Oct 26, 2020

Cory Diary : Widening Wealth Gap - What can we do about it ?

The World we are in today is changing fast during Covid times to those who managed to get onboard and those who are left behind. By logics the result is more due to demand/supply economics at play rather than purposeful conspiracy cronyism broadly.

In the past I have wondered why would one want to study till degree just to work in service industry on specific segment where higher education seems not so practical unless we go up management level or specific role in communications where is not aplenty and may need.

Say for 2 different positions. One in Restaurant Service and the other in MNCs. Salary gap is like a gulf as in $2K to $6K respectively as an example. Imagine one has to work like 3 months to get equivalent salary to one in MNCs or Civil sector. Is it no wonder most of this work has to go to foreigner as the specific skill sets can be picked up by average person without needs of higher education abroad. The situation is even worst when we try to compute the saving rates between them as it is aren't directly proportional. Which implied if you are in low band salary, hardly any saving so don't even think of investing.

One would argue to push up the salary of this bottom which is kind of no brainer on surface but the cascading nature will pull everyone up too resulting null effect by inflation and make things worst destroying the little savings we have. And if it does  go through artificial means,  we will have brain drain ... . And the social on the whole will be downgraded in value with escalating cost. This hidden cost is real.
 
Covid basically accelerates the situation to be more pronounce. If we look at many other service sector like Insurance, Cab, Food delivery and even property agents. There will be a day many deals can be done online or autonomous vehicles. Where people can arrange house visits online in 3D view themselves without need to go through agents. The goods days could be gone. So don't be too hang up on why some of this jobs get paid relatively well for now or near future.

The World is moving towards Lao Ban, Entrepreneurs, Management or in practical term for many to be a shareholder if we want to do better. There will still be good jobs around just that it get smaller by the day as automation and efficiency kicks in. And the demand for specific skillset in-depth goes up. As in is a good thing to human kind as more people becomes more developed to do higher value added things and that's provided we educate and equip ourselves with the necessary skillset to learn continuously. 

Sadly most people is not cutout to be Lao Ban,  Entrepreneurs or Management. Shareholder is the easy path but risk is not less in stock market as there is a lot of room to go wrong. Sometimes I feel Time is running out for many in our generations and later, to catch on the bandwagon else you or your offspring's will be condemned for eternity spiral at the peasant levels. This sounds like a very negative notes. However is exactly such fear that keeps us on edge. Survival the fittest ? Situation is bleak for those who do have fallback plan and lives like YOLO and so to speak to their generation coming will ends badly in probability. The world is constantly moving ahead while they are left behind.

So is there really no hope for General Services, Hospitality and Airlines ? Maybe we need to make very bold decision to overcome. Example Northern Hemisphere winter is coming and Europe has entered huge second wave.  Singapore strength is our Hot Weather. Can we promote Covid-Escapee Travel with 6 months Visa with special rights ?

This could be a huge draw to foreigners. How can we manage the risk to general population. Charge one time entry special fee ? One thing is our Hotel and Malls could be filled to the brink if is successful. We may requires special travel only by SIA with proper partitioning and cleaning for each one-way trip. There will also be staycations initially. We may even allow this group to rent our condo and hdb to make it more feasible. Do we need to consider medical support that is slightly more expensive than residence with no subsidy but at more affordable rates. Many questions but time is running out.


Feeling Bold.

Cory
2020-1026

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