Labour Income and Savings in Singapore

In a typical poor society, we can see the damage of vicious poverty cycle to the residents of the country. People are poor and not educated. There are no jobs. The government is poor. Poor people cannot save and therefore do not have capability to invest in human capital and in living environment. Foreign aids can help provided the aids can enhance the capacity building to promote economic development. On the other extreme, in some societies, workers have income but the majority of workers do not save sufficiently such that either they do not invest sufficiently in human capital of themselves and that of their children or the government has to bail them out. This will produce entitlement mentality and consequently a persistent budget deficit and the budget deficit will get bigger due to moral hazard, among other factors…