It's not the Cost of Living lah!

What's wrong with this picture?

Nothing to do with the black squiggly lines at the top of the 'Y'... Those were randomly etched onto the front page by 'Good Fren' when he was testing a couple of black pens.

What's wrong is Gen Y's answer to this survey:
That the 'Cost of Living' is of top most concern to them.

Mediacorp did a similar survey a few weeks ago too. This time, sampling 'Singaporeans', whatever that means these days. That sample also cited 'Cost of Living' as top concern.

It seems 'Cost of Living' is the 'right' answer.
But lemme show you why this is not the right answer.
It is merely the intuitive answer.

Try to understand this simple example:

Last year, food costs were at $5 and you made $10.
This year, food costs have gone up to $10 but you are now making $20.
You are not poorer due to rising food costs. Food still only takes up 50% of your income.

If food costs have been reduced from $5 to $3 this year, but you now only make $5, then you are indeed poorer. Cheaper food, but you are left with zero savings.
So, is food really 'cheaper'?

Do not be fooled. 'Cost of Living' is meaningless on its own.

The key concern should NOT be whether 'Costs of Living' are lower, but whether your 'Earning Power' has increased enough.

And 'Earning Power' is a function of (i) availability of jobs and (ii) income level.

If you can't find a job, it does not matter whether the Cost of Living is going up and or down, coz you are screwed anyway. You have zero income.

And even if you can find a job, but it pays you peanuts, say a construction worker's pay. You are screwed too, coz you will not be able to afford to buy a HDB flat and will be spending large chunks of your monthly pay on rent. You can't form a proper family unit, you can't send your kids to tuition, you can't feed yourselves decently, you have little or no savings.

So, you find a job that is 'better' than that of a construction worker's, but you realise you are still without significant savings after paying for your family's necessities such rent/installments, transport, food, clothing, education, insurance etc. You then realise that you still screwed, coz you cannot stop working, you cannot fall chronically ill, you cannot die etc. You are merely staying alive. You are not living. There is no dignity in your labour and life.

So, if anyone tries to ask you about your top concern again, please don't say it's about 'Cost of Living'. Remember to say loudly and firmly, "Earning Power".

要记得: 不是因为东西很贵. 而是因为你的收入水平很低.

If there is no such option in the survey, it's meaningless.
There is always the option to reject the survey.