Economic inequality Essay

Application and evaluation questionCandidates be required to demonst straddle understanding of colloidal suspension by applying the data disposed to assess the change in train of so in Singapore. They argon likewise required to identify limitations of data given in assessing non- touchable sentiment of so and suggest realizable indicators to provide a more wide measurement of so in Singapore.Schematic Plan (to be through with(p) in 2-3 minutes)Thinking ProcessIntroduction (GIST)Define SOL, provide an oerview of the probeProvide the thesis Show how the data given support a acclivitous SOLAnalyse how economical growth sens empathise to rising SOLAnalyse how a low inflation rate is necessary for increasing SOLAnalyse how the creation of more jobs can drag to a rising SOLProvide the anti-thesis why the non- cloth SOL should be examined and analyse how tension level can make a motion non-material SOLAnalyse how in derive disparity can affect the SOL of Singaporean contempt evidence of economic growthAnalyse how negative externalities can affect the non-material SOLReiterate your stand and thinkGeneral Statement (Key idea) exposition (Definitions, clarify concepts / question)Scope (Set up directions for the answer)sTand (State the stand)Standard of living (SOL) is a measure of the welf ar of a populace. It is comp progressd of material panoramas such as quantity of goods and service consumed and non-material aspects such as amount of leisure time and retrieve to necessities of life.To determine whether the regulation of living in Singapore has been rising over the years, it is necessary to examine changes in both the material and non-material aspects. While the development given in the preamble seems to suggest an improvement in the material aspect, there is a lack of information to prove that there is a corresponding improvement in the non-material aspect. Nonetheless, given the positive data in the preamble and taking into account the regimes constant endeavor to improve the non-material aspect, such as pollution level, we can reasonably conclude that the standard of living in Singapore has been increasing to a macro consequence.Body ( dismantle)PEEL 1State the Point (P)As mentioned in the preamble, the Singapore economy grew by 9.2% in the third quarter, this is probable to lead to an improvement in the material well beingof Singaporean in general.excuse the insinuate with surface causal tie in (E)Elaborate the blame with examples (E)The 9.2% economic growth in the third quarter of 1993 designates that true Gross Domestic Product in third quarter of 1993 change magnitude by 9.2% over the previous year. Since GDP is the total value of the last(a) output produced within a country, this would meant that case output and hence national income increase by 9.2%. This increase means passel are enjoying more income which allows them to purchase more goods and services to satisfy their wants. For example , right away more people can contribute to buy luxury goods such as cars. connector back to gesture (L)This increases their welfare and hence the SOL increases.PEEL 2State the Point (P)As mentioned in the preamble, the inflation is low at the rate of 2.4% per annum, this is likely to translate to an increase in material standard of living.Explain the point with adopt causal links (E)Elaborate the point with examples (E)As discussed above, the economy grew at 9.2% and that would translate to towering income for the average consumer. A low inflation rate of 2.4% ensures that the increase in the income of the average consumer is higher than the increase in the prices of the goods and services he consumes. As such, for the average consumer, his real purchasing power increases and he is able to consume more goods and services as compared to before.Link back to head (L)This means that his welfare and SOL is improved.PEEL 3State the Point (P)As mentioned in the preamble, 19000 job s were created, this is likely to lead to an improvement in SOL for Singaporeans.Explain the point with clear causal links (E)Elaborate the point with examples (E)With the creation of these 19000 job opportunities, more previously unemployed workers would be able to find jobs and start to understand an income. These people who were previously unemployed would now be able to afford more goods and services, such as more meals or entertainment in clubs, with the income they now earn and hence enjoy a higher material standard of living.At the same time, as unemployment rate goes down, the labour food market becomes increasingly saturated and companies may be willing to pay a higher wage to attract workers. With a higher wage, workers are now able to consume more goods and services than before.Link back to fountainhead (L)As such, the welfare and SOL of the average Singaporean is likely to improve.PEEL 4State the Point (P)However, it is insufficient to only look at the material asp ect to determine if the SOL in Singapore has been rising over the years. It is also necessary to examine changes in the non-material SOL for a comprehensive analysis of the level of SOL in Singapore. One possible indicator would be the stress level of the average Singapore worker.Explain the point with clear causal links (E)Elaborate the point with examples (E)The high economic growth of 9.2% reported in the preamble could have come about as a result of lasting working hours. For instance, there is an increasing number of 24 hour coffeeshop in Singapore and actual employees are paid to work longer hours. As workers work longer hours to produce more goods and services, they pass a higher level of stress. At the same time, majority of the 19000 jobs created might be in the sales and retail sector where the stress to perform is extremely high. As such, the stress level of Singaporean may have gone up.Link back to Question (L) / paygradeIf the stress level of the average Singaporean worker has increased over the years, then the non-material SOL, and hence the overall SOL, of the average Singaporean may have worsened. However, to address that, the government has been encouraging companies to have a respectable work-life balance to promote families togetherness. Work days for almost(prenominal) companies have been curb to 5 days week. As such, it is likely that the increase in stress level is limited and the average Singaporean still enjoy a rising overall SOL.PEEL 5State the Point (P)another(prenominal) possible way to examine whether the average Singaporeans SOL has risen is to examine whether the gains from the economic growth is distributed equitably.Explain the point with clear causal links (E)Elaborate the point with examples (E)If the income disparity has widened, it would mean most people gained lessbenefits from the economic growth while the rich gained the most. This would mean the income of the majority has changed little and hence their welfare increase is limited or negligible. Hence on the whole, the SOL may be unchanged or has even decreased in an extreme case.Link back to Question (L) / EvaluationOn further analysis, this may be an tall(a) scenario for Singapore. The government has had attempt to close the income gap through financial benefits such as GST credits and fundings for Comcare, the Edusave merit bursary and the likes to ensure the poor s finances are enhanced. In fact, recently the income disparity in Singapore has eased check to the Gini coefficient which assigns a value of 1 to the most unequal income distribution and 0 to the most equal. Singapore currently hovers around 0.430. As such, it is likely that most Singaporean would be able to enjoy the fruits of the economic growth and experience an increase in SOL.PEEL 6State the Point (P)Finally, it is also important to examine the doctor of negative externalities in assessing the change in the non-material SOL of Singaporeans over this period.Explain th e point with clear causal links (E)Elaborate the point with examples (E)It is possible that more pollution and traffic congestion may have arrived due to the increase in national merchandise (hence output). These increase in negative externalities worsens the living environment and exacts a personify (in the form of healthcare cost) for example on the people. Hence the net benefits from the economic growth may be eroded.Link back to Question (L) / EvaluationHowever, the government of Singapore has had a track record of developing a clean and conducive living environment for all. It has strict laws on pollution and efficient policies on tracking traffic congestion like ERP and promoting prevalent transport. Hence a rise in social costs is unlikely to be significant compared to countries such as China and Thailand. As such, the impact of negative externalities is likely to be limited and the overall SOL of Singaporean is likely to have increased.ConclusionSummarise and Reiterate ( SR)All in all, it can be safely concluded that there is a rise in living standards in Singapore to a large extent in spite of a lack of data on the non-material aspect of SOL. This is because of the track record of the government which has worked to increase the SOL of Singapore since 1965 effectively and dramatically. However, it is still best to include other indicators such as the pounds per square inch (to see the level of pollution), the Gini coefficient and MEW. These will help to give a break down estimate of the change in the SOL. Ultimately, SOL is too broad a concept to be measured by any single indicator.