Let market forces steer economy

View of the CBD skyscrapers from the Marina Bay Sands promenade, as two tourists walk by.
View of the CBD skyscrapers from the Marina Bay Sands promenade, as two tourists walk by.PHOTO: ST FILE

Singapore's prosperity has led to issues of inequality (4G team to create opportunities at every stage of life for all: Indranee, July 19).

Efforts to be an inclusive society, such as giving subsidies to the older generation and low-income families, do not allocate resources efficiently, given Singapore's limited talent pool, due to the low birth rate and an ageing population.

In addition, subsidies can distort economic data.

Also, subsidies for low-income families are funded by the working population, who may not benefit from these subsidies.

For the economy to continue to prosper, the Government should just leave it to market forces.

The market will come to an equilibrium naturally and resources can be allocated more efficiently.

Fang Yang Qi

Year 1 undergraduate

A version of this article appeared in the print edition of The Straits Times on July 22, 2019, with the headline 'Let market forces steer economy'. Print Edition | Subscribe