WARNING You are complaining about income disparity? Income disparity in this country will get wider and this is why:- 1. Our country will have a high-income economy. A high-income economy requires smart, well-educated people who can work independently, innovative and think out of the box. Because our university system failed to produce enough of such talents, the competition for good talents will heightened. With competition, their salaries will be higher than their actual economic value. 2. Children of the rich benefit from private education. The chances are they will be better educated. They also benefit from a more sophisicated environment when growing up and they can leverage on their familys networks. Rich kids will get richer not only because they benefitted from their upbringing but also from the parents inheritances. 3. The less developed minds are trapped. They cannot get high paying jobs yet they cannot go down the employment market because they have higher living fixed costs compared to the cheap imported labour. As such, in this middle category of jobs, it is the employers market - more supply than demand. 4. As subsidies for basic living goods and services get higher, the middle-incomers will get squeezed. The percentage of their income will have to be spent on basic living goods & services, leaving less and less for savings and investments. 5. Property rents and prices will increase. This is because the higher income earners will continue to buy properties in order their excess savings. In any country in transit up to its next level of economic development, property prices go up in tandem. 6. The rich have excess capital. This excess capital provides them more opportunities to make more money. 7. The range of salaries earned by world class talents that currently work in Singapore, Hongkong, London & New York will appear in Malaysia. They will widen the disparity gap further by pushing up the scale at the top-end further.
Posted on: Thu, 06 Nov 2014 16:08:22 +0000
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