Why Removing Subsidies Benefit the Rich

Subsidies on consumer goods benefit the rich people more than the poor by a large margin. This is because the rich people consume more. Worse, because subsidised items are so cheap that the rich spend unnecessarily on the subsidised items to the amount that they can afford, ignoring the waste that results from it.

By removing subsidies, the rich people will lose a lot of money. For example, if you spend rm10, 000 on petrol, removing subsidies will result in paying an extra rm10, 000. If you give rm10, 000 to the poor directly as cash, you will remove poverty immediately.

So, how can the rich ever benefit if they lose so much money? The rich can be considered as the top 20% earning more than rm10, 000 per month. Incurring additional expenses of rm10, 000 per year is less than Rm1, 000, leaving a lot of extra income to survive on. If the t20 people are heavily in debt, they can just save petrol by using smaller cars or taking public transportation, or sharing with others more.

Still, the loss is significant when you do not think there are benefits to it. But look at the destructive results of subsidies. Do you want to live in Venezuela, Zimbabwe and Sri Lanka? Or even Malaysia, compared to Singapore. Many still prefer to do business in Malaysia but enjoy their vacations in these developed nations, while blaming all the ills of the undeveloped nations on corruption and perceived mismanagement. All are true but they were all brought out of the subsidies which the t20 rich people enjoy while the poor suffers.

So, let us explain the reasons why there is so much ills such as insecurity, corruption, frequent power cuts, poor roads, poor water supply, inflation and devaluing of currencies. They are all caused by subsidies. If the rich, or t20 people just invest some of their income, all these ills can be removed, allowing them to make more money and income. Just look at the t20 counterparts in the developed nations. The rich in the developed nations are much richer than the rich in under developed nations, despite savings on subsidised consumer items. The rich in the developed nations have wisely invested in not getting any subsidy on consumer items, so that they can earn much more by being more productive in a more productive environment.

Hey, Malaysia and Sri Lanka only subsidise essential items, not luxury items. This is completely wrong. The amount of subsidy is highest for petrol which affects all prices of items including luxury items. In fact, this is the excuse for spending so much of the resources of a nation on petrol subsidies. To reduce the prices of all items, including electricity and water.

By removing subsidies and diverting the money to the poor, the workers are removed from poverty and pressures of living. They therefore work more productively. There are exceptions but look at the results in developed nations. Even Malaysian engineers are more productive picking apples in Australia but not at all productive in Malaysia despite graduating with engineering degrees, even overseas engineering degrees.

When electricity are charged at actual prices, there are more money to upgrade and repair electrical generators instead of relying on cheap but low quality generators, that are overworked, but under repaired because spare parts are expensive. Worse, because electricity is so cheap, people just waste electricity leading to more supply issues. Similarly for water and all subsidised items.

The people who gained the most from subsidies are the Foreigners as tourists or smuggled items that were never stopped, instead of the rich t20. Imagine, all the taxes that the t20 rich people earned, are used up by Foreigners. No wonder the rich t20 in Malaysia will never match the wealth of the rich t20 in developed nations such as Singapore.

Not to mention the lack of security in under developed nations like Malaysia where gangsters active and crimes are common, no doubt led by pressures of living in Malaysia. Statistics on crimes do not lie. The t20 rich people need to spend more on security or even go overseas to enjoy living in a safe environment. Not to mention what will happen if they are sick. Even the rich need to go overseas for t

better treatments.

For good Muslims, just search your soul and consider if the money that we gain from subsidies are halal or not, when knowingly, less of the subsidy money is spent on the poor.