The Big Debate
Over ‘eat cheaper’ advice
Government’s inflation advice to Singaporeans didn’t come across too well. Compiled by Littlespeck.
Nov 14, 2007

With widespread rocketing prices, the following advice by the Minister for Trade and Industry, Lim Hng Kiang in Parliament has stirred some strong reactions: -

"First, the CPI measures average changes in prices across all households. Whether there is an increase in the cost of living for a particular household depends on that household’s spending patterns. Switching to cheaper products can reduce the cost of living despite
a rise in the CPI." (Lim Hng Kiang)

(1) Mollymeek retorts:

OK, if this sounds cheem (complicating), allow Molly to paraphrase it in a way that bimbos can understand: "You can lower your cost of living easily. Instead of buying Gucci products, switch to Giordarno."

It's the Elite way of saving money.

Don't ask me what to do if you can't even afford Giordano in the first place. Maybe you can try looking for Xiong Mao Pai...

Molly supposes that the next suggestion she is going to get is for her to have two meals instead of three. Or to go naked instead of wearing lingerie.

.. and later..

I do have an issue with what these people are suggesting as ways for
commoners to cope with inflation - buy fish instead of chicken, buy cheaper things. Not that the suggestion to buy cheaper things is wrong in itself…

.. But it works better for some people than for others. For people who are already struggling to buy the cheapest things they can find, what can they do?..

.. The economy may be doing very well, but this does not necessarily mean that people are all doing very well...

Read in full:
http://mollymeek.livejournal.com/173464.html

(2) Perhaps the Minister is a Little Confused..
By mr wang says so

.. Either that, or he is engaging in obfuscatory political doublespeak:

But of course a rise in the CPI reflects an increase in the cost of living. After all, the CPI is meant to track the cost of living. If the CPI does not track the cost of living, then what would you want it for?

As for individual households switching to cheaper products, well, in fact, they have to. That’s the effect of inflation - your dollar has less purchasing power. Therefore with the same amount of dollars, you can only buy cheaper products.

Minister Lim must be confusing “cost of living” with “standard of living”. Cost of living means the cost of maintaining a certain standard of living.

In turn, standard of living refers to the quality and quantity of goods and services generally available to a certain class of people (for example, average Singaporeans).

Instead of saying that “switching to cheaper products can reduce the cost of living”, Minister Lim would have been more accurate to say, “switching to cheaper products can lower the standard of living”.

For example, instead of living in a 5-room HDB flat, you can live in a 1-room HDB flat (a cheaper product). Instead of having chicken rice and vegetables for lunch, you can just eat plain porridge (a cheaper product).

Living in a 1-room HDB flat and eating plain porridge constitutes a lower standard of living. So yes, by switching to cheaper products, you can lower your standard of living. And a lower standard of living does cost less to maintain.

In summary, what is Minister Lim's advice to you? To deal with inflation, lower your standard of living.

Wow, and for telling you that, he even gets a world-class ministerial salary. I bet inflation doesn't bother him much. - Posted by Mr Wang Says So

Comments:
Anonymous said...
Doesn't matter what the minister say. There is no competition in politics in Singapore so he will still be the minister with million dollar pay. His fate is all up to Lee Hsien Loong or maybe Minister Mentor Lee (Kuan Yew), not the opposition or the electorate. This is not the first time they say things which insult people's common sense. What to do?

Anonymous said...
It doesn't take much to win the hearts of the masses, via e.g. handing out coupons on a per household basis that allows them to buy certain quantities of certain staples (e.g. rice) at near cost.
Leadership is about winning the logos, ethos and pathos. It is unfortunate that 'coat-tail'ing has resulted an abysmal lack of ethos and pathos - things that can only be learnt by standing, fighting and winning an election, a regret that Minister Mentor has reiterated.

Anonymous said...
What Lim Hng Kiang said about cheaper products reminds me of what one of Chen Shui Bian's minister said about the hike in the prices of vegetables in Taiwan recently: One can always switch to buying cheaper vegetables at 5 taiwanese dollar per kg (without realising that bean sprouts was the only choice available at $5/kg).
It only shows how disconnected our overpaid ministers are from the realities of peasant life.

Read:
http://mrwangsaysso.blogspot.com/2007/11/perhaps-minister-is-little-confused.html

(3) High Cost Of Living? Buy Cheaper Products, Says Minister
by theonlinecitizen (TOC)

If people are complaining about higher prices, it is no answer to tell them to find cheaper goods. The point of the complaint is that people are finding it difficult to find cheaper goods.

No bread? Eat cake!

The website adds: “Yesterday in Parliament, Mr Lim Hng Kiang, Minister of Trade and Industry admitted that these were due to a ‘one off effect of GST hikes’ and mainly higher food prices.

In his response to MPs questions today, he also had this advice for families hit by higher prices: “Switching to cheaper products can reduce the cost of living despite a rise in the CPI.”

TOC would like to point out the inadequacy of his answer: if people are complaining about higher prices, it is no answer to tell them to find cheaper goods. The point of the complaint is that people are finding it difficult to find cheaper goods.

Comments (Excerpts)

macabresg Says:
“Switching to cheaper products can reduce the cost of living despite a rise in the CPI.”
That’s for now. When the economic crisis strikes, we will have to switch to even cheaper products. When the GST hike strikes again after the 2010/2011 elections, we probably have to eat grass.

evozero Says:
It’s interesting to note that we have a Price Control Act. Maybe it’s time to dust off the covers and take a look…

Gary Teoh Says:
In order to save cost,recently I make it a point to go JB once a week to shop for grocery and top up petrol.Though I have to endure traffic jam,it is still worth it.

Marc Says:
I suppose if one cannot find cheaper products, Lim Hng Khiang will be telling everyone to eat less food.

Nicholas Says:
Then in that case lets switch to a “cheaper” (alternative) ”product (party) too the workers party, coz PAP government and ministers need high salary to “maintain”.

Sammy Says:
Yeah right! The peasants have to go for ‘cheaper’ alternatives? How much cheaper can you go if you are already eating at hawker centres? It’s not like the majority of us poor peasants eat Chicken Rice at SICC or at the Meritus Mandarin! DUH…

Gavman Says:
I recall one candidate saying that her favourite chicken rice was at SICC. Maybe our ruling elite are used to a comfortable life with 6 or 7 figure paycheck that they don’t feel the pinch. How can they empathise or understand those that they purport to represent and serve?

family man Says:
There are many things that is within the control of the Government - they raised the GST to 7 percent and that added to the increase in our cost of living.
Medical fees - they are aiming to have an undersupply of beds instead of slight oversupply - that will ensure prices of beds going up! There is much that government planning can help - but they are saying they cannot do much - but they will have means testing in place - but they will help subsidise our HDB flats which are sold not at cost plus format - but market price format.
With market price of condo hitting million dollars - we are all gonna die.

kitsura Says:
There is no cheaper utilities or transport available. Are you telling everyone to walk to work and start farming our own energy?

Lawliet Says:
I exclaimed when I saw the projected inflation rate and I thought this was a figure I would never see in Singapore. The Minister’s “advice” didn’t really sound any good either and I was wondering if he was kidding when he said it.
Let’s just sit back and watch our real income fall?

Read
http://theonlinecitizen.com/2007/11/13/higher-food-prices-buy-cheaper-food-says-minister/