Inflation in Singapore Hits 6.7% for Feb 2008!!!
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Originally posted by maurizio13:
Ermmmm.....But how come other countries facing the same commodity prices are having lower inflation rate than Singapore?
What is your Economic explanation?
do you know that all along we're paying much lower for items like pork? Even the Phillippinos are willing to pay more for the pork than us!Another thing is tis, do you have price control mechanism like Malaysia? Anyway I'm laughing now, Malaysia is going to follow Singapore, free market for rice, flour and etc. I wun be surprised in future, price of petrol in JB and SG would be the same
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yay, with higher inflation, the percentage gst tax collected will also rise accordingly!
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Originally posted by sbst275:
do you know that all along we're paying much lower for items like pork? Even the Phillippinos are willing to pay more for the pork than us!Another thing is tis, do you have price control mechanism like Malaysia? Anyway I'm laughing now, Malaysia is going to follow Singapore, free market for rice, flour and etc. I wun be surprised in future, price of petrol in JB and SG would be the same
Germans pay quite a bit less for pork in the supermarket as compared to us although their gst is 19%.
And erm... willing to pay more and paying much lower... no link between the two leh...
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Originally posted by sbst275:
do you know that all along we're paying much lower for items like pork? Even the Phillippinos are willing to pay more for the pork than us!Another thing is tis, do you have price control mechanism like Malaysia? Anyway I'm laughing now, Malaysia is going to follow Singapore, free market for rice, flour and etc. I wun be surprised in future, price of petrol in JB and SG would be the same
You mean of all the countries I listed with lower inflation rate than Singapore, they all have price control mechanism?Simple question for you to answer.
Why are all the other countries like Germany, France, Australia, New Zealand, UK, Malaysia, Ireland, Japan and Taiwan facing same commodity prices
as Singapore having lower inflation rate than Singapore?
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Dun say never warn
China & India has alrdy banned export of their rice, and at the same time gone to Thailand to import rice... PRC alrdy is rich, they've the money to outbid us for supply of rice alrdy
Some wheat producing countries has alrdy banned exported of their wheat as well to ensure enough food for their own ppl...
you want cheaper food can... transform Singapore into an agricultural country produce our own rice and wheat and not be put under the mercy of commodity prices
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one of the burger king employee at the counter told me that he was paid $4/hr!
a friend of mine that works as a security protection industry, told me how they tried to advertise for an opening for a security guard for a pay of $930/mth for nearly 2 months and no one want the job at all!
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Originally posted by eagle:
Germans pay quite a bit less for pork in the supermarket as compared to us although their gst is 19%.
And erm... willing to pay more and paying much lower... no link between the two leh...
I believe the German farmers receive close to €10 billion worth of financial aid from the government each year.
http://farmsubsidy.org/snapshotx/germany/Total%20direct%20aid%20to%20farmers
Want to make a guess where these farm subsidies come from?
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Originally posted by sbst275:
Dun say never warn
China & India has alrdy banned export of their rice, and at the same time gone to Thailand to import rice... PRC alrdy is rich, they've the money to outbid us for supply of rice alrdy
Some wheat producing countries has alrdy banned exported of their wheat as well to ensure enough food for their own ppl...
you want cheaper food can... transform Singapore into an agricultural country produce our own rice and wheat and not be put under the mercy of commodity prices
Vietnam is also facing some problem with virus attack on their rice crops
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Originally posted by TCH05:
I believe the German farmers receive close to €10 billion worth of financial aid from the government each year.
http://farmsubsidy.org/snapshotx/germany/Total%20direct%20aid%20to%20farmers
Want to make a guess where these farm subsidies come from?
With taxes, the price is already lower than Sg's. So without taxes on consumers to give subsidies to farmers, the price will be even lower!
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Originally posted by eagle:
With taxes, the price is already lower than Sg's. So without taxes on consumers to give subsidies to farmers, the price will be even lower!
Without subsidies they will not be competitiveAnd the farmers will starve
And no one will want to be a farmer
And you see prices sky rocketing
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Originally posted by eagle:
With taxes, the price is already lower than Sg's. So without taxes on consumers to give subsidies to farmers, the price will be even lower!
What I am trying to highlight to you is that the farmers in Germany are getting about €10,000,000,000 worth of financial aid from the government each year and that is the reason why the pork prices in Germany can be cheaper than in Singapore, where 100% of our pork are imported from countries where they dont have such generous farm subsidies.
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Originally posted by elindra:
Without subsidies they will not be competitiveAnd the farmers will starve
And no one will want to be a farmer
And you see prices sky rocketing
Yes, less people will want to be farmers... According to economic theory, prices will rise, yes, but not to the full extent of the full amount of tax/subsidy...
At the very most, prices will rise to the level such that it covers the 'missing' subsidy. But then, lesser subsidies will mean lesser tax on the products too. Thus, overall, the prices would not sky rocket.
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Originally posted by eagle:
Yes, less people will want to be farmers... According to economic theory, prices will rise, yes, but not to the full extent of the full amount of tax/subsidy...
At the very most, prices will rise to the level such that it covers the 'missing' subsidy. But then, lesser subsidies will mean lesser tax on the products too. Thus, overall, the prices would not sky rocket.
Those are just theories and will not happen irlLess subsidies does not mean the government will reduce the tax on the products
Where demand way surpasses supply you will see prices spiking up like crazy. That is what is happening to all the cash crops right now.
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Originally posted by sbst275:
Dun say never warn
China & India has alrdy banned export of their rice, and at the same time gone to Thailand to import rice... PRC alrdy is rich, they've the money to outbid us for supply of rice alrdy
Some wheat producing countries has alrdy banned exported of their wheat as well to ensure enough food for their own ppl...
you want cheaper food can... transform Singapore into an agricultural country produce our own rice and wheat and not be put under the mercy of commodity prices
Does every other country in the world pay the same amount for agricultural products?
Look at the future prices from the Chicago Board of Trade.
If every other country in the world pays exactly the same price for her agricultural product.
How do you explain inflation in Singapore being higher than other countries?
Doesn't really matter whether we are producer of agricultural products, because the "law of one price" holds.
ie the price of a commodity in a free global market is the same, save for transportation cost.
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Originally posted by TCH05:
What I am trying to highlight to you is that the farmers in Germany are getting about €10,000,000,000 worth of financial aid from the government each year and that is the reason why the pork prices in Germany can be cheaper than in Singapore, where 100% of our pork are imported from countries where they dont have such generous farm subsidies.
May I point out to you that subsidies merely meant that the farmers can afford to sell at a reduced price.
But buying price by consumers will have to include taxes to cover the subsidies.
Consumers will buy at price Pc, while farmers will afford to sell at price Pp while receiving the subsidy difference of Pc - Pp
Of course, this is a simplified explanation, because the quantities produced will then be higher than market demand, of which the surplus is being exported.
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Originally posted by elindra:
Those are just theories and will not happen irlLess subsidies does not mean the government will reduce the tax on the products
Where demand way surpasses supply you will see prices spiking up like crazy. That is what is happening to all the cash crops right now.
Do you think the people will not complain and vote out the government if the subsidies are removed without a corresponding reduction in tax if the government cannot tell the people where the extra money is going to be spent on?
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Originally posted by maurizio13:
Does every other country in the world pay the same amount for agricultural products?
Look at the future prices from the Chicago Board of Trade.
If every other country in the world pays exactly the same price for her agricultural product.
How do you explain inflation in Singapore being higher than other countries?
Doesn't really matter whether we are producer of agricultural products, because the "law of one price" holds.
ie the price of a commodity in a free global market is the same, save for transportation cost.
The problem in SG that we see crazy increases in prices is because the price increases over the years have been absorbed by the suppliers. However, these companies can no longer absorb the price differences and when they do a price increase, of course we will see a larger spike in price.
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Originally posted by eagle:
Do you think the people will not complain and vote out the government if the subsidies are removed without a corresponding reduction in tax if the government cannot tell the people where the extra money is going to be spent on?
do you know the tax rate in Malaysia is 28% just to feed for the subsidy you are pushing the PAP for -
Originally posted by TCH05:
What I am trying to highlight to you is that the farmers in Germany are getting about €10,000,000,000 worth of financial aid from the government each year and that is the reason why the pork prices in Germany can be cheaper than in Singapore, where 100% of our pork are imported from countries where they dont have such generous farm subsidies.
You truly have no fundamental understanding of economics, suggest you get some basic knowledge in economics first.
Subsidies only serves to reduce the price of the commodity being subsidised.
Government provide subsidies to farmers to guarantee a rate of return and make them more competitive in the global market.
"European Union agricultural subsidies are destroying livelihoods in developing countries. By encouraging over-production and export dumping, these subsidies are driving down world prices of key commodities, such as sugar, dairy, and cereals. Reforming a system in which Europe's large landowners and agribusinesses get rich on subsidies, while smallholder farmers in developing countries suffer the consequences, is an essential step towards making trade fair."
http://www.globalpolicy.org/socecon/trade/subsidies/2002/10stopdumping.pdf
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Dun say I never say... hoh hoh hoh
Malaysia is also going to start GST from next yr..
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Originally posted by sbst275:
do you know the tax rate in Malaysia is 28% just to feed for the subsidy you are pushing the PAP forWhich post did I say that I'm pushing the PAP for subsidy?
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Originally posted by sbst275:
Dun say I never say... hoh hoh hoh
Malaysia is also going to start GST from next yr..
huh? Your info comes from where de
There's already sales and service tax... Different name only...
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Originally posted by elindra:
The problem in SG that we see crazy increases in prices is because the price increases over the years have been absorbed by the suppliers. However, these companies can no longer absorb the price differences and when they do a price increase, of course we will see a larger spike in price.
BUTWhy is it that only Singaporeans are feeling the "harsher" (not discounting that other countries do experience it, but in dilution, based on data from inflation)
effects of the price hike?
Exchange rate policies by MAS of managing the exchange rate within a trading band?
Singapore's inflation is not solely due to agricultural products, if you look at the first post, we have increases in all other sectors (housing, transport & communication,
food, healthcare), only clothing is spared from inflation.
If the reason for increases is due to just higher oil prices thereby affecting tranportation cost, shouldn't the price of clothing increase in tandem with food and
transportation?
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Originally posted by eagle:
huh? Your info comes from where de
There's already sales and service tax... Different name only...
yup, next time check your A&W receipt when you go makan there. sales service tax in malaysia already in effect many years ago.
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Originally posted by eagle:
May I point out to you that subsidies merely meant that the farmers can afford to sell at a reduced price.
But buying price by consumers will have to include taxes to cover the subsidies.
Consumers will buy at price Pc, while farmers will afford to sell at price Pp while receiving the subsidy difference of Pc - Pp
Of course, this is a simplified explanation, because the quantities produced will then be higher than market demand, of which the surplus is being exported.
1) What it means is that the price of PORK in Gemany are selling below the farmer REAL cost and the reason why the farmers can afford do it is because they are getting subsidies from the government who is using the income tax revenue to pay for the subsidies.2) May I know what are you trying to tell us with that supply and demand curve because in the real world, it can never be a straight lines and since farm subsidy is regulated by government hence it cannot see how you can represented it such simply S&D chart.