Allo,
I remember economics textbooks saying that government sometimes
control fiscal spending.
For instance, during economic downturns government will spend money
on projects, trying to prop up the economy.
Often their favourite is infrastructure.
As you know, recently there are MRT lines being built.
And as you know, construction workers are generally international
workers, who do not spend much and remit their salary to their home
countries.
So, I am just wondering,
With this type of composition of workers, even though they are
cheap, but it is akin to an export of money, and a loss of
multiplier effect/ fiscal prop-up effect.
Why not the government employs Singaporeans/ PRs, who will be more
expensive, but will spend the money here and use the money
here?
After all, it achieves multiplier effect/ fiscal prop-up
effect.
Im thinking of construction workers and not IT workers or some
other sectors, because infrastructure is the domain of government
spending and very nice for them to fiscal tune.
What do you think?
