The myth is busted! Subsidies, hand-outs, cash rebates for fuel, cash incentives for farmers and fishermen do not help the economy in the long term. We're heading for the big bust.
Most of those receiving these cash monies aren't paying income taxes that fuel the nation's growth. In KL city, many live in DBKL low cost flats subsidized by rate payers and still many will spend the money on the luxuries of Astro TV subscription and higher end cars. It's so frustrating to see tax payers money being spent on those who should not receive the subsidies. Drive by the flats in Sri Sabah Cheras, Desa Tun Razak, Bandar Tun Razak, to name a few. It's amazing to see there are more Astro dishes and expensive cars than there in the more upmarket apartments.
The big bust - Malaysia's inflation rate jumped to a 26-year high of 8.5 percent in August, driven by the escalating cost of food and fuel, according to official data released Wednesday. Thanks to more subsidies and cash hand-outs. And municipal council members can now have illicit sex with women from China.
The result was slightly higher than expected but the central Bank Negara would not raise interest rates to ensure growth.
With that kind of inflation, will the government increase the key interest rates? Or will it be maintained at 3.50 percent till the year-end to support growth?
The Department of Statistics revised downwards the inflation figure for July to 8.3 percent.
It said the cost of food and non-alcoholic drinks rose 11.7 percent in August compared to a year ago. The high inflation is already hurting consumers with many Malaysians cutting down on their food bill.
The August data showed escalating prices in most categories, including transport which jumped 21.8 percent, and restaurants and hotels which rose 6.5 percent.
Wholesome bust (pic) isn't such a bad thing even in times of inflated prices. We continue to delight in diligently pay taxes while others enjoy subsidies, Astro trivia and trash.
Source: Agence France-Presse - 9/24/2008 9:15 AM GMT
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