Saw in the news today that PM Lee said: "In a big economy, you can boost consumption. The government gives money, people spend it and it’s spent within the economy. Most of it stays in, a little bit of it leaks out. You get a multiplier and the economic activity goes up.
In Singapore if people spend money, most of the money goes overseas because we are so open and most of the demand is abroad. Most of the money we spend is spent on things which come from abroad so it’s not possible for us to pump- prime the economy in the same way that other governments do. But there are other things we can do (such as) reducing costs and helping citizens directly.”
Hmm… is the government tracking my Coach and Kate Spade purchases?