Netizen asked: why borrow to fund education when there is no need to borrow?

borrow, fund, wp, jamus, lim, workers, party, education

Gone are the days when we can just have some fun poking at proposals that would bring us to ruination.

Today, we are looking at the possibility of a new government taking over and turning their proposals to reality. It’s a scary scenario because the opposition has no competency to govern the country even as they make beautiful promises

You can see a concerted effort at work to win support and votes for populist suggestions.

Instead of taxes, WP through Jamus Lim and Louis Chua proposed to fund education through borrowing.
 
This is the WP’s way of giving you Nordic-type of benefits without the Nordic-type of taxes. Now, you can have free education, even free healthcare without having to pay taxes for them.
 

But really, ULTIMATELY, WHO PAYS?

 
You of course. And not just you, but your children as well.
 
Let me explain.  
 
Currently, the annual budget for Education is $13 billion.
 
By borrowing this sum instead of collecting taxes from you, a government can keep you so happy. 
 
You will be so happy because no one likes to pay taxes. And why not if you can have free education without paying high taxes like the Nordic countries?
 
But this happiness will be short-lived. 
 
You see, the present is real but the future is also real. And the future will one day become the present. 
 
The unfortunate thing about people is that they tend to live in the present and do not own their future. The future is always so distant, so far away, it’s hard to imagine it in the pressent. 
 
This is why populism will win votes. Because people do not see the future consequences of present actions. 
 
Hey, nothing is free.
 
Borrowing does not give you free money to spend.
 
When you borrow for a recurrent expenditure like education, it is an ever growing debt that has to be repaid. You have to borrow every year for eternity. 
 
So, you borrow $13 billion in one year. The next year, while you are still servicing the loan, you borrow another $13 billion.
 
You now have a bigger loan to repay.
 
Repeat this year after year. You have a growing debt that snowballs into a monster where you are just paying off interest. 
 
Now, the elected (WP) government will collect taxes from you not to spend on you but to pay interests for loans taken year after year. 
 
When interest rate goes up, you are done for.
 
Is that what you want? Really?
 

A cautionary tale from Sri Lanka

 
Sri Lanka is a cautionary tale for us. The suggestion by WP to borrow for recurrent expenditure will lead us to where Sir Lanka is today.
 
Sri Lanka is bankrupt today because it kept borrowing to fund recurrent expenditure.
 
Singaporeans have been a very disciplined people supporting policies including tough ones because we understand the rationale behind them and we care for our children and their future too.
 
We have the ability and the intelligence to analyse deeper the alternative proposals of opposition parties. Many of us love Singapore and want Singapore to thrive, to be a place we are proud to be, a home truly, where people are not selfish, and everyone does their part to keep Singapore a shining red dot.
 
Will we continue to have the discipline and grit to make hard choices and sacrifices so that we can continue to remain a special place in a dreary world?
 
I believe that Singaporeans will. 
[irp posts="13682"]

Share:

Facebook
Telegram
WhatsApp
Twitter
LinkedIn
On Key

Related Posts