The Greed Epidemic

According to a recent Nielsen survey, consumer confidence in Singapore has fallen to an all-time low. The media has also been hovering over the economic meltdown for some time, trying, in vain, to explain to the people of Singapore what exactly went wrong. What did go wrong? Why the recent carnage on the Stock Exchange of Singapore, why the Lehmann Brothers fiasco, and why the rash of bank failures? Little people have been mortally wounded -- people who trusted these institutions with their life savings.

For the past few days, my wife and I had the experience of taking care of my four-year-old nephew and eight-year-old niece, while their parents took a brief vacation. During the few days we spent with them, I re-discovered children's programs on television. What an education I received in just a few days, convincing me that commercials on children's television programs are one of the most seductive, sinister, early stages of consumerism.

Consumerism is what makes our lust driven economy work. Remember the advice given to Singaporeans by Senior Minister Goh Chok Tong? "You should continue to spend on life's little pleasures," we were told. The government of Singapore is telling us to keep consuming, for surely if we stop consuming our economic wheels will fall off, and we will all perish. Consume or die!

Pervasive Consumerism
As I watched a few days of children’s programs with my four and eight-year-old nephew and niece, I discovered that the commercials receive as much, or even more, rapt attention than the programs themselves. The message of these commercials is blatant and obvious. Children are being programmed, at any early age, to be consumers. They are being trained to consume things on their own. During or immediately after every commercial I was informed by our little consumers-in-training that they really wanted and/or needed the gizmo, gadget, diversion or junk food just advertised.

While commercials shown during children's television programs are a problem, there is a bigger and far more malignant epidemic sweeping across our nation. I thought of the needless economic massacre suffered by many, defaulting on credit lines and loans, losing their homes -- people who had been seduced by consumerism into attempting to achieve the so-called Singapore dream by the unremitting use of pieces of plastic that fit neatly into their wallets and purses.

I pondered the marketing gurus who, armed with a basic understanding of human psychology, are able to motivate, persuade and manipulate others for their own gain.

Rapacious Greed of Big Business
Today's adults are always yesterday's children. They are simply products of decades of self-indulgence. When I think of our greedy, ‘me-first’, ‘get-it-now-before-you're-too-old-to-enjoy-it’ self indulgent culture, I think of Nick Leeson, who, over a decade ago, during a time when today's young adults were consumers-in-training, led to the downfall of Barings, United Kingdom’s oldest merchant bank, by fraud and deceit. He was eventually sentenced to prison, but his name came to symbolize the rapacious greed of big business.

Wall Street a classic Oscar-winning 1987 hit was a movie about corporate greed. In the movie, Michael Douglas said, "The point is, ladies and gentleman, that greed -- for lack of a better word -- is good. Greed is right. Greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms -- greed for life, for money, for love, knowledge -- has marked the upward surge of mankind."

Decades later and post Nick Leeson, the greed epidemic continues, unabated. Even Town Councils are consumed by it.

Indeed, our entire nation is consumed by it.

While we all enjoy buying things for children, one of the most cherished lessons we can leave with the younger generation is that they do not deserve, nor will they receive, everything their little hearts desire. Further, if they were to ever get everything they wanted, they would not be happy - the fires of lust would burn hotter and hotter, voraciously consuming everything in sight.

J.A.C. Mackie, an Australian political scientist who visited Southeast Asia regularly for more than two decades, said Singapore had become "the quintessence of consumerism and materialism." Although Australia has a reputation for hedonism, contemporary Singapore, Mackie says, "makes Australia look rather spiritual". About twenty-five centuries ago, the Chinese philosopher Lao Tze cautioned against consumerism when he said, “Chase after money and security and your heart will never unclench. Care about people’s approval and you will be their prisoner. Do your work, then step back. The only path to serenity”.

In The High Price of Materialism, Tim Kasser, a psychology professor from Knox College, offers a scientific explanation of how our contemporary culture of consumerism and materialism affects our everyday happiness and psychological health. In the book, Kasser cites numerous studies as he makes a compelling case that compulsive consumerists and materialists are lonely, narcissistic, hampered in relationships, compulsive, insecure and disconsolate.

Beyond Acquistion of Material Goods
A study of 178 countries based on life expectancy, consumption levels and happiness by the New Economic Foundation's Happy Planet Index places Singapore at 137 out of 178 nations and at the bottom position in South-east Asia. "Singaporeans fret about financial security and retirement. Many Singaporeans are concerned they do not have enough money to grow old gracefully, and that seems to make them unhappy," says Philip Merry, Founder of Global Leadership Academy, as they were searching for Singapore’s happiest person. He adds, "I want people to just look at (the fact) that happiness is all around you, but most of all it's inside, and we don't spend enough time just counting our blessings and realising just how fortunate we are."

So perhaps instead of trying to buy our happiness and self worth or worry about what other people think about us, we should focus and decide what we value as an individual, to think for ourselves what will make us happy so we can move toward that. We have to base self-worth and happiness on our own terms. Obviously, this will be different from person to person. One person may find self-worth and happiness in helping students learn to read and write. Another may find it in their spirituality. Another may find it in helping to save the rainforests. But whatever it is it must come from within and we must each pursue things that have a value higher than the acquisition of material goods.

Feedback: Budget 2009 - Tax-cuts not the way to go

I am concerned that another round of personal and corporate tax cuts may leave the government unable to play its essential roles in promoting the common good and preserving essential community services and support.

Although these tax cuts may seem attractive in helping to draw more foreign talents and investments especially in these times of economic slowdown, the cuts should be avoided as these taxes should be the main means of supporting social welfare. Further to this suggestion, the government should also not raise GST further and should pare down the use of GST for providing public assistance.

The Minister for Community Development, Youth and Sports, said in an exchange in parliament on March 9, 2007: “We can always do more (in providing public assistance) and we can always raise GST further.”

The raising of GST further, will put a huge tax burden on the poor. Some studies show that the lowest 20% of the population pay more than 15% in taxes, while the top 1% of the population, merely pay less than 5% in taxes. As the poor or the “new poor”, typically spend all their money on everyday necessities, the further increase of GST will be regressive.

Although people tend to shrug off GST as there is no tax-return or large lump-sum payment involved, further increases to the GST should be avoided as it is a myth that GST is fair because it taxes consumption.

Although perhaps 80% of Singaporean families now have refrigerators, stoves, color TVs, telephones, radios, VCRs or DVD players, microwave ovens, washing machines and cell phones, prosperity cannot be measured by how much food you have stored in your refrigerator or by how many DVDs you have stacked on the shelf. Prosperity is but a sense of financial security and peace of mind. And by that measure only a small percentage of the middle class (or the “sandwich class” as the Prime Minister acknowledged in his National Day rally 2008) enjoy it today, and certainly none of the poor.

Some studies suggest that 25 percent of “sandwich-class” families are at a high risk of slipping out of that class entirely and another 44 percent don’t have what they need to remain securely in it. There is a sense that social mobility is reversing as the cost of essentials outpace actual income.

The 2009 budget has to ensure that the lower-income have enough help to move up and that “sandwich class” gets back its economic footing, without which any talk about shared prosperity is feint.

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After note:

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I was at the dialogue session on budget 2009 today, chaired by Dr. Amy Khor and Mr Ng Wai Choong Deputy Secretary (Policy), Ministry of Finance. Wai Choong mentioned that the focus of the 2009 budget would be on helping businesses to sustain their competitiveness. I aired my concern that in the midst on focusing on the competitiveness of businesses, the needy and also the middle class cannot be forgotten. There must be enough assistance and incentives given for these groups of people especially in these times of economic crisis, which could be drawn out.

Some people from the business community were there to advocate that the government should make it easer for talented foreigners to come to Singapore to work as they demand a lower salary. One businessman actually said that he needs to pay a top rate chef from China only $1200 per month but no Singaproean top rate chef would work for that salary. Another business person said that China workers are willing to work for $2 per hour. I highlighted the fact that even if !% of China are deemed “more talented” than Singaporeans, it would mean displacing almost the entire population of Singapore. I asked, “Can these displaced Singaporeans seek jobs in China?”

But anyway, we all should play an active role in citizenry in providing the feedback for Budget 2009. Click on THIS LINK to go for the next dialogue session. You can also provide your feedback here: http://www.singaporebudget.gov.sg/.

Poor Examples for Pro-Establishment

In her article, "High growth brings high risks, for nations too", ST political Editor Chua Lee Hoong picks a quote from Minister Mentor Lee Kuan Yew, cautioning that Singapore can be ruined in five years, if the opposition is voted in in a freak election result; compares the bizarre collapse of Lehman Brothers and the bankruptcy of Iceland, supposedly to make a point that established leadership (supposedly that of the PAP) is needed to prevent Singapore from collapsing. If that was indeed Lee Hoong's intent than she picked poor examples to indicate that established leadership is indeed necessary to prevent the collapse and/or the bankruptcy of our nation.

The Chief Executive of Lehman Brothers, Richard S. Fuld Jr, is an established leader. He has been with Lehman Brothers for 42 years, has never worked anywhere alse and he himself labels himself a "Lehman Lifer". So why could not this veteran prevent Lehman from falling? He himself does not know the answers. Mr. Fuld says, "I wake up every single night wondering what I could have done differently?" The fact is Mr. Fuld made decisions to the best of his ability at that time, given the information he had.

And under whose watch did Iceland go bankrupt? It was under the leadership of the established and biggest political party in Iceland, the Independence Party! For those who did not know, the Independence Party was formed in 1929 and since then, all the Chairman of the the chairmen of the party have held the office of the Prime Minister of Iceland. What caused the collapse of Iceland? It can be argued that besides the international upheaval, it was also the pursuit of at least 17 years of neoliberal economic policies.

What are neoliberal economic policies? Neoliberal economics is a mode of global market capitalism based upon free trade; essentially, the fewer hindrances (e.g., protectionism of domestic labor or commodities), the closer an economy can be said to be enshrining neo-liberal values. It is a version of capitalism that is relatively pure and uncompromised by communitarian or welfare demands. Politically, neo-liberalism refers to the project of embedding market values and structures not just within economic, but also within social and political life; its objective is a reshaping of power relations. By this definition, the Singapore government (like the Icelandic government of at least the past 17 years), has surely not only adopted neoliberal economics, but has made these ideologies the cornerstone of economic policies in Singapore.

So, using the examples cited by Lee Hoong, it is the established leadership of the present Singapore government, who has adopted unrestrained neoliberal policies, who may be the greatest threat for Singapore going "belly-up".

So what are the safeguards against the collapse of Singapore as a nation? While being influenced by, and meeting the needs of, the finance community, we should stop pursuing an ideology of neoliberal "market fundamentalism” and pay attention to real human needs. The definition of progress and success cannot be measured in material terms alone; there are other factors which must be considered such as environmental issues and perspectives of emotional richness or social well being.

Just the Messenger? Then SP Services Should Petition EMA!

"We have nothing to hide," says Mr. Quek Poh Huat Group Chief Executive Officer of Singapore Power, launching a spirited defense against public outrage against 21.5 percent increase in electricity tariffs. His key message was that blaming SP Services for high tariffs is akin to shooting the messenger. Hi defense is that SP Services does not generate electricity; it merely transports power from the generation companies (gencos) to end-users, selling to households without any price mark-ups.

If this defense was indeed true, SP Services should petition the Energy Market Authority (EMA) to prevent the three gencos - PowerSeraya, Senoko Power and Tuas Power - who together account for 80 per cent of Singapore's power-generating capacity from charging customers excessive rates especially when it is impossible to import cheaper electricity from competing gencos into the region. With the three gencos controlling 80 percent or more of the supply in Singapore, they have the ability to corner the market and dictate excessive, unjust or unreasonable prices to the power transporter, SP Services and its customers.

SP Services should petition EMA to prevent gencos from charging excessive prices to energy transport companies and their customers when the market is not workably competitive.

The SP Services should petition EMA to:

-  Order generation companies to refund to customers all overcharges to date.

-  Revoke the authority of generation companies to charge market-based rates when
 energy imports from outside sources are not available.

-  Limit the future prices of generation companies during congestion periods to actual
 production costs.

-  Require generation companies to divest of some generating units if the companies
  want to retain the ability to charge market-based rates in the future.

-  Require public disclosure of price reductions imposed by the ISO when it finds
  generation companies exercising market power (what prices were reduced,
  when and why).

-  Limit the ability of the generation companies companies to impose excessive limits
  on unit operations

If SP Services believes that gencos have an obligation to be fair to consumers and that consumers must be protected as the new energy market evolves, this is the right course of action to take. SP Services definitely has an obligation to its customers to monitor the market and bring to the attention of regulators market inefficiencies and imperfections; especially as Singapore moves from a fully regulated energy market to a competitive market for there will be obstacles that regulators need to address so the market will benefit all participants.

The Bleeding Hearts

In an article titled "A new buzz at Hong Lim", the political editor of The Straits Times, Ms. Chua Lee Hoong said, "...The man who is proving to be the park's most frequent user...is no bleeding heart social activist..." In one fell swoop, she labeled all social activists "bleeding hearts".

But what is the political definition of the word "bleeding heart"? Who first used the word, and under what circumstances? The Merriam-Webster Dictionary defines "bleeding heart" as "a person who shows extravagant sympathy especially for an object of alleged persecution", the key words there being 'extravagant sympathy', meaning sympathy not ordinarily felt by anyone else; and 'alleged persecution', meaning the persecution is not proven. The phrase "bleeding heart", became popular in early 20th century America. Eleanor Roosevelt popularized the term by using it to refer to 'liberals'. In the yearly years of the last century, some people felt that government and private charities should do more to help relieve the suffering of the sick, homeless and unemployed. Those that didn’t , began calling these well meaning citizens “bleeding hearts”.

The treatment of the homeless, sick and unemployed by early 20th century America was strongly influenced by the ideology of social Darwinism, particularly the EUGENICS movement. The eugenics movement was based on the belief that selective breeding and breeding control would rid society of the inferior genetic material that was responsible for crime, mental illness, and retardation. Sterilization laws were an important tool of the eugenics movement. If the homeless, sick or unemployed were determined to be feeble-minded, it was not uncommon for them to be institutionalized and sterilized. The America of the early 20th century also drew a distinction between the deserving and undeserving poor. The deserving poor were considered worthy of public assistance because the causes of their poverty were beyond their individual control. The undeserving poor, however, were poor due to their flawed characters and personal faults, and were thus unworthy of aid. It was believed that if the undeserving poor were given assistance, their numbers would simply increase.

History has shown that those labeled as "bleeding hearts" were neither extravagantly sympathetic nor were the persecutions, mere allegations. The "Bleeding Hearts"of the day were, as are the social activists of today, the conscience of the society and the champions of the day against these discrimination and flawed mindsets.

Such a write-up by a political editor of the mainline newspaper begs the asking, "why were social activists labeled as such?" Is it to paint the issues championed by the social activists as being merely trivial? Or because she wants to emphasize that that the Singapore government "have done better than communist and socialist countries in looking after the poor" and those that advocate otherwise are merely overly sympathetic? Or perhaps she feels that those that advocate that the governments should do more for the needy are actually liberals, who would squander the wealth of the conservative government of Singapore if they had their way? But one should perhaps give her the benefit of doubt that she used "bleeding heart" as an adjective to describe social activist because the two words seem to go together in her mind.