Sunday, August 3, 2014

The new economy: Too fast, too furious?

Some gold plated economists warned that our efforts to restructure the economy is failing. The government begged to disagree. Who is right?

Some companies will leave and some will fail. I think the government will press ahead hard as long as the employment situation is good. Businesses who feel that they are perishing naturally complain the loudest. Many who are working on reforming themselves are not yet confident they have navigated themselves out of the woods. They are busy and keep quiet. We must not be too alarmed by the noise and the words of the prophets of doom. How can many numbers not get worse before they get better? Even when they upgrade HDB flats, you can't use your loo for a few days while they built you a new one!

Update: 9:45pm

If we do this right, business people at the end of the journey should be thinking in new ways quite different from what we are used to. I don't think this is going to happen. Transformation like these comes with a lot of pain than we are seeing. Of course economists don't think in such terms. Their reference points are often too narrow to be any good.

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