Give with the Right Hand and take back with the Left
Hand.
At first sight, the ERS seems to be very attractive.
You put in $50 into the CPF, and can collect back $400 in ERS that
can be converted into CASH.
However, is this $400 enough to offset the extra ONE PERCENT
increase to the GST
?
On the average, we spend $10 a day (lunch and dinner) on meals, at
least another $5 on MRT and Feeder Service, another $5 on
miscellaneous items making it a total of $20 per day, or $600 per
month, or $7,200 a year on essentials..
We would spend approximately $1,000 per year on garments, shoes,
haircut, movies, and some big ticket items.
Rental will cost at least $600 per month or $7,200 a year; even if
one does not rent a room but live with ones parents, contributions
to the familys expenses will be at least $600 per month
too..
This is about what a single person will be spending on
oneself a total of $15,400 per year.
At FOUR Percent GST levied on this total of $15,400 a year, we will
be paying $616.
By giving an average of $400 in ERS with the Right Hand, the
Left hand would have already taken an initial $50 PLUS a further
$616 in annual GST collection.
With the initial ERS money in the pocket, it is more likely to
encourage consumer spending; and like the Keynesian Economic
Theory of Consumption to stimulate the economy.
This release of the ERS is to let the money work like a catalyst to
lubricate the economic wheel, and get consumerism to kick start the
economy.
Another Pump Priming method with political benefits.
Spend, spend, and spend
but just be careful that you do not spend
more then you can afford.
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