Policies to increase income critical to tackle high household debt

[webfact]

 

Economic experts are not happy with the policies pursued by the outgoing administration to increase the income of Thai households, as well as the proposals of the parties who could form the next government.

 

“The income guarantee scheme for farmers implemented by the outgoing government did not work, while the debt moratorium policies proposed by many political parties in contention to form the new government make no sense,” said Somporn Isvilanonda, a senior fellow at the Knowledge Network Institute of Thailand.

 

The income guarantee scheme for farmers costs the exchequer over 100 billion baht a year.

 

“This subsidy without attached conditions is a waste of taxpayers’ money,” he said. “There should have been conditions set on increasing productivity and reskilling of farmers,” he said.

 

Full story: https://www.thaipbsworld.com/policies-to-increase-income-critical-to-tackle-high-household-debt/

 

-- © Copyright Thai PBS 2023-08-03

 

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[SoilSpoil]

Higher wages mrans less profit for big companies. Thailand thrives on exploitation, low wages and debt. Keep them in debt, keep them enslaved.

Edited August 3, 2023 by SoilSpoil

[Enzian]

For once I tend to agree with the "experts", in the first article cited (except for their suggested optimism). The second article is just about stupid politics.

Ending monopolies and price collusion, enacting higher lending requirements, teaching financial literacy in schools, looking for real ways to increase productivity the elite be damned, are all good ideas. And putting loan sharks in jail.

[kingstonkid]

More money is never the solution in any country.  All it means is people will buy more stuff and get further in debt.

 

Education on handling money and planning is what is needed first

[hotchilli]

5 hours ago, webfact said:

“This subsidy without attached conditions is a waste of taxpayers’ money,” he said. “There should have been conditions set on increasing productivity and reskilling of farmers,” he said.

Re-skilling a rice farmer?

[Cake Monster]

Higher incomes are never the answer to poor Money management

The one and only solution to the Household Debt issue , is for the Interest Rates to be increased, in tandem with much mire stringent credit checking and issuing of Loans by the Banks

[BangkokReady]

10 hours ago, webfact said:

The income guarantee scheme for farmers costs the exchequer over 100 billion baht a year.

 

“This subsidy without attached conditions is a waste of taxpayers’ money,” he said. “There should have been conditions set on increasing productivity and reskilling of farmers,” he said.

I'm not sure how they expect people to survive in Thailand without subsidies.  I believe it has been a case of getting money from tourists then giving some of that money to the people to placate them while those in power get rich.

 

Why do you think people are so chilled out and relaxed in Thailand?  Or why food prices have hardly changed in decades?

 

It's just a shame they don't value foreign people in proportion to how much their lifestyle relies on them.  I wonder if part of the anti-foreigner rhetoric we often hear from the government is linked directly to preventing this.

[kimamey]

Having more stringent requirements for loans is OK, but not if a refusal by a bank just leads to more borrowing from loan sharks.  They need to be dealt with as well. 

[SoilSpoil]

3 hours ago, Cake Monster said:

Higher incomes are never the answer to poor Money management

The one and only solution to the Household Debt issue , is for the Interest Rates to be increased, in tandem with much mire stringent credit checking and issuing of Loans by the Banks

Debt problems are comparable to substance abuse. Increasing the price of tabacco, alcohol or drugs has no effect on drug addicts. It only creates more problems, and make preditory lenders very happy. The keys are education and regulation, both for banks as households.

[Xonax]

21 hours ago, SoilSpoil said:

Higher wages mrans less profit for big companies. Thailand thrives on exploitation, low wages and debt. Keep them in debt, keep them enslaved.

Higher wages means higher production costs and inflation, which will quickly eat the wage increase and more for workers with the lowest income. 

[Xonax]

10 hours ago, SoilSpoil said:

Debt problems are comparable to substance abuse. Increasing the price of tabacco, alcohol or drugs has no effect on drug addicts. It only creates more problems, and make preditory lenders very happy. The keys are education and regulation, both for banks as households.

Increasing prices may not have an effect on drug addicts, but will certainly prevent many people from becoming drug addicts.

[Joseph98765]

On 8/3/2023 at 8:05 AM, webfact said:

The income guarantee scheme for farmers costs the exchequer over 100 billion baht a year.

Yeah, I'm so happy knowing that my taxes are wasted like that....

[Joseph98765]

14 hours ago, BangkokReady said:

It's just a shame they don't value foreign people in proportion

They will do only when they are going somewhere else (vietnam, Lao,...) is the only way they learn. But after this covid situation, looks like they didn't learn ANYTHING!