PAP government shortchanged CPF members more than 40 years ago

Many CPF members have mistakenly believed that the record high 6.5% CPF rate was a godsend.

But in order for CPF interest rate to be meaningful, it has to be beat inflation.  Seen in this context, 6.5% CPF rate was actually way too low when inflation reared its ugly head in the 1970s.

According to archived records, CPF members earned returns below the inflation rate in 4 years from 1971 to 1981.

In 1973, CPF members were paid 14% below the inflation rate.

 

It was worse in 1974 when CPF members earned returns which were 15.8% below the inflation rate.

Image below @ NAS

The PAP had already shortchanged CPF members more than 40 years and, unfortunately, continues to do so today

 

Phillip Ang

* The author blogs at LikeDatOsoCanMeh.

 

 

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10 Responses to “PAP government shortchanged CPF members more than 40 years ago”

  • patriot of Temesak:

    SHORTCHANGE is too kind a word…they Parasite on the CPF members and the people to Enrich themselves instead of SERVING them…

    What do you expect when you had an Evil Bastard who ENRICHED his whole Families and Cronies and call the people Dafts and need Spurs on their HIDES similar to WorkHorses in order to work harder for them!!!

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  • Round Tripping?:

    Where all the money goes? Maybe can check with Master Kong how round tripping actually works.

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  • Maxchewy:

    The least the PAP Govt can do now with such serious new allegations in their face by well-known blogger Philip Ang is to refute the allegations with reasons, with facts and figures. If they choose to keep quiet and pretend TRE and PA do not exist, then the shortchange allegations of millions of $$$$$$$ to citizens become true and valid.
    No need to relply here directly in TRE. They can reply in the ST or any other media. Should do so within a week or two.
    Don’t you think so, PM LHL?
    MC
    15.2.18

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  • Bapak:

    Malaysia EFP is giving 6.9% interests. They use the OWN fund to buy house no need to pay interests. We have been had by PAP.

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  • Undebunkable man:

    Phillip

    I can sense your ANGst.
    But back to reality, this CPF issues have been discussed for decades and pap votes continue to climb to record highs.

    You know there is no vote counting error right?

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  • HarderTruths:

    What is inflation? Where does it come from?

    Inflation is a result of two factors – fiat currency printing by the government and the velocity of the fiat currency in circulation.

    The more currency is printed or used the higher the inflation. This is good for debtors and governments that practice deficit spending (spending more than you get in taxes and investments). It is baaaaad for savers and wage earners where wages do not increase and consequently earnings are less and savings are reduced for the same reason.

    The other issue is that inflation is a wealth tax – it transfers your wealth to the government by them simply printing more currency.

    Inflation that is felt by the common citizen is based on rising costs for household items (CPI). This impact can be drastic or not – depending on wages and savings. Now there are sooo many ways to fleece $G locals – HDB, COE, ERP, parking, health – you name it there is a way to get more money out of you.

    In the $G context the government is the real paymaster for almost all employment – this means no real wealth can be created or increased – the country as a whole is earning less and less and paying the government more and more.

    This is resulting in the eventual destruction of the economy. There will be a point when the people cannot pay anymore or investments dry up.

    How is the government going to get its dues?

    When fiat currency printing becomes the only way the government can survive expect hyperinflation to set in.

    Think Greece, Cyprus and Venezuela. This has happened and $G is no different. Unfortunately 70% think the pappy gods can do anything.

    Perhaps the 70% will change their minds while rummaging through trash cans for their next meal.

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  • Opposition cannot win:

    Hello CyberNuts

    Happy New Year.
    It’s ANOTHER year and
    Opposition is still going no where.

    The fundamental bottleneck for opposition is still the same unchanged. Opposition cannot FOMVINCE nor awaken the peasants!

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  • LIONS:

    You want your CPF BACK,VOTE MORE OPPO.

    If you cant do that,kiss your CPF GOOD BYE for the PIG$ will suck you dry.

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  • oxygen:

    @ Undebunkable man

    YOU ARE PROBABLY MISTAKEN – Phillip Ang’s well-researched contribution is meant of informing and educational.

    Undebunkable man: Phillip

    I can sense your ANGst.
    But back to reality, this CPF issues have been discussed for decades and pap votes continue to climb to record highs.

    You know there is no vote counting error right?

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  • C'est la vie:

    *****
    This SGov shortchanging and/or fleecing its people, where “dollars and cents” are concerned ………… won’t be the first time and it most certainly, won’t be the last either !!!
    ***
    *****

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