7% GST
Today's the first day of the GST hike - from 5% to 7%. But taking a walk through Vivocity, it is hard to imagine that this tax increase actually has any impact on consumers. Zara, Mango and some other brands were on sale, and people were buying! The shopping mall was also as packed as any other weekend. Perhaps this is what economists call price inelastic demand, where demand doesn't change despite the changes in prices, but only going one way --> i.e. when prices go down, demand increases, but when prices increase, demand doesn't go down! Is this the sign of a buoyant economy? Or just an economy of people with money but nowhere to spend it. Guilty to say, I am also one of those PID consumers. Bought a mandarin yellow/orange dress/top and a black tunic dress/top at Zara. Heh. Didn't need to buy anything, but not in a good mood, so just need to spend money, do crazy things. Thinking back, the PID could also be because Singaporeans are so well-travelled, they have seen all sorts of tax rates - e.g. LA 10%, San Francisco 14% - so what is 7% compared to that? No doubt there's 2% in Vegas, but that's coz your money that goes into the casino partly funds your shopping. Anyway, feeling kinda tired now, so going to rest. That's all my blogging for the day.