Time for PAP to save Singaporeans from extinction
Mr Lee Kuan Yew, the first Prime Minister of Singapore, suggests a huge baby bonus. He wants to show that big money has no effect on fertility rate. The only way is to test it out.
So far, the Singapore government has been providing very small amounts to try to increase fertility rates.
If former prime minister Lee Kuan Yew were in charge of Singapore today, he would introduce a baby bonus equal to two years of the average Singaporean's salary.
This is not to boost the country's abysmal total fertility rate of 1.2. Rather, Mr Lee would do it to "prove that super-sized monetary incentives would only have a marginal effect on fertility rates".
My earlier post
Will Lee Kuan Yew save Singaporeans?
calls on Mr Lee Kuan Yew to save Singaporeans by distributing a citizen-ownership dividend of $9,000 to every baby, annually for life.
In the recent comment (August 2013) by Mr Lee Kuan Yew, he suggests a sum of two times the average annual salary.
The average salary in 2011 is $4334 a month (MOM data). Taking a 13-month annual wage, that is $56,342. This two year value is $112,684.
Let us see how the money can be given out. This amount can be distributed in
a) a lump sum of $112,684.
b) a 20-year annual distribution of $23,000. Assume that the original amount of $112,684 is invested by Temasek Holdings, which has reported a long term investment return of 20%.
c) an annual distribution of $22,500 for life. Again, assume that the original amount gets 20% invested return.
Compared with the call for a citizen-ownership dividend of $9,000 a year, Mr Lee Kuan Yew's proposal is even more generous.
The only thing left to do is for PAP to honour its founding father Mr Lee Kuan Yew, and put his proposal to the test. Implement the policy for 20 years and see if PAP can save Singaporeans.
P.S. Temasek Holdings reports many investment returns, depending on the period of investment, S$, US$, etc. Even if we use one of the lower numbers (10%), the annual distribution is still a super-sized $11,000 a year, for life.