Sleep on a plane is an elusive thing. So Porcorosso was stretched out in his seat, not sleeping, and decided to read this article on inequality (you will not be able to read it unless you have a subscription to the Economist – see, even on the Internet, we are divided into the haves and the have nots – subscriptions, that is).
Anyway, the thrust of this article was that in America, while the rich was not necessarily getting richer, the poor was getting poorer and the middle was getting more squeezed in the middle. It suggested that the key was not the average income but the median income and which side you fell on.
This is certainly true. When Porcorosso returned from London to make his sty in Singapore, he had to take a pay cut from his First World pay and benefits package to a Third World salary because he was not considered to be Foreign Talent. Still, it was clear to him that in income after tax terms, he moved from one side of the income median to the other. In other words, his standard of living got better.
Now, if you follow this through to its logical conclusion (and we have to go slowly as Porcorosso is a simple pig) then one’s standard of living can improve without getting more money if the median shifts down. Which seems to be what yesterday’s Straits Times was reporting. So congratulations – though you may not have known it, your standard of living may have just gotten better in the last year. Now this is not the same as cost of living or the quality of life but those are completely different subjects altogether.
Tax – now the same Economist article makes a valid point about the amount of taxable benefits (including income) as being a better measure of wealth. Medical benefits, company car, reimbursable expenses. This is because the Inland Revenue cares more about you than you care about yourself. There. So on that basis, two-thirds of Singaporeans do not pay any tax. What does that say about us? This simple pig is not sure.
To be continued …