From: khor@bnr.ca (Kyle Hor)
Subject: Re: Developed? Must have unemployment benefits!
Reply-To: khor@bnr.ca
Organization: Bell-Northern Research Ltd.
Date: Fri, 8 Jan 1993 22:29:48 GMT

In article <1993Jan8.093431.13672@ntuix.ntu.ac.sg>, othman@ntrc25.ntrc.ntu.ac.sg (othman (EEE/Div 4)) writes:
|> :  
|> : |> ALL RICH PEOPLE SPEND A LOT OF MONEY                                      
|> : |> ALL POOR PEOPLE SPEND LITTLE MONEY                                        
|> : |> THEREFORE, IN ORDER TO BECOME RICH, ONE SHOULD SPEND AS MUCH MONEY AS
|> : |> POSSIBLE:                                                                
|> : Interesting.  I should start changing my lifestyle to become rich :) :).
|> 
|> Well you may succeed. What is richness anyway?
|> You may have a lot of money(in shares or assets) but if you cannot spend it
|> are you rich?
|> 
Git'a'life!  Can you detect humour when you see one?

|> : No it is not trivia.  You hit the nail right on the head.   People
|> : receiving unemployment benefits are reluctant to go back into the
|> : workforce unless the pay is more attractive than the unemployment
|> 
|> What is the point of going back to work if you are engaged in a non-productive
|> manner. Refer to german experience.
|> 
Are you saying that it is better to sit back and be fed than to work for one's
keep, even though it might not be much?

|> : If it comes from one own's CPF, it is 'finite' and can deplete real
|> : fast. An incentive to go back into the work force.
|> 
|> What makes you thing the government coffer is unlimited? If there is too 
|> many people become unemployed, the amount received to each one will be reduced
|> somehow either through currency devaluation(inflation) or giving less to each
|> person.
|> 
Did I say it is unlimited?  Govt with generous unemployment benefits are
feeling the pinch (especially with the current/recent recession) but they
are finding it difficult to reduce -- one sure way to lose in the next
election.  As a result they continue to dole out $$$ at the expense of
the tax-payers and other govt funded programs.  

|> : Unemployment 'feedings' has lead countries to have a artificially
|> : higher labour cost than it should and make it less competitive.  (I
|> 
|> Are you saying that the west german salary is artifically high compared to
|> the east german salary?
|> 
En. Learned Othman.  You should be aware that high labour cost is a result
of various factors, of which generous unemployment benefits is one of them.
Other contributors are, labour unions, inflation, etc.

|> : know it is not the only reason but it is one of them).  I'm sure that
|> : the forces in Singapore are aware of this and therefore had not
|> : blindly followed the "developed nations" example.
|> Are they successful in joing the super league with the current low salary?
|> 
Before the last coupla years when the Yen shot up, Japan's salary were
significantly lower than US, and Western Europe.  Were they not up
there?

|> Maybe I should start a thread called "how to achieve US $20k per capita"
|> which I believe is the level to be achieved to join the super league.
|> 
As long as you do not contort it into a racism issue :).

............................................................................
. Kyle Hor                    .    /       / _   .  Email  khor@bnr.ca     .
. Bell-Northern Research Ltd. .   /__\  / / /_\  .  Phone  (613) 763-2488  .
. Ottawa, Ontario, Canada     .  / \  \/ /  \__  .  ESN          393-2488  .
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