I don't understand Economics!

At this time when everything seems to be going up in prices, it warms my heart to know that many food vendors are keeping their prices down. We read in the papers of the many hawker centres where customers can still have a good meal for less than $3.00. At the Tekka Temporary Market, I was pleasantly surprised when I found that a plate of fragrant nasi lemak with a generous serving of long beans with dried prawn chillies and brinjals costs only $1.50! A plate of delicious fried Hokkien mee costs only $3.00 while a plate of rice with two types of vegetables and one meat dish costs only $2.80. Mind you, these hawkers also have to pay price increases in petrol, rice, rental, etc.

Hence the question that comes to mind is that if the humble food vendors can maintain their prices, why can't bigger corporations with monopolies like the SBS, SMRT, Public Utilities Board, etc. do likewise? While people can choose not to have their meals at hawker centres, they cannot choose to walk for miles in the hot, blazing sun or to work in abject darkness. With the increase in petrol, many are opting to give up their cars and taking public transport. Have you not noticed how packed the buses and trains are throughout the whole day? During peak hours, passengers are packed like sardines in a can! Hence, in terms of head count, the two transport companies definitely make money. Therefore, it is almost indecent for public transport companies to increase their fares without first enhancing their services!!!

If prices of properties come down because of the less than positive sentiments, then shouldn't the prices of other things come down proportionately? Yet, why is the government increasing ERP charges with the rationale that it will reduce traffic congestion if eternal road payments are made? If so many people are already ousted out of their comfortable seats in the cars or on motorcycles, how can this measure not be redundant.? For die-hard motorists, they cannot do without their own cars or motorbikes. Many of these are so dependent on their vehicles that they sometimes tend to be somewhat lazy....and you can bet that initially after feeling the pinch of increased ERP charges, they will get used to the pinch and go through the arches again! How then can traffic congestion be ever reduced?

After having failed so many times, why didn't the respective authorities do something different? Instead of perpetually increasing ERP charges (which seems like the easiest way out) something innovative or creative could have been introduced. Perhaps an idea to modify the lifestyle of residents? I have noticed that people in other countries are more prone to walking. Perhaps you could say that the people who live in colder countries tend to walk more because it is difficult to walk with this high humidity. Then how about Malaysians, Thais, and Indonesians, just to name a few.? Don't they have almost the same climatic condition as ours? Instead of running on tread mills in the gym that lead you to nowhere, why don't people try destination walking? It is more meaningful, practical and economical. My tenant from Australia used to take taxis everywhere he went, because he could not stand the idea of taking a five minute walk from the MRT station to his office.

While it is good to save for a rainy day, our authorities have forgotten that we are not completely in control of our destiny! Man proposes; god disposes.! Have you not heard of the proverbial analogy of the man who saved and saved and became a millionaire.? Before he could even start to enjoy the fruits of his labour, he died suddenly. It is difficult for us to fathom the pride of the authorities in wanting to save billions, when many of our older folks are left struggling as cleaners, karang guni collectors, and generally surviving on $290/- a month. Time is not on their side, and many will not be able to have chance to enjoy life a little. Many an average income career man has a fairly huge amount in his CPF but he could be cash poor, and could not afford a roof over his head especially when properties are sold with cash over valuation.

Some credit should be given to the CPF scheme which has compelled savings, but I wish that more flexibility could be given during difficult times. Our immediate neighbour, Malaysia, may not be the most exemplary of nations, yet we could emulate some of their examples, for as Emerson had said, "Every man I meet is my superior in some way; in that I learn of him". Their ministers had taken some salary cut during tough times. Our civil servants have lucrative pay. A little cut will not subject them to suffering as compared to the poor who are already struggling with increased costs all round. It is not only the elderly and poor who may not live to enjoy the nation's wealth. It is somewhat disturbing to see some of our healthy youngsters collapse and die suddenly. A friend of mine used to be extremely frugal. Now he has resigned himself to the realisation that life is short; he will continue to save a little, but would not hesitate to pamper himself with some of life's luxuries. After all, from dust he is created, and to dust he returns.

Frankly, sometimes I wonder what people will do with one to two million dollars of income per year.? Will anyone emulate the examples of billionaire Warren Buffet who seems to enjoy making tons of money and giving tons away, while maintaining a simple life style. Instead of building himself a castle, this unique billionaire is contented with living in a house which he has been living in for the past few decades. Happiness and contentment to him means munching popcorns before the television in the evenings.

By the way, if the above does not make much sense to you, do not worry. It does not make much sense to me either. For as I have always said, I never understand politics, and being weak in mathematics, I find economics almost incomprehensible too. Thank God that I was spared from doing A levels where economics was then a compulsory subject. I entered university as a mature student which was better for me, for by age 23, I had already gone through the school of some hard knocks.

Hence, somehow.....I know I will survive ...and remain sane and happy. Sha ren yiu sha fu. (Direct translation of Mandarin phrase - stupid people have stupid luck). (A more dignified translation of the same phrase - the meek always get the most blessings)!

Gan Chau