Iceland-Style Meltdown
Hooray! Very soon great swaths of "distressed assets" for sale! Fuck the government's bloody bullshit macro economic "truths"!
Living Well IS The Best Revenge!
P.S. redbean, you might want to comment on this article. The crash is coming. You'd better say something ;-)
Iceland style? Most likely the japanese style which after twenty years still remains under water.
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