Prime Minister Office Helping unemployed people in a recession
Someone asked me - will there be a recession and how will it affect the people who lost their jobs?

I gave him this view.

We are already in a severe business slowdown. To the people who lost their jobs or suffer losses in their business, they are already feeling the effect of a recession.

It will affect more people over the next year or two. The economic situation will get worse.

However, the impact on the people who lose their jobs will not be severe, if there is a right govt in place who can deal with the real problems faced by these people. 

Here are the steps that a "right govt" can implement:

a) Allow the unemployed workers to withdraw their CPF savings to meet their living expenses. The savings is needed now and not many years down the road.

b) Allow them to take a loan from the govt to meet their living expenses and be charged as a mortgage on their home. This loan will carry an interest rate of 2.5% p.a. and will have to be repaid when they get a job or sell their property. If they do not have a property to mortgage, they can still get an unsecured loan from the govt.

c) The govt can create temporary jobs, say six months at a time, for the unemployed people to do useful things, such as cleaning the roads, be local guides, traffic wardens and take care of the elderly and children. These are simple jobs that can be done with a short period of training.

The worst impact of unemployment is the need to find money to meet the living expenses of the family and the need to sell of assets, including a home, at depressed prices. (This is how the rich became super rich by taking over asset at rock bottom prices in a capitalist economy).

If there are adequate sources of finances to tide over, there is no need for families to be distressed, to be homeless, and to commit suicide.

But we need a "right govt" with the right policies.

PM Lee - are you listening?

Tan Kin Lian

Vote - do you agree with my suggestion?




 

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