How to cope with a reduced demand in the economy

I asked a question – how can the economy in Singapore deal with the drop in demand and keep the people employed.

Here is my proposed solution.

The government should pass a law to reduce the working hours by 30%. This will avoid a 30% fall in employment.

The business will get a subsidy from the government to cover 30% of the payroll.

This is similar to the Job Support Scheme, but it is applied to all businesses and extended for a longer period.

The 30% wage subsidy will apply to local workers only. This will encourage the businesses to give preference to local workers in any retrenchment exercise.

How does the government get the money to pay this wage subsidy?

It will eat into the reserves.

When the economy recovers, the wage subsidy can be reduced (and the working hours increased) until it gets back to normal.

The future “normal” may be a working week that is less than 40 hours (5 days X 8 hours). It could be 35 hours or 30 hours.

I have released the secret. Some spies will be passing it to the ministers who will take credit for this suggestion. And they will still earn their million dollar salaries.

Life is unfair. Singapore is like that.
Tan Kin Lian

 

 

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14 Responses to “How to cope with a reduced demand in the economy”

  • xoxo:

    Oh,very simple one.
    Just ask Ah Heng Kia to LOOT ANOTHER $100 BILLION N DISH IT OUT TO THE RICH MONEY-HOARDERS?

    Instead of putting money into the hands of needy sgs who need the money to consume,Ah Heng Kia give it the RICH who wont spend?

    LPPL.
    Economy stand still even with another $200 Billion???
    Ah Heng well schooled but dont know ECONS 101 ,DEMAND N SUPPLY THEORY.
    NO MONEY,HOW TO SPEND.
    Eh,i want to return the $600 in return for NO INCREASE IN GST AT LEAST ON EXPENSIVE MEDICAL BILLS.

    Ah Long wants to hand over ontact?
    Llike let sgs go chiakchow?

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  • Free money schemes:

    There are already so many caught cases of outright cheating of such wasteful free money.

    It is very easy to set up real companies to get these free monies.

    One suggestion, serious, not cheating, suggestion for anyone interested.

    Set up a company to employ your trusted retired old folks, as many as you can.
    Pay each one $3000, get $1000 from gov. Each gives you 3 trays of gold-plated eggs worth $2700. Job specs: post on TRE/social media, 10 times a day on your chosen topic and bias.

    All legitimate. Your personal ib company, funded by the wastefully generous gov, and supported by TKL.

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  • Yes Yes Yes:

    There are 24 hours in a day.
    8h work 8h sleep 8h recreation/leisure

    Our stomach has 3 parts.
    1 part for food 1 part for water 1 part for air

    As for the heart and mind
    1/3 thinking 1/3 reflecting 1/3 soul-searching

    With such proportions in life, the heatlth and wellbeing of Man is, by his nature, well taken care of.

    But Greed has completely overturned his life to the extent of sacrificing his health, in endless pursuit of material wealth, thus transforming him into a heartless, soulless and dishonorable social animal.

    Life has become totally unbalanced and meaningless.
    All because of Greed and Undesirable Desires.

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  • Protect Reserves:

    Employees should expect to get a pay-cut for reduced hours of work. Less pay is still better then being retrenched. Either everyone shares the pain of a pay-cut or retrench the redundacies, starting with fhe FTs. If the economy is bad and business is slow, the obvious thing to do is to scale down. State Reserves should not be used to shore up private businesses to pay for redundant workers when there is no work to be done. Or is this the govt’s way of shoring up the unemployment figures? In this plan, employers will still have to pay 70% of their employees’ salaries just to retain them even when business is not doing well. Employees get full-time pay for less hours of work.

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  • oxygen:

    @TKL, FOR A FORMER “BUSINESS CAPTAIN”, economists must be laughing at your naivety in this writing?

    How did you got there?

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  • tan kin lian is so cock:

    the problem exists.

    but tan kin lian’s solution is wrong.

    the cause of the problem is pap sexpert who allowed into the small island nation some 400,000 alien PMETs holding dubious degrees.

    dubious degrees and get employed as PMET in pap Singapore?

    how so?

    well pap kee chiu asked employers what they want. employers say, lyingly, cotton sheep is unemployable. in truth, what they wanted to say is cotton sheep is so much more costly to hire in pap Singapore than alien PMET holding fake ceca pinoy degrees.

    as everyone who has completed NSF NSR knows, all the so called brass who come out of saf talk only. none have a clue how even a S$ is generated in a sale.

    so with kee chiu as chief liaison officer with employers and sexpert as chief liaison officer with alien PMET employees, cotton sheep today faces hardship in own land of birth.

    do we care? ffff no. we don’t care. we actually hope sexpert imports another 100,000 cheap cheaperer cheaperest alien PMETs to satisfy keechiu demand for them.

    why? isn’t Singapore our country too?

    Yes, Singapore is our country. No, 61% has said sexpert and kee chiu are correct so how can 39% go against 61%? CANNOT.

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  • Prophetsor:

    As I prophecised long ago, yes it sounds cocky but I do not mean it, ONLY WHEN SINGAPOREANS SUFFER EXTREMELY will they wake up and demand for change.

    Seng Kang GRC is showing how stressed and suffering the people there are. Its demographic is middle aged and young family residents. These are badly hit and need more protection and they are forced to demand more from govt.

    Because majority still insist the lack of Transparency and accountability, if they suffer much more, then only they too will want change.

    If the Recessions continue and Retrenchments continue, change cums faster.

    Mark my words. Again I have made my prophecy.

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  • xoxo:

    everywhere,there are more and more billionaires ,from the freest democracies to the reddest commies?

    so,what exactly is happening when more and more peoples are also becoming impoverished?

    HOARDING IS THE ANSWER.
    HOARDING BY THE RICH NPOWERFOOL$,it is so obvious?
    even the $100 BILLION here is being distributed MORE TO THE RICH THAN OUR OWN JOBLESS AND NEEDY SGS WHO NEED THE MONEY TO CONSUME.

    AS STUPID AS GOVTS LIKE OURS CAN BE,THE MORE THE PEOPLE WILL BE IMPOPOVERISHED AND AGGREGATE DEMAND WILL TEND TO FALL,GO SOUTH as GOVT IONJECTIONS FALL INTO THE WRONG HANDS,THE HOARDERS.

    GREED AND CLANSMEN SOLIDARITY HAVE DESTROYED THE WHOLE WORLD EVEN BEFORE COVID.

    COVID IS JUST SENT TO REMIND THE RICH N POWERFOOLS NOT HOARD FOR THEMSELVES BUT TO SHARE THIS EARTH’S RESOURCES.

    IF THE RICH N POWERFOOLS PERSIST IN THEIR EVIL WAYS,MORE COVID TYPES OF DISEASES WILL COME OUR WAY….

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  • Subsidy:

    Subsidy is only temporary…a slow death.
    Need a better solution..
    Better to create more local demand..and help more business to survive..and save jobs.
    Give more e-voucher to local to spend on local shops here…

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  • NotMyProblem:

    Each time I read about report on imported infected cases, I always wondered why they could even past the departure airport!!

    I could only think the departing country wanted to get rid these patients, letting the receiving country take over the problem.

    Is our multi-ministry taskforce not realising this situation? Or it is as stupid as implementing the temperature screening in shopping malls and buildings for checking on an asymptomatic illness! What are they checking when this Covid-19 is symptom-less!!??

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  • What ?:

    Please exclude civil servants, they having it too gd. Reduce 30% working hours , still enjoy increment gd pay and even special bonus whereas outside pay cut , retrenched , bonus freeze, no increment,…..

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  • Riders need protection:

    There is no reduces demand in food deliveries.

    I perceive there is no Union for these freelancers and the supply is over abundant creating a delivery company market.

    I believe the riders need to be protected from being exploited.

    They now even have to pay to buy two tee shirts and a few bags for transporting the food items. And the riders are in fact advertising for the companies by wearing the gears.

    Riders also have to make sure their personal insurance includes or covers “for food delivery”.

    If there is no union , riders can be exploited .

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  • Liars:

    Tbe economy is like the quicksand. The more you struggle in it, the deeper you sink.

    The elites cant give up on the economy because that’s their life. Life to them but not to many, which they will soon find out if not already buried in quicksand. Bottom line is that for the elites to enjoy an ostentatious life with powerful rights or perks they would have to continue to push/sell the virtues of the economy which takes the life out of others( one of election sell is an inclusive society but the reality is far from truth with many indebted and unable to retire).

    How can you perpetuate a lie or deprive others of a life for some to amass great wealth and power and expect this can go on and on under heaven?

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  • Singaporeans First - Always:

    Keep it simple. It is a lot simpler and more effective to just start cancelling the employment pass of foreigners to force them to leave the country. Their job can go to Singaporeans.

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