Why does the Singapore government give money to residents?

1; The Singapore government does this for a reason. According to data released by the Monetary Authority of Singapore and the Ministry of Trade and Industry in January, Singapore's overall inflation rate in 2022 will be 6.1%. It should be said that the inflation rate is not low. If the government does not increase the subsidies for households, the low- and middle-income groups will face greater living pressure. Obviously, this is not conducive to social stability and is not good for the people. What is conducive to residents' harmony may even affect residents' trust in the government. Therefore, we must make a positive gesture in this regard to make residents feel that the government cares about them.

2;

It is worth noting that when it comes to distributing money to residents in Singapore, it is not a "forcible" payment by the government, nor is it the government's financial responsibility to control the world, but by increasing the income of the rich. tax to solve the problem of providing money to the poor. You must know that if we simply rely on the government to "hardly" issue money, when the government's financial resources are limited, it can only be solved by issuing currency. The result of issuing currency is inflation. Global inflation has been high in the past two years because of the severe over-issuance of currency in previous years. If we continue to issue money to residents by issuing currency, it is tantamount to poaching the flesh to mend the sores, tearing down the east wall to pay for the west wall, and failing to fundamentally solve the problem.

3; On the contrary, letting the rich pay more taxes can effectively reduce the burden on the government and solve the problem of distributing money to the poor without having to spend more money in their pockets. The government does not need to issue more money. Currency, naturally, will not increase the currency in circulation and will not trigger new inflation.

Some people believe that by raising taxes on the rich to solve the problem of giving money to the poor, it will not increase the burden on the government, and it can also better reflect the social wealth distribution. fair. However, for the rich, increasing taxes means increasing burdens and will lead to a reduction in their social wealth. Will this cause the rich to feel dissatisfied and have thoughts about immigration? It would be unrealistic to say there is no such thing. However, not many people have such thoughts. For a considerable number of wealthy people, whether to immigrate or not has little to do with their wealth. Because a moderate tax increase will not have much impact on their wealth. Immigration itself is also risky. Once you choose the wrong place to settle, you may suffer even greater losses.

4; Singapore’s measures of giving money to the poor and raising taxes on the rich are quite good and should be learned from. In the context of poor economic conditions, difficulties in operating enterprises, high employment pressure on residents, and slowing income growth, it is realistic and can be recognized by the rich to moderately increase taxes on the rich. The poor who receive money will enhance their trust in the government and develop a favorable impression of the rich, thereby weakening the contradiction between the rich and the poor. It can be said that it kills multiple birds with one stone.