Mmm.... let me see.
Transport Company A rise the wage of all their Workers by $100,
in hope of addressing rising cost. But lets be honest
here.... DO YOU THINK that Transport Company
A won't rise their fares inorder to 're-coup' their staffs
higher pay
So now everyone Beside those from
Transport Company A will pay more for transportion around
S'pore.......
Food Stall B employ 10 workers..... who takes Transport Company
A's Buses/Trains/Cab to work. Since Transport Company A rise their
fares..... Food Stall B also rise the Wages of their workers by
$100. And like Transport Company A, rise the price of their food.
So now everyone Beside those from Food Stall B, food prices goes up
for all.
Service Provider C employ 1000 workers who take transport from A
and eat at B. So their Boss being the 'kind' person that he is.....
rise their pay by $100.... then do the same thing like A &
B.
Ok..... so now -
Staff from A gots $100 - But pay more for B & C
Staff from B gots $100 - But pay more for A &
C
Staff from C gots $100 - But pay more for A &
B
Hi.... we are back to square one..... Lets rise Wages again
lor....
Staff D How?
The way is to curb inflation, or at least control it, there are
things the govnt can do...