Forum opinion article in Straits Times

[Lisafuller]

I honestly don't know. I can see the rationale for it in some scenarios but I can see why it's not an ideal solution too. I'd defer to the economists. As a layperson, I immediately think: cost of living will soar even higher.

Could definitely go both ways. From the perspective of minimum wage workers, they would surely welcome it. If I'm not mistaken, fast food chains like McDonald's pay something like seven dollars an hour here, which is pretty crazy and downright unlivable. On the other hand, instituting a minimum wage higher than what is current will certainly see a rise in costs.

It is true. My daughter has been pounding the pavement looking for work here before she starts university in Sep. She managed to land an $11/hr job at a department store, but she noticed Starbucks only pays $9/hr, and others are worse. Businesses like this seem to rely on young people who live with their parents… so in a way, their businesses are subsidized by people like me who provide kids free lodging — without that, it would seem impossible to live here.

I imagine the biggest cost for businesses here is the monthly lease they are paying, I imagine wages by comparison would be far less of a cost for them… but this is just my guess.

If she ends up going to California, working there for minimum wage will be double, around S$22/hr.

Did you see that CA is set to institute a $20USD minimum wage? That would bring it to S$26.88, which is pretty staggering!

[Lisafuller]

The reason there is no minimum wage is because the economy is addicted to low cost imported labour. This drives down salaries and keeps labour productivity low. However, it makes GDP looks good.

Here's what a insightful, caring government would do: stop undercutting it's citizens with cheap foreign workers and giving the best jobs to non-singaporeans. Create an entrepreneureal domestic workforce with western style liberal education and incentives for small businesses. Nurture and protect the local economy and stop the reliance on foreign capital and expertise.

The result will be higher wages, better living standards, more output per worker, and a self sustainaning local economy. Then a minimum wage can be set. Better lives for Singaporeans at the cost of not so stellar GDP figures.

Right, but how would they go about doing this? The backlash would be incredible.

[Lisafuller]

While people are young and economically active, setting a high minimum wage may look attractive even if cost of living rises, but what about the old people (we are legion) on fixed income or modest increase at most. Habis.

Also, lets not forget taxes. As wages get higher, you keep less of them.

Right! Just look at the Nordic countries. Life does seem blissful there, though.

[Lisafuller]

Housing and wages here are connected. Not necessarily linked 1:1, but they are related. If there were no subsidies, wages would need to be higher. If the wage level magically doubled (for example) overnight, housing prices would also take off like a rocketship.

The above is part of the challenge with nominal GDP comparisons. A high figure is generally favoured for geopolitical power and gov't revenues. However, often the bulk of a population doesn't really care or benefit if their income is X or 2X assuming the corresponding costs are X or 2X as well. Of course, higher figures are often associated with other good things, but there are usually relative winners and losers as well (ideological preferences aside).

Generally speaking, if there is a large subsidy and you take it away, segments of the population will be impacted in different ways (and to varying degrees). Often, some part of the population will get blown-up (and need help), and all of the competing interests make change difficult (probably true of any gov't program anywhere).

There are plenty of academic answers to an economic question like a minimum wage. Some are probably 100% right, others 99% right, and many mostly right. What they don't always consider is the social or political implications of doing this or that. For example, maximizing aggregate utility sounds great until some people are starving or voting you out of office.

Couldn't agree more. What is good in theory is far less feasible practically speaking. Changes of this scale would necessarily have massive political implications, which I'm sure the incumbents foresee.

[tiktok]

Backlash from who? Business owners mainly. Should a democracy be run in the interests of business? That's the question the sheeple must ask.

[Lisafuller]

Backlash from who? Business owners mainly. Should a democracy be run in the interests of business? That's the question the sheeple must ask.

I think the effects would be felt more widely, not just among business owners.

[Strong Eagle]

Amazing it is, that people who make far more than the minimum wage can come up with all sorts of reasons why there shouldn't be a minimum wage, or if there is, that it really and truly should be a paltry minimum.

[Lisafuller]

Amazing it is, that people who make far more than the minimum wage can come up with all sorts of reasons why there shouldn't be a minimum wage, or if there is, that it really and truly should be a paltry minimum.

Don't get me wrong here. I'm all for a minimum wage. People should be able to live off of what they make.

[malcontent]

I was paid minimum wage in the US for 3 years working part-time at a department store after school and on weekends. It was certainly not a living wage, but I was grateful for what I got.

My brother who works as a security guard in the US has been getting minimum wage for the past 15 years. Not easy, but minimum wage helped - double what a security guard here would make.

[Wd40]

The reason there is no minimum wage is because the economy is addicted to low cost imported labour. This drives down salaries and keeps labour productivity low. However, it makes GDP looks good.

Here's what a insightful, caring government would do: stop undercutting it's citizens with cheap foreign workers and giving the best jobs to non-singaporeans. Create an entrepreneureal domestic workforce with western style liberal education and incentives for small businesses. Nurture and protect the local economy and stop the reliance on foreign capital and expertise.

The result will be higher wages, better living standards, more output per worker, and a self sustainaning local economy. Then a minimum wage can be set. Better lives for Singaporeans at the cost of not so stellar GDP figures.

Most areas where foreign labour is imported, Singaporeans themselves wouldnt want to do like construction, cleaning neighbourhoods etc Hell, you can hire a full time maid in Singapore for $1000

In Australia, the cost of all of these are very high and there is dignity of labour, foreigners or locals can be seen doing the same job and paid the same.

Imagine a foreigner can go to Europe or Australia and straightaway drive taxis, uber etc. In Singapore, they have reserved this for Singaporeans only not even PRs. Foreigners cannot do any delivery kind of partime jobs, Spouses of foreign workers are not allowed to work and be productive and undercut Singaporean workers.

So how much more insighful and caring gahmen can you get?

[Strong Eagle]

The reason there is no minimum wage is because the economy is addicted to low cost imported labour. This drives down salaries and keeps labour productivity low. However, it makes GDP looks good.

Here's what a insightful, caring government would do: stop undercutting it's citizens with cheap foreign workers and giving the best jobs to non-singaporeans. Create an entrepreneureal domestic workforce with western style liberal education and incentives for small businesses. Nurture and protect the local economy and stop the reliance on foreign capital and expertise.

The result will be higher wages, better living standards, more output per worker, and a self sustainaning local economy. Then a minimum wage can be set. Better lives for Singaporeans at the cost of not so stellar GDP figures.

But there is indeed a de facto minimum wage in place for skilled, tech, and professional workers. It's the minimum salary requirements found in S-Pass and EP regulations.

[Lisafuller]

I was paid minimum wage in the US for 3 years working part-time at a department store after school and on weekends. It was certainly not a living wage, but I was grateful for what I got.

My brother who works as a security guard in the US has been getting minimum wage for the past 15 years. Not easy, but minimum wage helped - double what a security guard here would make.

And I'm sure he would be living very differently if he was in SG. Cost of living and wages don't match.

[Lisafuller]

The reason there is no minimum wage is because the economy is addicted to low cost imported labour. This drives down salaries and keeps labour productivity low. However, it makes GDP looks good.

Here's what a insightful, caring government would do: stop undercutting it's citizens with cheap foreign workers and giving the best jobs to non-singaporeans. Create an entrepreneureal domestic workforce with western style liberal education and incentives for small businesses. Nurture and protect the local economy and stop the reliance on foreign capital and expertise.

The result will be higher wages, better living standards, more output per worker, and a self sustainaning local economy. Then a minimum wage can be set. Better lives for Singaporeans at the cost of not so stellar GDP figures.

Most areas where foreign labour is imported, Singaporeans themselves wouldnt want to do like construction, cleaning neighbourhoods etc Hell, you can hire a full time maid in Singapore for $1000

In Australia, the cost of all of these are very high and there is dignity of labour, foreigners or locals can be seen doing the same job and paid the same.

Imagine a foreigner can go to Europe or Australia and straightaway drive taxis, uber etc. In Singapore, they have reserved this for Singaporeans only not even PRs. Foreigners cannot do any delivery kind of partime jobs, Spouses of foreign workers are not allowed to work and be productive and undercut Singaporean workers.

So how much more insighful and caring gahmen can you get?

There's also a very different working culture in AUS. People put themselves before their jobs, which is the way it should be. People in SG see themselves as their work, which isn't right.

[Lisafuller]

The reason there is no minimum wage is because the economy is addicted to low cost imported labour. This drives down salaries and keeps labour productivity low. However, it makes GDP looks good.

Here's what a insightful, caring government would do: stop undercutting it's citizens with cheap foreign workers and giving the best jobs to non-singaporeans. Create an entrepreneureal domestic workforce with western style liberal education and incentives for small businesses. Nurture and protect the local economy and stop the reliance on foreign capital and expertise.

The result will be higher wages, better living standards, more output per worker, and a self sustainaning local economy. Then a minimum wage can be set. Better lives for Singaporeans at the cost of not so stellar GDP figures.

But there is indeed a de facto minimum wage in place for skilled, tech, and professional workers. It's the minimum salary requirements found in S-Pass and EP regulations.

I think where it truly matters is with low income earners. Everyone should be able to support themselves.

[NYY1]

...
There are plenty of academic answers to an economic question like a minimum wage. Some are probably 100% right, others 99% right, and many mostly right. What they don't always consider is the social or political implications of doing this or that. For example, maximizing aggregate utility sounds great until some people are starving or voting you out of office.

Prices up, demand down. I think I read something about this phenomenon before, but I can't remember exactly where...

https://www.wsj.com/business/hospitalit ... _lead_pos6