My blood really boiled yesterday. I have to say that I used to think that Workers' Party was a group of maybe not very competent but at least fairly decent people, infected perhaps by a few too many left-wing ideas (hey, nobody is perfect, right?).
But I am increasingly often forced to correct my observations - specifically each time Jamus Lim opens his mouth about something.
Jamus rocked the GE2020, appearing to be an affable, well-spoken, pleasant guy in his 40s, who seemed to know what he's talking about and came back to Singapore trying to engage in politics in good faith, even if in opposition to the government (after all differences of opinion exist everywhere and it's only natural to debate different ideas).
But Jamus is not a man of different ideas - Jamus Lim keeps proving to be a man of manipulation and deceit. And his latest commentary on GST hike is quite possibly his worst attempt yet.
Jamus called the GST hike irresponsible and cited example of Japan, claiming that inflation "doubled" in the country each time it raised its own consumption tax. He then proceeded to say: "Imagine a doubling of inflation from our current, already unbearable levels".
In other words, he's trying to claim the GST hike could double the rate of inflation, based on Japanese experiences...
Wow.
What he forgot to mention is that:
1. Japan has for over 20 years had a problem with deflation (drop in prices, which can be even worse) and when it recorded inflation it was very, very low.
2. When subsequent governments raised the tax rate to 5%, 8% and, recently, 10%, annual inflation in Japan was within 1-2%. It's understandable that a tax hike of 2-3 percentage points had a "doubling" effect given the very low inflation rate in the first place.
When your rate of inflation is at 1.5% and after the tax hike it goes up to 3% it doesn't mean that a tax increase of 1-2% that is being enacted in Singapore is going to double the inflation from 5% to 10%.
This is fearmongering manipulation of an absolutely egregious degree.
3. In fact, inflation figures from Japan show that inflation increased by LESS than the rate of the new tax. In 2014 when it was bumped from 5 to 8% - by THREE percentage points - inflation in subsequent year increased only by TWO percentage points (see image).
4. Unlike in Singapore, Japanese government did not have massive relief programs which alleviated the hike for majority of the population for the subsequent few years.
5. Japan has a reduced rate for some goods and food - but that rate is still 8% vs. nominal 10%. So, there is no other form of tax relief of comparable magnitude to the one enacted in Singapore, where the lowest earners will effectively pay a rate of around 3%, when accounted for government transfers.
In other words: NO, inflation in Singapore CANNOT double because GST is going to be increased by ONE percentage point next year and another one after that. Contribution of the tax to inflation can be at most that one percent - and most people won't even feel that, after additional relief measures are included.
Jamus Lim is quite cynically trying to stoke greater fears in the population by deliberately misleading the public about the figures he knows perfectly well they know very little of.
This is, to be honest, a scandal.
Not only because he's an elected MP who swore to "faithfully and honourably" perform his duties and serve the nation but, let's not forget, he's also an active educator in the field of economics.
Is that what he's teaching his students? How to pluck a figure out of context and then manipulate its interpretation while presenting it to people who don't really know what you're talking about, only so you can score some political points by hoping to trigger widespread fear about government policy?
Some teacher indeed...
EDIT:
PS. I understand there are disagreements between different political parties but they should be within the realm of policy. Like wealth tax, for example. I think it's a terrible, reckless idea - but it's a legitimate policy proposal that can be debated.
But this? This is a boldfaced lie, deliberately told by a person who wants to take advantage of the public.
Share this, spread the word, make people aware. This is an opportunity to do what he doesn't want to - educate the people.
