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- Jan 23, 2022
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The insignificant nobody me understands that there ARE many factors that causes inflation, but will spare SBF readers here the Economic jargon & calculations, by using simple Human behavior as an example, here in Singapore. None needs to read my post.
1. During Singapore's formative years in the 60s, residents had to resort to often unhygienic hawkers stalls that were chock a bloc beside dirty drains with rats running over even foots.
2. Our govt, thanks to our courageous wise founding & forefathers, decided to use taxpayers fund to create hygienic hawker centers, whereby hawkers would be provided with better shelter, water, electricity, cheap rents, seats & tables, cleaning & maintenance regularly, etc, etc, in return for hygienic & foods sold at an affordable price to all citizens, whom the average salary back then was just between $300 - $500/mth.
Thus a plate of delicious chicken rice costs only $1.50, while restaurants such as Chatterbox in Mandarin Hotel or Silver Spoon cafe in Supreme House were selling the same at 5 to 10 times the price, comprehensible as those entrepreneurs had to pay high rents, decorations, etc, on their own.
3. However, sadly, as our Nation progressed, so too along with salaries, those hawker stalls funded by taxpayers whom were earning far far bigger sums, at the least $30K/mth that saw them buying landed properties, enjoy vacations & sent their kids to overseas colleges, than the average salaryman, saw fit to RAISE prices, along with traders/supply chains, that was unjustified by costs of commodities that while may rise, but will equally fall.
4. So, inflation is CAUSED by market forces in a free market whereby it is the choice of consumers - educated or not, to spend or not to, in order to have more in their savings...or less.
5. While the concept of price controls over certain goods is laudatory, it only speaks ill of free markets & may create illegal black markets & dark forces that would be detrimental to society such as smuggling, court actions etc.
In China when the 1st Emperor Shih Huang Ti ruled, in recorded history, his very first prominent & necessary measure to uplift lives was to create the Weights & Measures dept in his govt.
Inspectors were sent out to ensure that traders do not use cunning means to make a piece of pork weighs more that it should, by placing stones under the weighing scales on horrifically stuff such into meats, to profit more. Such measures & dept lasted for generations throughout the history of China & even Humankind whom traded with China & learnt.
Perhaps, instead of price controls, inspectors may be hired to ensure that any weight & cost measures be inspected & justified, & made known to consumers, so as to keep inflation down.,,as well as to STEM out bullying by cartels, whom will not hesitate to bully the entrepreneurs whom may have found honest ways to keep costs low for consumers....
1. During Singapore's formative years in the 60s, residents had to resort to often unhygienic hawkers stalls that were chock a bloc beside dirty drains with rats running over even foots.
2. Our govt, thanks to our courageous wise founding & forefathers, decided to use taxpayers fund to create hygienic hawker centers, whereby hawkers would be provided with better shelter, water, electricity, cheap rents, seats & tables, cleaning & maintenance regularly, etc, etc, in return for hygienic & foods sold at an affordable price to all citizens, whom the average salary back then was just between $300 - $500/mth.
Thus a plate of delicious chicken rice costs only $1.50, while restaurants such as Chatterbox in Mandarin Hotel or Silver Spoon cafe in Supreme House were selling the same at 5 to 10 times the price, comprehensible as those entrepreneurs had to pay high rents, decorations, etc, on their own.
3. However, sadly, as our Nation progressed, so too along with salaries, those hawker stalls funded by taxpayers whom were earning far far bigger sums, at the least $30K/mth that saw them buying landed properties, enjoy vacations & sent their kids to overseas colleges, than the average salaryman, saw fit to RAISE prices, along with traders/supply chains, that was unjustified by costs of commodities that while may rise, but will equally fall.
4. So, inflation is CAUSED by market forces in a free market whereby it is the choice of consumers - educated or not, to spend or not to, in order to have more in their savings...or less.
5. While the concept of price controls over certain goods is laudatory, it only speaks ill of free markets & may create illegal black markets & dark forces that would be detrimental to society such as smuggling, court actions etc.
In China when the 1st Emperor Shih Huang Ti ruled, in recorded history, his very first prominent & necessary measure to uplift lives was to create the Weights & Measures dept in his govt.
Inspectors were sent out to ensure that traders do not use cunning means to make a piece of pork weighs more that it should, by placing stones under the weighing scales on horrifically stuff such into meats, to profit more. Such measures & dept lasted for generations throughout the history of China & even Humankind whom traded with China & learnt.
Perhaps, instead of price controls, inspectors may be hired to ensure that any weight & cost measures be inspected & justified, & made known to consumers, so as to keep inflation down.,,as well as to STEM out bullying by cartels, whom will not hesitate to bully the entrepreneurs whom may have found honest ways to keep costs low for consumers....
