Just read the news.
I’m confused by what Tharman said. He cautioned that
companies giving more wages to help workers cope with higher cost
of living will lead to another round inflation.
But he also pointed
out that the lasting solution to inflation is to continue with
efforts to help workers upgrade their skills and earn better
wages. This will not lead to inflation
meh?
With the rising
cost of living, how to survive in SG huh? Govt giving limited help.
Companies now also being warned not to give wages increase.
; (
giving more wages = increasing your salary in your current
job
earn better wages = increasing your skills to move to better
paying job
Tharman is correct that increasing salary is a short term
solution that will lead to more inflation. More salary means it
will cost more for business and thus, they will charge more. When
they charge more, workers demand more salary and then the vicious
cycle spirial out of control, currency depreciates and very soon,
it'll be the end of this little red dot.
The way to control inflation is not by throwing money at it. It
is by trying to control interest rate, reduce the cost of doing
business and limit the increase in cost of living by enforcing
price control on basic necessities; of course, cutting ministerial
pay would definitely help but it has more political milege than
economical.
Sadly, our government is doing none of the above.
