As most Singaporeans spent some time bashing a family that was recently hung out to dry in the news asking for government assistance despite pulling a five-figure household income monthly, one economist has come out to set the record slightly straighter.

Public intellectual and economist Donald Low said in a Facebook post on Feb. 16 that the five-figure income family might look impressive, but actually, they might even be below average, according to Singapore's standard of living today:

The math

According to Low, the average household income in Singapore among working households is slightly more than S$11,500.

The average household income per capita is, therefore, about S$3,600.

In per capita terms, this family's income is below the average and closer to the median of around S$2,600.

His thesis

People sympathise with the squeezed middle class in the abstract.

But when confronted with a particular instance, such as the five-figure income family asking for help, they feel exactly opposite.

This is a reflection of a low trust society that believes anything more for one group, such as a group that appears to be doing well, means taking away from other groups.

For instance, most people will think that by helping such middle-class families, it will cause a higher tax on the wealthy and a transference of resources away from the poor.

The solution

But Low's main point is that life is rarely a zero-sum game.

Because to rely on the state to provide some services (e.g. kindergarten care) will bring about better economies of scale as there is a critical mass.

Overall, contributing to the public coffers via more taxes will still cost less privately, on an individual basis.

This is so as any losses via higher taxes will be offset by private savings from having spent less.

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The costs to society

A low trust society will resist paying higher taxes even when it is beneficial.

This is so as any transference to the lower rungs of society is believed to be undeserving.

As a result, society as a whole pays the price.

Of course, the issues are probably more fine-tuned than what has been laid out.

The state can provide essential services, but probably not essential but slightly more specialised services, for example, child care with a horse-riding component for overachievers.

Regardless, Low writes:

And when most citizens don’t support higher taxes, the state is unable to enact the programmes and provide the services that are necessary to reduce inequality.

This is why, ladies and gentlemen, Singaporeans sometimes cannot have nice things.

And also why the haves can always find their own way and the have-nots might just have to settle.

But the premise of a high trust society is that Singaporeans must reject stasis and aim to be constantly, upwardly socially mobile.