{"id":32797,"date":"2023-12-03T10:00:53","date_gmt":"2023-12-03T02:00:53","guid":{"rendered":"https:\/\/fass.nus.edu.sg\/srn\/?p=32797"},"modified":"2023-11-30T15:47:36","modified_gmt":"2023-11-30T07:47:36","slug":"heart-of-the-matter-do-high-cost-of-living-concerns-in-singapore-affect-everyone-the-same-way","status":"publish","type":"post","link":"https:\/\/fass.nus.edu.sg\/srn\/2023\/12\/03\/heart-of-the-matter-do-high-cost-of-living-concerns-in-singapore-affect-everyone-the-same-way\/","title":{"rendered":"Heart of the Matter \u2013 Do high cost of living concerns in Singapore affect everyone the same way?"},"content":{"rendered":"
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In \u2018Heart of the Matter \u2013 Do high cost of living concerns in Singapore affect everyone the same way?\u2019 (Channel NewsAsia<\/em>, November 2023), Dr Ong Ee Cheng (Senior Lecturer, NUS Economics) explores the intricate factors influencing the prices of necessities, shedding light on the often-overlooked role of geopolitical issues.<\/p>\n

Dr Ong acknowledges that events such as the wars in Ukraine and Gaza, coupled with COVID-19 disruptions and suppressed supply chains, have contributed to a complex economic landscape in which prices have been driven up.<\/p>\n

However, she also highlights the significant influence of firms in determining prices. Dr Ong posits that firms that wield market power can exploit pent-up demand to justify price hikes, creating a paradox where household expenditures rise despite escalating costs. She then explores the paradox of capitalism. Here, she notes that capitalism spurs competition, but that successful firms tend to accrue market power and act in ways that limit consumer choice in the long term. Dr Ong argues for government intervention to regulate competition and prevent monopolistic practices, particularly in sectors dominated by big brands.<\/p>\n

A key concern is the widening gap between wages and inflation. Dr Ong questions whether companies should pay their workers more, emphasizing the need to rectify the power imbalance between labor and capital. She advocates for a fairer profit distribution system, challenging the sustainability of excessive bonuses while workers’ wages lag behind inflation.<\/p>\n

Throughout, Dr Ong emphasizes the role of government intervention to ensure the affordability of basic goods and services. She underscores the need for increased social support, given slow payout increases falling below the inflation rate. The episode concludes with uncertainty, questioning whether there is a light at the end of the tunnel and urging proactive government involvement to address economic imbalances.<\/p>\n

Listen to the episode here.<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Photo: iStock\/FJZEA<\/figcaption><\/figure>\n
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