Tag: income gap

Household Incomes In Singapore Rise But Income Gap Remains Largely Unchanged

The earnings of households across income levels grew last year, even after accounting for inflation, while the income gap between the rich and the poor remained largely unchanged from 2013.

Numbers released yesterday by the Department of Statistics (SingStat) on key household income trends last year showed that the median monthly household income from work grew to S$8,290, up 4.1 per cent after accounting for inflation. This was the highest real increase since 2011, which saw a 5.6 per cent growth from 2010.

Factoring in the household sizes, the median monthly household income from work per household member also rose by 4.7 per cent last year, after accounting for inflation.

Meanwhile, the Gini coefficient — a measure of income inequality — was 0.464 last year, compared with 0.463 in 2013. After adjusting for Government transfers, it was 0.412 last year, slightly higher than 0.409 in 2013.

SingStat said this was because the amount of Government transfers and taxes was lower last year compared with 2013, when there were more one-off payments such as one-off Medisave top-ups and special payments on top of the permanent GST voucher payments. “In the past two years, the Gini, after accounting for Government transfers and taxes, had been at its lowest level in a decade,” added SingStat.

Experts whom TODAY spoke to attributed the growth in real household income to a tighter labour market, where there could have been wage increments, given the need to retain labour.

While the experts felt the Government would be able to continue with the transfers and taxes for the lower income, given that it had been careful with such payments so far, they said it would need to look at increasing productivity levels and upgrading employers’ skills in the longer term.

OCBC economist Selena Ling felt it was encouraging to see the Gini coefficient stabilising at a relatively lower level, but said the Government would need to continue to balance the short-term wants of people with the longer-term issue of fiscal sustainability. Nonetheless, she noted that the Government had been “fairly prudent”. “Even last year’s budget, the fact that it can fund, completely upfront, S$8 billion (for the) Pioneer Generation Package tells you something about the health of the fiscal position for Singapore,” she said.

CIMB economist Song Seng Wun felt that raising household income through Government transfers was “not a sustainable model”, and said the focus would continue to be on the drive to increase productivity. “What we want to do is to (look) at income as a whole, how it can be lifted through a more broad-based rise in wages,” he added.

On the other hand, pointing to the cumulative growth in average income per household member over the past five years, UOB economist Alvin Liew noted that the lowest-income group at the 1st to 10th percentile saw a lower income growth of 17.2 per cent, compared with those at the 11th to 40th percentile.

Noting that there could be “something chronic” within that group preventing them from being able to raise their incomes at a faster pace, Mr Liew said this group needed more help.

He added that those in the middle-income groups also saw lower income growth of less than 5 per cent last year. The 41st to 50th percentile recorded a 4.8 per cent growth in income, while the 51st to 80th percentile saw an income growth of 4.6 per cent.

While this could be too broad a group to be classified as a sandwiched class, Mr Liew said these were the people who do not qualify for Government transfers and taxes, though their income levels are not growing as fast.

“The question is, how do you help these people who are probably not getting the transfers, but their incomes are not growing as fast … while you have other things that are moving against them, like elevated property prices and the growing cost of living in Singapore,” he added.

Source: www.todayonline.com

February 17, 2015
Wealthiest 1% Globally Will Possess More Than Half Of Total Global Wealth In 2016

The very rich are getting very richer.

The wealthiest 1% of the world’s population will own more than half of total global wealth next year, according to projections released Monday by Oxfam International, the antipoverty advocacy group.

And the richest 80 people in the world alone now possess more combined riches than do the poorest half of the world’s population, Oxfam reported, citing Credit Suisse CSGN.VX +1.23% and Forbes data.

“Global wealth is becoming increasing(ly) concentrated among a small wealthy elite,” the Oxfam report said.

In 2010, it would have taken the combined riches of the 388 top billionaires to equal the combined assets of the bottom 50% of the planet. But the billionaires’ assets have appreciated so quickly since then, and the total value of the poor’s resources has dropped so precipitously, that last year it took just the top 80 billionaires to equal the wealth of the bottom 3.5 billion people on the planet, Oxfam said.

The wealthiest 80 people have a combined net worth of $1.9 trillion, up from $1.3 trillion in 2010, with the bulk of their fortunes coming from the financial, pharmaceutical and health care industries. More than a billion people live on less than $1.25 a day, Oxfam said.

The richest 20% of the population together hold 94.5% of the world’s wealth, Oxfam said. The poorest 80% of the world’s population share just 5.5%.

“It is time our leaders took on the powerful vested interests that stand in the way of a fairer and more prosperous world,” Winnie Byanyima, Oxfam’s executive director, said in a written statement accompanying the report.

Source:http://blogs.wsj.com

January 21, 2015
Grace Fu: Income Gap To Close With Tightening Of Foreign Labour Entry

The income disparity between blue-collar jobs and higher-paying ones will decrease in future with the tightening of Singapore’s foreign-worker policies, said Minister in the Prime Minister’s Office Grace Fu yesterday in a community dialogue.

Citing the example of Australia, where plumbers are the highest-paid workers over weekends, Ms Fu said Singapore “is going to be like that because we are not going to have so many work-pass holders to come in (to) do construction or plumbing jobs”.

She added: “So if you have skills like this, you’re going to demand better pay and that’s really the future of Singapore, where the disparity is not as great as now. What would be blue-collar jobs will get better pay.”

Ms Fu was speaking to residents and students while on a ministerial community visit to Tampines East.

During a 70-minute dialogue, questions about foreign labour, the integration of immigrants here and opportunities for Singaporeans dominated proceedings.

The starting point of Singapore’s policies on foreign labour is the interest and benefit of Singaporeans, said Ms Fu, who is Second Minister for the Environment and Water Resources as well as Foreign Affairs.

Singapore has to be economically attractive, remaining open, so companies will continue to invest here and provide jobs and options for locals, she noted.

While the Government is creating more education opportunities for Singaporeans — through the setting up of the Singapore University of Technology and Design as well as the Singapore Institute of Technology, for example — the bigger question is whether a university degree trains people appropriately for jobs here.

Through initiatives such as SkillsFuture, the Government is encouraging students to pick up skills that are relevant to the jobs out there and ensuring opportunities to upgrade as they go.

“(If) you deepen your skills, you can become an expert and there are very well-paying jobs waiting for us,” she said.

Two student participants noted that social tension and unhappiness could arise between Singaporeans and foreigners here, as shown by the outcry that followed a Filipino nurse’s recent online remarks calling Singaporeans “loosers” (losers) in their country.

Ms Fu urged Singaporeans to take a firm stand against insensitive comments made by a minority, but remain calm, cool-headed and united.

There are black sheep among both Singaporeans and foreigners who make insensitive comments about others, she added.

However, other fault lines, such as those along race and religion, may also surface. “Our position is that we must, first of all, be sensitive to one another. There’s a certain limit when we talk about freedom of speech. You have to take into consideration (the relationship among different races and religions) in Singapore, so be careful when you make the remarks,” she said.

Asked whether there were people who had left after taking up Singapore citizenship, Ms Fu said the number is “very low” and has been stable for a long time.

New citizens may come to Singapore for economic opportunities — as did many immigrants in the early days — but many become “valuable, really good Singapore citizens who put their heart and soul in this place”, she said, urging Singaporeans to give them a chance.

The Government has also raised the requirements for one to be considered for citizenship, added Ms Fu.

Asked after the dialogue about issues being raised on foreigners, Ms Fu told reporters those are perennial issues that merit the reiteration of mutual respect when incidents arise and said she was glad the youth are taking interest in such issues.

Source: www.todayonline.com

January 19, 2015
British FT At TTSH Talks Down To Low-Income Patients

Dear Mrs Tan,

Please refer to the attached letter from SSO. I visited the Podiatry Department of TTSH last Wednesday for an appointment fixed by their Orthopedic Department with the letter but was shocked to receive an extremely hostile attitude by the HOD Dorcas Sholanke (https://www.facebook.com/dorcas.sholanke).

The Podiatry Department called up their Medical Social Services to inquire on the validity of the SSO letter to which the MSW retorted that it is not updated in their system and they do not “recognize” SSO statement of their card’s ability to be utilized at all restructured hospitals. Hence, the MSW accordingly rejected the notion of their Podiatry colleague’s request for a “pending memo” so they can proceed with my treatment.

When that occurred, the Podiatry HOD came to speak with me in a very intimidating and elitist manner that she can only fix an appointment for me to see podiatry again in a few months time, provided I clear the issue with SSO or she will proceed to cancel all my treatment plans and close the file. She also demanded that I pay for the day’s consultation or she will terminate even that consultation and I will have to pay afresh again when I return.

Appalled at what was happening in a “public hospital”, I took out my camera and wanted to record all her threats so I can let you witness firsthand, what is truly happening on the grounds of your hospitals. She then quickly proceeded to violently snatched my phone but I was lucky enough to dodge it.

I later spoke to the duty manager of the day who assured me that her behavior will be looked into but I have not heard from TTSH to this very day. I do not know and wonder, how many more Singaporeans out there like myself were treated in such a manner in our own country’s healthcare institutions while I witnessed many foreign patients at the same institution being treated first class.

I also saw on that same day at TTSH, how a foreigner who parked illegally at the Podiatry department was able to possess negotiating powers for them to amicably and unconditionally release his clamped wheels.

Please see related links:
TTSH Podiatry HOD

Yours faithfully,

DDC

Source: www.allsingaporestuff.com

January 16, 2015
Switzerland Considering Paying Citizens $2,600 A Month For Doing Nothing

Update: According to the folks behind the Basic Income campaign, Switzerland’s government will start discussing the proposal in spring 2015, with the public vote likely to take place by fall 2016.

Switzerland could soon be the world’s first national case study in basic income. Instead of providing a traditional social net—unemployment payments, food stamps, or housing credits—the government would pay every citizen a fixed stipend.

The idea of a living wage has been brewing in the country for over a year and last month, supporters of the movement dumped a truckload of eight million coins outside the Parliament building in Bern. The publicity stunt, which included a five-cent coin for every citizen, came attached with 125,000 signatures. Only 100,000 are necessary for any constitutional amendment to be put to a national vote, since Switzerland is a direct democracy.

The proposed plan would guarantee a monthly income of CHF 2,500, or about $2,600 as of November 2014. That means that every family (consisting of two adults) can expect an unconditional yearly income of $62,400 without having to work, with no strings attached. While Switzerland’s cost of living is significantly higher than the US—a Big Mac there costs $6.72—it’s certainly not chump change. It’s reasonable income that could provide, at the minimum, a comfortable bare bones existence.

The benefits are obvious. Such policy would, in one fell swoop, wipe out poverty. By replacing existing government programs, it would reduce government bureaucracy. Lower skilled workers would also have more bargaining power against employers, eliminating the need for a minimum wage. Creative types would then have a platform to focus on the arts, without worrying about the bare necessities. And those fallen on hard times have a constant safety net to find their feet again.

Detractors of the divisive plan also have a point. The effects on potential productivity are nebulous at best. Will people still choose to work if they don’t have to? What if they spend their government checks on sneakers and drugs instead of food and education? Scrappy abusers of the system could take their spoils to spend in foreign countries where their money has more purchasing power, thus providing little to no benefit to Switzerland’s own economy. There’s also worries about the program’s cost and long term sustainability. It helps that Switzerland happens to be one of the richest countries in the world by per capita income.

The problem, as with many issues economic, is that there is no historical precedent for such a plan, especially at this scale, although there have been isolated incidents. In the 1970s, the Canadian town of Dauphin provided 1,000 families in need with a guaranteed income for a short period of time. Not only did the social experiment end poverty, high school completion went up and hospitalizations went down.

“If you have a social program like this, community values themselves start to change,” Evelyn Forget, a health economist at the University of Manitoba, told The New York Times.

Similar plans have been proposed in the past. In 1968, American economist Milton Friedman discussed the idea of a negative income tax, where those earning below a certain predetermined threshold would receive supplementary income instead of paying taxes. Friedman suggested his plan could eliminate the 72 percent of the welfare budget spent on administration. But nothing ever came to fruition.

It’s what makes the potential experiment in Switzerland so compelling. Developed countries around the world are struggling to address the issues of depressed wages for low-skilled workers under the dual weight of automation and globalization.

For German-born artist Enno Schmidt, one of the founders of the proposal, a living wage represents continued cultural progress along the lines of women’s suffrage or the civil rights movement by providing dignity and security to the poor, while unleashing creativity and entrepreneurial spirit.

“I tell people not to think about it for others, but think about it for themselves,” Schmidt told the Times. “What would you do if you had that income?

@sfnuop

Source: http://motherboard.vice.com/blog/what-would-you-do-with-2800-a-month-no-…

Source: www.therealsingapore.com

November 20, 2014