Singapore: A Successful Alternative To The Unsustainable Western Welfare State

[Shen Li]

My future country, Singapore has built a safety net that doesn't reward laziness and doesn't force the next generation to pay the bills for social transfers today.



In most metrics, from economic freedom to lifespan to medical care to home ownership, Singapore is well ahead of the People's Republic of Canada and the United Socialist States of America. Not to mention Singaporeans don't have the consumer debt levels and taxes Canadians do.



This is an old article, but the facts of it remain true today.

Part of the reason for Singapore's remarkable climb up the international income ladder is bread and butter capitalism. The Fraser nstitute's Freedom of the World report lists Singapore as the second freest economy in the world -- right behind Hong Kong. As Frasier scholars have demonstrated year after year, economic growth and free markets go hand and hand.



But Singapore has done something even more remarkable than its economic accomplishments. It has built an alternative to the European style welfare state. Think of all the reasons why people turn to government in other developed countries: retirement income, housing, education, medical care etc. In Singapore people are required to save to take care of these needs themselves.



At times the forced saving rate has been as high as 50% of income. Today, employees under 50 years of age must set aside 20% of their wages and employers must contribute another 16%. These funds go into accounts where they grow through time until specific needs arise. For example, one of the uses for these savings is housing. About 90% of Singapore households are home owners – the highest rate of home ownership in the world.



For many years, the only two scholars in the Western world who paid much attention to Singapore were Washington University economist Michael Sherraden and me. Michael approached the Singapore experience from a left-of-center perspective and I came from the opposite direction. We both ended in the same place: this is an alternative to the welfare state that works.



Lately, quite a number of other scholars have discovered Singapore, especially its health care system – again, with both right and left finding a lot to admire. It's taken almost three decades, but Singapore is now the subject of a book by Brookings Institution, a whole slew of posts by Austin Frakt and Aaron Carroll, and a good overview by Tyler Cowen, with links to other studies and comments.



Sherraden recently summarized some of Singapore's major social policy innovations as follows:



Step by step, the Singapore state created a new social policy system that had asset building as its central structure.... In the world of social policy, it would be hard to overstate the exceptionality and the extent of this innovation.... During the past 25 years, Singapore policy has taken important steps toward lifelong asset building, beginning very early in life.  These innovations include EduSave, the Baby Bonus, Child Development Accounts, and related asset-building incentives.



For John Fund, Singapore's most significant accomplishment is the avoidance of the mistakes of other countries:



I believe that the least appreciated part of Lee Kwan Yew's legacy is his method of ensuring that one generation won't bankrupt future generations by selfishly living beyond its means. It's a welfare state that works, and one he always said was available to any political leader with the courage to tell his people the truth about the limits of government's power to pass out goodies.



For my part, I would summarize the philosophy of Singapore as follows:



Each generation should pay its own way.

Each family should pay its own way.

Each individual should pay his own way.

Only after passing through these three filters should anyone turn to the government for help.

If the United States had adopted a similar approach to public policy, there would be no deficit problem in this country.

https://www.forbes.com/sites/johngoodman/2015/03/31/singapore-a-fascinating-alternative-to-the-welfare-state/?sh=242c362b76c0">https://www.forbes.com/sites/johngoodma ... 2c362b76c0">https://www.forbes.com/sites/johngoodman/2015/03/31/singapore-a-fascinating-alternative-to-the-welfare-state/?sh=242c362b76c0

[weebles]

Well Goodluck with that.

[Herman]

I've flown out of Changi Singapore hundreds of times while working in South East Asia and the Indian Ocean. I never stayed in Singapore much more than a week at a time though. It is super modern, but I aint into apartment city living.

[Shen Li]

Well Goodluck with that.

Yeah, thanks for another video. It really adds to the discussion.:001_rolleyes:

[Frood]

Never move to a nation coming out of the throes of authoritarianism in mere decades unless they've had a revolution, war, and new start with clear human rights laws burned into the first few pages of their constitutions or manifestos.



It's just premature and potentially lineage ending.

[DKG]

Never move to a nation coming out of the throes of authoritarianism in mere decades unless they've had a revolution, war, and new start with clear human rights laws burned into the first few pages of their constitutions or manifestos.



It's just premature and potentially lineage ending.

That isn't the Asian transition model.

[Oliver Clotheshoffe]

We should cane young hoodlums like they do in Singapore. Maybe a raw ass will get them to wise up.

[Frood]

Never move to a nation coming out of the throes of authoritarianism in mere decades unless they've had a revolution, war, and new start with clear human rights laws burned into the first few pages of their constitutions or manifestos.



It's just premature and potentially lineage ending.

That isn't the Asian transition model.

The Asian model is the same for all transitions.... insidious creep along with personal inaction.

[Shen Li]

Never move to a nation coming out of the throes of authoritarianism in mere decades unless they've had a revolution, war, and new start with clear human rights laws burned into the first few pages of their constitutions or manifestos.



It's just premature and potentially lineage ending.

That isn't the Asian transition model.

Eggs ackly. This thread is about alternatives to failing Western ideas.

[Shen Li]

We should cane young hoodlums like they do in Singapore. Maybe a raw ass will get them to wise up.

Caning was introduced under British colonial rule. Today it's pretty much reserved for violent crimes.

[Frood]

That isn't the Asian transition model.

Eggs ackly. This thread is about alternatives to failing Western ideas.

There is no alternative for free will loving people but to persevere in Western society and revolt/refuse to allow inferior and dictatorial Asian ideas to spoil whats left of superior Western ideals.



...instead of cutting and running..

[DKG]

Eggs ackly. This thread is about alternatives to failing Western ideas.

There is no alternative for free will loving people but to persevere in Western society and revolt/refuse to allow inferior and dictatorial Asian ideas to spoil whats left of superior Western ideals.

I don't know where you get that idea. Countries like Taiwan and Korea use referenda and have a hands off approach to media. Things the West are moving away from. In that respect, the Tiger nations are becoming the home of Western liberty.

[Frood]

There is no alternative for free will loving people but to persevere in Western society and revolt/refuse to allow inferior and dictatorial Asian ideas to spoil whats left of superior Western ideals.

I don't know where you get that idea. Countries like Taiwan and Korea use referenda and have a hands off approach to media. Things the West are moving away from. In that respect, the Tiger nations are becoming the home of Western liberty.

Referenda as in mob rule.



That's not liberty.



Asian nations ultimately will never change until the first Asians finally revolt in a historical physical struggle for liberty.



I wouldn't hold one's breath on that one either.

[DKG]

I don't know where you get that idea. Countries like Taiwan and Korea use referenda and have a hands off approach to media. Things the West are moving away from. In that respect, the Tiger nations are becoming the home of Western liberty.

Referenda as in mob rule.



That's not liberty.



Asian nations ultimately will never change until the first Asians finally revolt in a historical physical struggle for liberty.



I wouldn't hold one's breath on that one either.

Referenda as in the Swiss way. You are ignorant of the Tiger nations. There is no point in continuing this with someone so ignorant.

[Shen Li]

Referenda as in mob rule.



That's not liberty.



Asian nations ultimately will never change until the first Asians finally revolt in a historical physical struggle for liberty.



I wouldn't hold one's breath on that one either.

Referenda as in the Swiss way. You are ignorant of the Tiger nations. There is no point in continuing this with someone so ignorant.

Freud is typical of what reamains on these forums. They can't speak a second language, but they know everything about foreign countries they've never stepped foot in.