damn it.
seriously, i mean, damn it.
my econs failed me this time.
in the previous post, i talked about opportunity costs and inflation.
and most importantly, increasing wages to ease the negative effects of inflation.
sorry, i'm so damn wrong.
sorry, but increasing wages fuels further inflation.
when productivity and efficiency remains relatively constant, increase in wages is not justifiable!
firstly, assuming the lowering in import expenditure in other countries due to worldwide inflation, and singapore's import expenditure remains relatively higher compared to others, singapore's exchange rate weakens.
thus, causing import prices to become more expensive, fueling inflation.
secondly, the firms increases the cost of their goods to protect profit margins due to the increase in wages.
thirdly, increasing wages puts off firms from operating in singapore.
other than the ones mentioned above, there are still many many more reasons.
inflation inflation inflation.
when's the global thunderstorm going to subside?
i think it has come to a time whereby greed is taking its toll on us, the human race.
look, the world is changing, not for the good but for the darker side.
just look at what's in the headlines in the past few years.
'oil prices hits a record high of US$140 per barrel', 'heatwaves loom as wildfire rages across california' and the list goes on, till the cows come home.
and today, 'G8 leaders tussle on climate'.
no one gave any of us in the world the right to own the earth's resources, not even Mother Nature.
i'm sorry but no one did give any one any permission to exploit the use of these resources and depriving their other counterparts of them.
regarding the oil issue, i believe greed is the ultimate evil behind it.
greed for more oil by the 'dragon of the east'.
and greed for money by the oil producing countries and the cartel that controls majority of the oil supplies.
sorry, i shall stop here.
my eyes are closing and those toothpicks cant hold my eyelids up any longer.
shall share my views on this issue again some time.
and layleng, please do something to save the earth. (: