Saturday, 6 October 2012

Singapore's Economy has MAXED OUT

This article is found in TREmeritus but originally published in SeekingAlpha an investment website.

The full article is found here:

It explains how Singapore has maxed out its resources.

1. Singapore workers work extremely long hours highest in developed countries and at least 30% more hours than US and Japan.

2. It shows the demographics is right now at the peak workforce size level. and will flatten and decline.

3. It shows population density is already abnormally high levels higher than the most density populated US city NYC.

4. Based on this the author says Singapore economy is MAX-ED out.

However, there are many flaws in the article:

1. The PAP govt can import people despite our demographics to force the economy to grow.

2. The PAP govt is unconcerned with the overcrowding effects of high density. It can just make the people shoulder increasing cost of living.

3. The article did not mention the Singapore income inequality which is the highest in the developed world. This is usually a hindrance to growth in democratci countries due to protests and unhappiness among populations. However, the PAP holds enormous propaganda power and authoritarian power to suppress such situations.

My conclusion is this is a good article but not a complete article on Singapore's economy.

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