Saw this SM Goh quote about the Growth Dividends in TODAY:
Pointing out that the Growth Dividends would alleviate families' financial outlay, Mr Goh added: "Don't go out to splurge… (this will) put pressure on inflation. Spend what you have to spend."
But back in 2008, SM Goh had a different message:
Mr Goh added that although many are now concerned about costs, Singaporeans should not save excessively."If all of us go into a power save mode, then the economy will really go into a recession! This is what economists called the Paradox of Thrift. If you have sufficient savings and can afford to spend, you should continue to spend on life's little pleasures.
"Take your family to the movies, shop, dine out at restaurants and hawker centres, go for your regular foot massage, indulge yourself at a spa, take a taxi, donate to charity and so on.
"This way, we keep the economy going. In fact, I would say when times are a little slow, you could get the best bargain," the senior minister said.
I think SM Goh needn't worry. Singaporeans are probably going to hang on to their Growth Dividends. We know at some point that money will have to go back to gahmen in some form or another.
On the looming inflation this year, Sm Goh also said that without cars and homes, "the core inflation rate is much lower - at just two to three percent".
Heck, if Singaporeans don't eat or drink, I bet we can lower it to even zero percent inflation! Come on, Singapore! What do you say?
