QuoteThe roots of Singapore's current problems, Yeoh believes, were planted in the 1990s, when its politics lurched rightward. In line with the prevailing neoliberal thinking, the government moved toward a more market-based approach to the pricing and ownership of HDB flats. Many citizens bought houses, taking advantage of a government scheme that allows citizens to use the savings in their Central Provident Fund -- a compulsory pension scheme -- to do so. Property prices were booming, so in theory this meant that they would have a valuable asset in retirement, which they could sell or borrow against.

However, HDB houses are sold as leaseholds, and the leases are ticking down. The value of many older homes has peaked, and their owners face a retirement with a depreciating asset and a diminished pension pot. That means the signature social policy has gone from one of the most successful public housing initiatives of the 20th century, to a liability for some elderly citizens, Yeoh said. "It's a time bomb."

Singapore has no statutory minimum wages, and labor unions have little power, so there was nothing to cushion the blow. A generation whose incomes had loosely tracked the country's growth suddenly found it accelerating away from them.

"You're earning your adult life in a middle-income country, and you end up having to retire ... in one of the richest developed countries in the world," Yeoh says. "It's like working in the Philippines and retiring in London."

Inevitably, this led to social tensions, which have simmered close to the surface for years.

Late last year, they boiled over.

https://asia.nikkei.com/Spotlight/Cover-Story/Is-Singapore-s-perfect-economy-coming-apart?utm_source=pocket-newtab

Very interesting read.

Singapore is a weird mix capitalism, market based solutions, and socialism.

Can you say "FINANCE"!!!

Quote from: joesixpack on January 27, 2020, 11:05:19 AM
Very interesting read.

Singapore is a weird mix capitalism, market based solutions, and socialism.

From the quote you posted:

"That means the signature social policy has gone from one of the most successful public housing initiatives of the 20th century, to a liability for some elderly citizens, Yeoh said. "It's a time bomb."

Do you realize this is proof central planning is a disaster?