Economic Growth and Inequality in Singapore (Other (Not Listed) Sample)

Name: Professor: Subject: Date: Article Summary: Economic Growth and Inequality in Singapore: The Case for a Minimum Wage Singapore has had one of the most incredible growths in their economy over the past 50 years. After it gained their independence from the British, they had a $1,362 per capita income. However, by 2010 the nation had made significant growth and its per capita income stood at $41,109. The country has over the years had a very low rate of inflation 1.6% and it has been ranked third globally by the IMF in terms of purchasing power parity (Hui 107). This has nonetheless changed especially with the country facing four recessions from 1998 to 2009. The economic situation in Singapore has slowed down and this has been largely attributed to off shoring of lower cost economies. The advancements in technology have also made it hard for low skilled workers to obtain jobs and those that do are not earning enough to sustain them. This advancements have seen those with high level skills benefit and this has created the problem of inequality is as far as income is concerned (109). The problem of employment extends as older workers are increasingly finding it harder to find employment once they are laid off (108). These older workers are not economically active and so they are not able to make ends meet. There is also a slow growth in domestic employment but this has been compensated for by a high rate of foreign workers making their way into the country. The number of foreign workers increased from 619,000 in 1997 to 1.13 million in 2010. Many of these are low skilled workers and thus creating competition for employment with the locals. The influx of foreign workers has affected the wage level for local low-skilled workers and this creates a problem especially with the high cost of living (Hui 111). Economists and other stakeholders are constantly seeking to find ways of revising the state of the economy and reviving it even as the country struggles with lowered domestic population growth. However, should the country look to sustain the state of their economy especially with the rapidly ageing population, they will continue to rely on foreign workers/labor (Hui 113). The problem is not unique to Singapore; many of the countries in the gulf region as well as many cities in China are facing similar situations. Singapore is facing the challenge of finding sustainable solutions to enable its low-s...