Monday, February 27, 2012

Singaporeans are naive

Some Singaporeans are very naive. When the Government wants to buy buses for the bus operators and help them in other ways, these people are worried that the operators would make more profits.

First, the operators will only make more profits if they increase the fares or if suddenly a lot of people decide to take buses. These are unlikely. Second, what is wrong if the operators do make more profits because of Government help. It is good for everyone. If profits remain stagnant, it is bad for everyone.


The fact is the operators do not make enough money to buy the extra buses or pay the drivers more. The bus fares are too low. So the Government steps in.


These people should worry about what happens after five years. If the Government stops its subsidies for the operators, where do they get the money for the maintenance of the extra buses and the wages for the extra drivers.


My view is that the Government will continue helping the operators after the five years, whether with drivers' wages or other costs for the operators.


With or without Government subsidies, fares still have to go up.