Gini Coefficient

Recently there was a discussion of an implementation of a minimum wage policy for the city state's economy.

The mother of all trade unions in the state, the National Trades Union Congress (NTUC) has came out strongly against such an implementation. The secretary-general cited highly negative repercussions like jacking up business costs and joblessness, costs of living, while eroding the economy's competitive edge. Furthermore, it would does little to help the income inequality.

On one juncture I read a low brow assertion. Singapore National Employers Federation (SNEF) who is on the same side as NTUC, claims that although every advanced economy like taiwan, South Korea or Japan has minimum wage... Germany, Denmark, Italy, Sweden and Switzerland have a relatively narrow income gap even without a minimum wage. "Countries with or without the minimum wage can have a relatively low GINI COEFFICIENT." it said, referring to the index that measures income distribution in a country. It is stunningly interesting to note the countries cited, and their fundamental differences.

Seriously that is a shallow assertion.

The International Labour Organisation, which has 90 percent of its member with a mimimum wage policy, is toothlessly careful in asserting itself. It states that the minimum wage is effective only when the income gap is growing as a result of wages collapsing at the bottom. Sometimes people make a plain concept sound sophisticated. And I find it a little amusing that this actually makes a point.

In any case, the income gap situation is stated to be led by top-income earners in the country. Suggestion that progressive tax on the rich is more effective is also being thrown up. How nice. How simple. Only that it is as flawed as communism.

The conclusion is that the union continues to believe in their minimum skills approach as opposed to a minimum wage one, and to help the lowest bracket with Workfare Income Supplement And Workforce Skills Qualification system.

The conclusion, quoting Ah Keng, IS THE SAME!!