The nonsense some people write on the internet
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why is CPF interest rates pegged to the banks interest rate?
many banks have a rate that is far lower than 0.1%. so how is that fair? it is two different things altogether.
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Originally posted by SMB145B:
what if the employer underpays you?
right now SC/PRs only takes home 80% of their total pay (annual bonus+incentives+others on top of their basic pay). new PRs have a progressive change from 100% to 80% accordingly.
foreigners come to SG for better pay or better conditions. they came on work permits, S-pass, E-pass or other passes. the S-pass holder have a minimum wage.
If an employer underpays you, you can always look for another job that pays higher - provided you have the skills to justify the pay. At the end of the day, it is your skill level that determines your pay.
If you cannot find another job that pays higher, you better go for retraining.
What is the minimum wage for S pass holders? The minimum wage for S pass holders is to stop employers from hiring too many of them following complaints of too many foreigners.
The purpose of minimum wage is always, since the time it first started in Australia and NZ, to prevent employment. Let me give you a simple illustration to convince you, since you do not appear convinced.
Since minimum wage started in Australia/NZ, I will give you an Aussie illustration.
It is sometime in the 1890s. Mr White is an experienced sheep shearer. Mr Wong is just fresh of the boat from China and inexperienced in Aussie jobs like sheep shearing. Also the job needs strength and White is bigger and stronger than Wong. Mr Rich is a wealth owner of a sheep station (Aussie slang for ranch or farm). He has 400 sheep that needs shearing.
Mr White can shear 12 sheep in one hour. Mr Wong can only shear 4 sheep in one hour. Mr Rich is prepared to pay Mr White $3 per hour and Mr Wong $1 per hour. Mr Wong does not mind because he knows that Mr White can do the job three times faster than he can.
In 25 hours, White sheared 25 x 12 = 300 sheep. He was paid $25 x 3 = $75.
In 25 hours, Wong sheared 25 x 4 = 100 sheep. He was paid $25 x 1 = $25.
Therefore, Rich paid a total of $100.
Now watch what happens when they imposed a minimum wage of say $2 per hour.
In 25 hours, White still sheared 300 sheep and he was paid $75.
In 25 hours, Wong still sheared 100 sheep but now he would have been paid $50.
This would have cost Rich a total of $125.
But Rich did not become rich because he was stupid. So he decided to fire Wong and let White do all the sheep by himself.
Since White can shear 12 sheep in one hour, he finished the job in 400/12 = 33.33 hours. He was paid 33.33 x $3 = $100.
Result? Rich spent the same as before minimum wage. White gets more pay while Wong is jobless. Wong also lost the opportunity to gain experience and in time would have qualified him a higher salary.
This is a simple illustration of how minimum wage causes unemployment among the low skilled. It does not help the poor. It makes things worse for them.
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Originally posted by SMB145B:
why is CPF interest rates pegged to the banks interest rate?
many banks have a rate that is far lower than 0.1%. so how is that fair? it is two different things altogether.
What do you mean? CPF rates are not pegged to bank interest rates. CPF pays us 3.5% to 5%. A one year fixed deposit at the OCBC (last I checked) was 0.25%.
CPF is paying us more. I don't understand your question.
What I was trying to say in the article is that if CPF returned all our money, as a silly blogger keeps asking for, where would you invest your money? If you put the returned CPF money in the bank, you end up with lower interest rate than what CPF is paying you.
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Originally posted by hastings:
What do you mean? CPF rates are not pegged to bank interest rates. CPF pays us 3.5% to 5%. A one year fixed deposit at the OCBC (last I checked) was 0.25%.
CPF is paying us more. I don't understand your question.
What I was trying to say in the article is that if CPF returned all our money, as a silly blogger keeps asking for, where would you invest your money? If you put the returned CPF money in the bank, you end up with lower interest rate than what CPF is paying you.
Back then, banks pays an high interest rate. By 2001, rates dropped to this low. As for the CPF OA and SA, they follow.
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Originally posted by SMB145B:
Oh I get it. You are asking me why is it that CPF interest rate varies according to the bank rates.
Actually, all interest rates tend to fluctuate together. The interest rate for CPF ordinary account reached a peak of 6.5% in the period 1974 to 1985. That was when the US was suffering from terrible inflation and the Federal Reserve (the US central bank) raised interest rates.
The US is the world's largest economy and what they did will affect the rest of the world. So our interest rates went up as well. Our government could invest its cash in higher interest rate bonds and so pay CPF members higher interest rates.
But when interest rates go down, their investments will also obtain a lower interest rate. So CPF interest rate has to come down.
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Originally posted by hastings:
If an employer underpays you, you can always look for another job that pays higher - provided you have the skills to justify the pay. At the end of the day, it is your skill level that determines your pay.
If you cannot find another job that pays higher, you better go for retraining.
What is the minimum wage for S pass holders? The minimum wage for S pass holders is to stop employers from hiring too many of them following complaints of too many foreigners.
The purpose of minimum wage is always, since the time it first started in Australia and NZ, to prevent employment. Let me give you a simple illustration to convince you, since you do not appear convinced.
Since minimum wage started in Australia/NZ, I will give you an Aussie illustration.
It is sometime in the 1890s. Mr White is an experienced sheep shearer. Mr Wong is just fresh of the boat from China and inexperienced in Aussie jobs like sheep shearing. Also the job needs strength and White is bigger and stronger than Wong. Mr Rich is a wealth owner of a sheep station (Aussie slang for ranch or farm). He has 400 sheep that needs shearing.
Mr White can shear 12 sheep in one hour. Mr Wong can only shear 4 sheep in one hour. Mr Rich is prepared to pay Mr White $3 per hour and Mr Wong $1 per hour. Mr Wong does not mind because he knows that Mr White can do the job three times faster than he can.
In 25 hours, White sheared 25 x 12 = 300 sheep. He was paid $25 x 3 = $75.
In 25 hours, Wong sheared 25 x 4 = 100 sheep. He was paid $25 x 1 = $25.
Therefore, Rich paid a total of $100.
Now watch what happens when they imposed a minimum wage of say $2 per hour.
In 25 hours, White still sheared 300 sheep and he was paid $75.
In 25 hours, Wong still sheared 100 sheep but now he would have been paid $50.
This would have cost Rich a total of $125.
But Rich did not become rich because he was stupid. So he decided to fire Wong and let White do all the sheep by himself.
Since White can shear 12 sheep in one hour, he finished the job in 400/12 = 33.33 hours. He was paid 33.33 x $3 = $100.
Result? Rich spent the same as before minimum wage. White gets more pay while Wong is jobless. Wong also lost the opportunity to gain experience and in time would have qualified him a higher salary.
This is a simple illustration of how minimum wage causes unemployment among the low skilled. It does not help the poor. It makes things worse for them.
but employers can make those holding S-pass to do this.
pay them $x which is the minimum wage of a S-pass holder, report $x as the actual wage then receive $y from the employee.
this is like a loop hole and makes minimum wage good on paper.
minimum wages could also filter out foreigners and leave it to the locals. but with the same loop hole, it is not going to work.
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Originally posted by hastings:
Oh I get it. You are asking me why is it that CPF interest rate varies according to the bank rates.
Actually, all interest rates tend to fluctuate together. The interest rate for CPF ordinary account reached a peak of 6.5% in the period 1974 to 1985. That was when the US was suffering from terrible inflation and the Federal Reserve (the US central bank) raised interest rates.
The US is the world's largest economy and what they did will affect the rest of the world. So our interest rates went up as well. Our government could invest its cash in higher interest rate bonds and so pay CPF members higher interest rates.
But when interest rates go down, their investments will also obtain a lower interest rate. So CPF interest rate has to come down.
the problem is now US raises the interest rates, the Sibor also rises however do we see any positive changes in the bank interest rate and CPF rates?
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Originally posted by SMB145B:
the problem is now US raises the interest rates, the Sibor also rises however do we see any positive changes in the bank interest rate and CPF rates?
the banks dun need to follow rising rates so the properties people can still tahan or else trigger recession, how?
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Originally posted by SMB145B:
but employers can make those holding S-pass to do this.
pay them $x which is the minimum wage of a S-pass holder, report $x as the actual wage then receive $y from the employee.
this is like a loop hole and makes minimum wage good on paper.
minimum wages could also filter out foreigners and leave it to the locals. but with the same loop hole, it is not going to work.
They are not supposed to do that. If they get caught, they are in big trouble. But it does demonstrate what I said is correct. The government imposed a minimum wage on S pass holders to lower employment of foreigners by making foreign workers more unaffordable.
They must never do that to Singaporeans. If you make cars more expensive by imposing COE, PARF, ARF, you get fewer cars sold. If you make workers more expensive by imposing minimum wage, fewer workers will be hired.
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Originally posted by SMB145B:
the problem is now US raises the interest rates, the Sibor also rises however do we see any positive changes in the bank interest rate and CPF rates?
This is not true. US interest rates have been steady and not rising. Our SIBOR did rise from 0.5% at the begining of the year to about 1% today. Our CPF ordinary account interest rate recently went up from 2.5% to 3.5%.
In general, it is better for the economy to have low interest rates. High interest rates may be good for depositors but bad for lenders. Most of us have housing loans to pay. So we don't want high interest rates.
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So.... Which political party are you from?
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Originally posted by hastings:
They are not supposed to do that. If they get caught, they are in big trouble. But it does demonstrate what I said is correct. The government imposed a minimum wage on S pass holders to lower employment of foreigners by making foreign workers more unaffordable.
They must never do that to Singaporeans. If you make cars more expensive by imposing COE, PARF, ARF, you get fewer cars sold. If you make workers more expensive by imposing minimum wage, fewer workers will be hired.
it does not make them unaffordable. it just makes them vulnerable to such manupulation. don't you hear someone saying "cheaper, better and faster"? but then again, cheap and good is not fast; cheap and fast is not good; good and fast is not cheap.
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Originally posted by SMB145B:
it does not make them unaffordable. it just makes them vulnerable to such manupulation. don't you hear someone saying "cheaper, better and faster"? but then again, cheap and good is not fast; cheap and fast is not good; good and fast is not cheap.
Oh but it does. You cannot assume all employers break the law. By making foreigners less affordable more Singaporeans will be employed at a higher salary. Of course, our government must not overdo it. Or companies will relocate to Vietnam or elsewhere.
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These people need to read up on legitimate sources instead of the alternative sites that post lies!
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There are MSM and social and political websites. No such thing as alternative sites.
Anyone can go to any websites to post lies, MSM is no exception. it is advisable to read with wisdom, sensibility, MATURITY, and open mind. Check what are posted to see if they are posting the truth.
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Originally posted by Wawawang1982:
These people need to read up on legitimate sources instead of the alternative sites that post lies!
You are absolutely right. I source my info from places like WHO, Bloomberg, Wall Street Journal, World Bank etc.
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Originally posted by ILikeHippo:
"Even if the government did lose every single cent of our CPF money, they can still pay us. How? Simple. They can always print more money."
You sure bo?
Of course. That is what the Americans are doing.
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Originally posted by hastings:
If an employer underpays you, you can always look for another job that pays higher - provided you have the skills to justify the pay. At the end of the day, it is your skill level that determines your pay.
If you cannot find another job that pays higher, you better go for retraining.
What is the minimum wage for S pass holders? The minimum wage for S pass holders is to stop employers from hiring too many of them following complaints of too many foreigners.
The purpose of minimum wage is always, since the time it first started in Australia and NZ, to prevent employment. Let me give you a simple illustration to convince you, since you do not appear convinced.
Since minimum wage started in Australia/NZ, I will give you an Aussie illustration.
It is sometime in the 1890s. Mr White is an experienced sheep shearer. Mr Wong is just fresh of the boat from China and inexperienced in Aussie jobs like sheep shearing. Also the job needs strength and White is bigger and stronger than Wong. Mr Rich is a wealthy owner of a sheep station (Aussie slang for ranch or farm). He has 400 sheep that needs shearing.
Mr White can shear 12 sheep in one hour. Mr Wong can only shear 4 sheep in one hour. Mr Rich is prepared to pay Mr White $3 per hour and Mr Wong $1 per hour. Mr Wong does not mind because he knows that Mr White can do the job three times faster than he can.
In 25 hours, White sheared 25 x 12 = 300 sheep. He was paid $25 x 3 = $75.
In 25 hours, Wong sheared 25 x 4 = 100 sheep. He was paid $25 x 1 = $25.
Therefore, Rich paid a total of $100.
Now watch what happens when they imposed a minimum wage of say $2 per hour.
In 25 hours, White still sheared 300 sheep and he was paid $75.
In 25 hours, Wong still sheared 100 sheep but now he would have been paid $50.
This would have cost Rich a total of $125.
But Rich did not become rich because he was stupid. So he decided to fire Wong and let White do all the sheep by himself.
Since White can shear 12 sheep in one hour, he finished the job in 400/12 = 33.33 hours. He was paid 33.33 x $3 = $100.
Result? Rich spent the same as before minimum wage. White gets more pay while Wong is jobless. Wong also lost the opportunity to gain experience and in time would have qualified him a higher salary.
This is a simple illustration of how minimum wage causes unemployment among the low skilled. It does not help the poor. It makes things worse for them.
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Open eyes with mind closed.
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Originally posted by Clivebenss:
Open eyes with mind closed.
sibeh ho chio ...........
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Have to accept new ideas and analyse or else get senile soon.
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the nonsense has stopped?
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Originally posted by ILikeHippo:
"Even if the government did lose every single cent of our CPF money, they can still pay us. How? Simple. They can always print more money."
You sure bo?
Obviously TS did not know history like what happened to Germany's economic when their government print more money in 1924 or even Argentina when they try to do the same in 1989
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Haiz, he dont know this.
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Lol I like the last picture. It is good!!