IF WELFARE PAYS BETTER THAN WORK, WHY CHOOSE TO WORK?
The US spends almost a trillion dollars a year on poverty programmes and yet, poverty rate has remained unchanged.
[If just spending money was the solution, our poverty problem should be solved. But clearly it is not. We need a better answer and that answer upon a few moments of reflection should be obvious: Work.]
Social policies change behaviour and generous social welfare is a disincentive to work.
For Singapore, success has been built on the bedrock of work ethics. Social policies are also such that they help people without eroding work ethics.
To give an example, the Workfare Income Supplement (WIS) Scheme.
It rewards work and encourages up-skilling by supplementing the incomes and retirement savings of older Singaporean workers (35 years and older) earning up to $1,900 per month, and providing funding support for their training.
Eligible workers can receive:
– A cash supplement to meet short-term expenditure needs
– A CPF portion to build up retirement savings
– Subsidies when undergoing training to up-skill and improve employability