Instead of taxes, WP propose to fund education through borrowing. This is the WP's way of giving you Nordic-type of benefits without the Nordic-type of taxes.
With their proposal, they can even lower taxes for you. How? By borrowing.
Free education. Free healthcare.
WHO PAYS ? Ultimately, it's still YOU and not just you, but YOUR CHILDREN as well.
The annual budget for Education is $13 billion.
Just think how taxes can be reduced when a government borrows this sum to spend instead of collecting taxes.
Singaporeans will be so happy because - unfortunately - most people live in the present and do not own their future. In other words, the future is not real to them. This is why populism will win votes. People do not see the future consequences.
The happiness will be short-lived.
Because nothing is free.
Borrowing does not give you free money to spend.
When you borrow for a recurrent expenditure like education, it is an ever growing debt that has to be repaid.
So, you borrow $13 billion in one year. The next year, while you are still servicing the loan, you borrow another $13 billion.
You now have a bigger loan to repay.
Repeat this year after year. You have a growing debt that snowballs into a monster where you are just paying off interest.
When interest rate goes up, you are done for.
Is that what you want? Do you understand what you will be getting into?
Sri Lanka is a cautionary tale for us. Sri Lanka is bankrupt today because it kept borrowing to fund recurrent expenditure.
Singaporeans have been a very disciplined people supporting policies including tough ones because we understand the rationale behind them and we care for our children and their future too.
We have the ability and the intelligence to analyse deeper the alternative proposals of opposition parties. Many of us love Singapore and want Singapore to thrive, to be a place we are proud to be, a home truly, where people are not selfish, and everyone does their part to keep Singapore a shining red dot.
Singaporeans will be so happy because - unfortunately - most people live in the present and do not own their future. In other words, the future is not real to them. This is why populism will win votes. People do not see the future consequences.
The happiness will be short-lived.
Because nothing is free.
Borrowing does not give you free money to spend.
When you borrow for a recurrent expenditure like education, it is an ever growing debt that has to be repaid.
So, you borrow $13 billion in one year. The next year, while you are still servicing the loan, you borrow another $13 billion.
You now have a bigger loan to repay.
Repeat this year after year. You have a growing debt that snowballs into a monster where you are just paying off interest.
When interest rate goes up, you are done for.
Is that what you want? Do you understand what you will be getting into?
Sri Lanka is a cautionary tale for us. Sri Lanka is bankrupt today because it kept borrowing to fund recurrent expenditure.
Singaporeans have been a very disciplined people supporting policies including tough ones because we understand the rationale behind them and we care for our children and their future too.
We have the ability and the intelligence to analyse deeper the alternative proposals of opposition parties. Many of us love Singapore and want Singapore to thrive, to be a place we are proud to be, a home truly, where people are not selfish, and everyone does their part to keep Singapore a shining red dot.
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