When supply and demand are not elastic

The basis of a free enterprise economic system is based on the elasticity of supply and demand. And there must be plentiful of supply, ie choices, and plentiful of demand, ie people can afford to buy whatever they want. Without this elasticity, a free enterprise economy is doomed for self destruct. Today we are seeing more and more evidence of what an uninterrupted and skewed economy can become a living hell to many and heaven to a few. Hey, isn’t that a truism, that only a few will be in heaven and the rest be in hell? Take drinking water as an illustration. If the supply of drinking water is controlled by a mean owner, he can literally sell a cup of drinking water at $100 or at whatever price he demands. Everyone kwai kwai must pay. It is only the wisdom of time that govts of today imposed regulations on the distribution of essential and basic goods and services. Of course the temptation of free enterprise and the grostesque profits it can make often proved too tempting that devious reasons were used to perpetuate free private enterprises. The mantra of market forces know best and are best for buyer and seller is the wisdom of today. This is the biggest myth that the masses have been led to believe. For many economies, or many goods and services, the perfect market condition is just not there. The result is abuse of the free enterprise system. There are times when control and regulations must be imposed, with good intention as a prerequisite, to ensure a fair and equitable system for the people in general. A time has now come to upturn the concept of property speculation in a small piece of rock. Properties cannot continue to be speculated simply for profit basis. It is an essential piece of basic needs and must be heavily regulated. Unrestrained property speculation for profits only benefitted the few who will get richer at the expense of the larger majority. Making matter worst is that foreign speculators in the name of investors, came in to profit and disappear with their gains and leaving the locals with a baby that becomes a heavy burden for life. The madness of property speculation, of property as a good investment, has transformed itself into a dangerous animal to the demise of many average home owners. With so many negative factors that will only contribute to higher and higher property prices, a fundamental change in housing policy must be looked at now. It is no joke when a person has to work his guts out, for the rest of his life, just to have a roof over his head. It does not make sense anymore.

A second career in politics

Gilbert Goh has joined and left the Reform Party. Heard that he is now with another party. People like Gilbert, in fact there are many professionally trained and experienced people who have retired or in between jobs, should take up politics as a second career. The experience and wisdom they bring along after years of hard knocks will give them a more mature perspective of the expectation of life and what they can do for the people. And many of them are very able and could do much instead of waiting for another job. A politician is a full time job, a career and a worthy one, and a worthwhile one as an occupation. What are they waiting for? Get together some like minded people, ten or twenty and that will be a good start and nucleus for a new political party. Joining an existing political party is easier but it means accepting all the culture and history and philosophy of that party. Starting a clean slate with some people one knows better is more desirable and easier to move on without any old garbage. The young retirees are at the prime of their lives and have many more good years to go. What is there to lose when there is so much to gain?

Of moles and conspiracies in Singapore politics

The latest break away in the Reform Party saddens those who are hoping against all hopes that a reasonably able alternative party could appear in the next general election. The longing for a stronger alternative voice in Parliament was seeing some light at the end of the tunnel until this happened. Some able and young aspiring politicians quit, and in so doing dashes the hope of a good contest in the GE. Many speculations were floating around as to why the break at this critical time. Conspiracies, moles, inept or personality conflicts or whatever, all breeds nothing good for the cause of an alternative voice. The most distaste reason, if it turns out to be true, is to have moles working from within a party to bring it down. The country deserves good people, people with integrity, to come forward to serve the nation. Good people, whether from the ruling party or alternative parties, are good people. Politics may be a dirty game to some, but it should not be made dirtier by people with lesser integrity, to play the role of moles to undermine another party. Good and talented people must have self respect and not to be involved in such roles for the good of themselves, the country and the people. It is not worth it to compromise one’s self respect and integrity to do such dirty works for any reasons. For the moment this is all speculation. I doubt anyone with some intelligence and dignity, and worthy to be a leader and a man, or a woman, would stoop so low to become moles. The conflicts in political parties are inevitable as different personalities and objectives are involved. For whatever reasons, the interest of the nation and the people must be above all else, and all private personal interests. Let’s pray that we will have good and decent people in the ruling party as well as the alternative parties to be leaders of the country.

The Good and Bad News of inflation

January’s 5.5% hike in inflation is the second highest in two years. If this goes on every month, the inflation for the whole year will be probably 3 to 3.5%. Pardon my poor arithmetic. See the good and the bad news? Inflation is good news really. The higher the better. It means that the economy is doing very well and people have a lot of money to spend and can afford to pay more and more. Look at the high property prices and the high COEs, where got problem. The queues are there everyday.. For property buyers, the higher the inflation, the longer will be the queue as they will make instant profit after every purchase. The price will shoot up everyday. Buying property will be such a wonderful experience. A commentator, couldn’t remember his name, said that this high inflation is already expected. So nothing to worry about. It is all well planned and managed. Looking at how comfortable and happy Singaporeans are today, we can actually use inflation as a measurement of happiness index. The higher the inflation, the happier the people. At least 80% of property owners (HDB owners) will be praying that inflation goes through their flat roofs and all can be instant multi millionaires. Good for the coming general election.

Amidst chaos there is a golden lining

The Middle East is in turmoil. New Zealand’s Christchurch is in rubbles with many dead or waiting to be rescued. The Asian stock markets tumbled with many incurring huge losses. Everything is looking bleak despite a people’s budget to help the lower income earners to overcome the inflation beast. But not all is lost or not all is bad news. I just read that there is a profession that could bring in a revenue of $24.8 m over 7 months of work. This works out to be roughly about $3.5m every month. Not bad for a job when compared to our ministers earning that in a year. Now I can even say that minister’s pay is peanuts. If there is any job that I wanna be, this must be the job, a surgeon. This is the bill Dr Susan Lim charged to her patient, a royalty from Brunei. The bill has become a controversy and is fully reported in the ST today. It was also reported that the final bill, after discounts and whatever, is now about a quarter of the original bill and still unpaid. Even at one quarter the sum of $800k a month is still a princely sum. All I can say is nice. I wish I could have such an income. I am drooling and all wet thinking of the bill. World class medical treatment will come with world class bill for world class quality of professional services. You want the best, be prepared to pay for the best. Is this a Guinness Record? A $8 bill for a heart bypass must be a steal. Please don't complain about how expensive our public privatised hospital bills are. Be really grateful.