I have talked a lot about my working class roots and it is one topic I feel the right to talk about given how I did grow up in a working class family. I think people who are not working class may stay away from this topic for the same reason because it is potentially controversial and offensive to working class people and I think this is one aspect of the working class mindset that I would like to talk about in this post. Firstly, allow me to start with a childhood memory to help you understand what this mindset is. I was about 14 years old when this happened - the history teacher Mr Tan told us to read up on chapter 17 over the weekend and I simply forgot to do it as I was a terrible student! So on Monday morning, Mr Tan said, "I'm going to find out if you have done the reading I told you to. Everyone, clear your desk right now, I don't want to see any of your books on the desk." It was at that point that I thought, oh no, I have not done the reading, I'm in so much trouble now. The teacher then walked around the room asking random students questions from chapter 17 and if the student couldn't give the right answer, the teacher would give the student detention. I carefully observed the pattern of behaviour in the room - when Mr Tan asked a fairly easy question, some of the students would put their hands up automatically, as if to say, "please let me answer that easy question, I know the answer. Then you wouldn't come back to ask me a more difficult question later." Thus Mr Tan would deliberately ignore the students who had put up their hands and deliberately pick someone who didn't put up their hand to answer that question. If I may clarify, often these students knew the answers anyway as they did do their homework - they were simply the more quiet and introverted students who didn't say that much in class. Thankfully, Mr Tan did use the opportunity to talk a lot during this process, so if the question was, "what year did the Americans drop the two atom bombs in Japan to end WW2?" He would then go on to discuss the details on the bombings before going onto the next question. All this while, I was very nervously watching the clock on the wall - counting down the minutes until the end of that lesson. What did I have to do to avoid being asked a question?
I went for a high risk strategy, I put my hand up enthusiastically every time Mr Tan asked a question as if I knew the answer and pretended to be disappointed when he asked someone else to answer the question. If a classmate got the answer wrong, I would shake my head with disapproval in a judgmental way. I then calculated how long Mr Tan spent on each question and how many students there were in the class and concluded that he simply didn't have enough time left to question every student in the class, so if I played my cards right, I could get away with it despite not having done the homework. It was a game of 'call my bluff' with Mr Tan and it worked, Mr Tan even had to tell me to calm down and keep quiet when I begged him to let me answer his questions. At the end of the lesson, it was one of the most tense countdown I had experienced as I watched Mr Tan finally ran out of time before he got to asked me a question - I managed to dodge the bullet by convincing Mr Tan that I had done the reading. Should I have done my homework like a good student? Yes of course but did I experience a certain sense of glee having fooled Mr Tan and triumphed in this game of 'call my bluff'? I did think at that point, I could have spent my weekend reading chapter 17 but instead I went to gymnastics training and then hung out at the mall afterwards; in my mind, it was like winning a gamble. Allow me to state for the record, I do not condone that kind of behaviour at all, if you are a student, you should always do all the homework that your teacher gives you. Please allow me to give you another story with a similar theme - so this happened during my army days and at my unit, they would do an inspection of all the records every year and I was told that the inspecting officer would visit the unit and request the records of three random months in the last calendar year, the officer wouldn't have time to go through all 12 months of records but wouldn't tell you in advance which months' records would be selected so you would have to make sure that your entire archive of records were in perfect order. This was certainly not the case in my unit as the guy I had taken over from had just finished his military service, hence he knew he would have left the unit before that next inspection would happen and I was the very unlucky soldier who had taken over from him. Would the inspector accept that excuse? Not at all - regardless, I would still be punished, if the unit failed the inspection.
When I was informed of the inspection with a week's notice, I knew I could tidy up the records to a decent standard in about two weeks but I simply didn't have enough time to do 12 months' worth of records in a week. Simply tidying up each month's records a little simply wouldn't allow me to pass that inspection anyway so I came up with a high risk strategy. I would only do the even months (February, April, June, August, October and December) and not even bother with the odd months in the time that I had. Thus on the day of the inspection, I was rolling the dice and hoping that the inspector would only pick even months. I greeted him politely and confidently, as if to say, "take a look, everything is perfect here and I have nothing to hide." The inspector then requested the records of April, July and October, I fought hard to stifle a sense of panic but I had to improvise. I brought him the records for April, June and October; then before he noticed, I was the one who realized my mistake and said, "oh I am terribly sorry sir, did you say June or July? You said July didn't you? I somehow got confused and brought you the records for June." However, because I had been so police and cooperative, the inspector said, "that is fine, I only need to look at the record for three months - I'll look at June instead, it doesn't matter." So once again, I used my social skills to get myself out of a sticky situation. At this point you're probably wondering, okay Alex very interesting stories from your past but what do those two examples have to do with being working class? Well my father is 85 years old and he lived most of his life in Singapore after having spent the first 12 years of his life in Malaysia (it was all British Malaya back when he was a child). Whilst I pride myself in being a polyglot who is fluent in 7 languages whilst being able to get by in 25 languages, my father has adamantly refused to learn English all this time despite the fact that he lives in a country where English is the main language of education and business. The reason why my father refuses to learn English is because he was sent to a Chinese medium school - his entire education was conducted in Mandarin, so all subjects like maths, science, history and geography were taught in Chinese whilst English was only taught as a second/foreign language and he was really only taught the basics. Those who chose that path were assuming that English would not be important in the future, or that they would get away with it.
My father had finished his former education by the late 1950s and for a while, things were okay for him until the late-1970s, when the government decided to phase out all forms of Chinese medium education and make all students study only in English - Chinese would be relegated to a second language for the vast majority of students and it was clear that those older Chinese Singaporeans like my father who couldn't speak much English (or any English at all) were going to be at a major disadvantage. What did this cohort of older Chinese Singaporeans do then? Well, they were split into two camps - the first camp simply accept the way the situation had unfolded and started learning English. I remember I had a math teacher in secondary school who spoke English with a strong Chinese accent, he was one of those older Chinese Singaporeans who didn't learn much English at school as he went to a Chinese medium school but worked hard to make up for it later on as an adult when he realized that the only way he was able to continue teaching maths was if he could deliver those lessons in English rather than Mandarin. Then there were those like my father who stuck to their guns: my father refused to speak English and made zero effort to improve his English. There was this incident in Singapore when we were in a restaurant and the word 'fish' was on the menu - my father asked me what it meant and I rolled my eyes. I knew my father couldn't speak English but I thought he was able to recognize simple words like 'fish', but no, he asked me what he meant almost in an act of "I adamantly refuse to even look at that word on the menu and even if I do understand it, I shall pretend I don't." When I was very young, I did naively ask him why he doesn't want to try to learn English: he went into a long rant about how it wasn't his fault that he was sent to Chinese medium school as that's what his older brother did, it was entirely his parents' decision in any case so if it was a wrong or bad decision, I should blame his parents and not him. He went on to complain that a Chinese medium education is superior to an English medium education and that the Singaporean government had made a terrible mistake. In short, his refusal to learn English was his small gesture of protest, a solo act of defiance, against the decision taken by his government way back in the 1970s.
My father had plenty of time and opportunity to learn English but he had turned it into a game of "call my bluff". He worked as a primary school teacher where he taught Chinese - thus at least he had picked a career where he could avoid using any English. However, all teachers were required to run some extra curricular activities like a sports club and my father taught basketball for many years. Because he spent his childhood in Malaysia, he had a decent grasp of Malay and was able to converse with all the Malay students in Malay (thus avoiding English) but when it came to the Indian kids or anyone else who could not speak either Mandarin or Malay , he would go as far as to make one of the Chinese kids translate for him just to avoid speaking any English. He only befriended the other colleagues who could speak to him in Mandarin or Malay, ignoring the ones who spoke English. He used his wife and children to do various tasks for him (such as the utility bills) which involved using English. If he had made the effort to learn English, it would have been hugely beneficial for him - it would widen his social circles, he could access a lot more media and entertainment in English, it would make traveling abroad so much easier for him and most of all, he could have connected a lot better with his three children who grew up with English as a first language. I have two sisters and my eldest sister actually really sucks at Chinese as she never used it since she took her last Chinese exam at the age of 18 - in her office, she has Malay and Indian colleagues, thus everything has to default to English all the time and no one would ever use any Chinese at work. At least my other sister has a much better grasp of Chinese and I pretend that I no longer speak Mandarin confidently, just to annoy my father. Remember the two stories I told you earlier about how I played that same game of 'call my bluff' when I didn't do my history homework and when I faced that inspection in the army? Well, my father is doing the same thing - it is called, "let's see if I can live yet another year in Singapore without using English." Hence his 'reward' if he 'wins' is the time and effort he would have saved by not learning English and that is a game he is very determined to win.
If that is his logic, then I must question what his 'reward' actually is and that boils down to this - what has my father done with all this free time though? Actually, not much at all. This value of this reward is only worth what he has done with that time and effort he has saved, but the truth is he has mostly spent it all on the living room sofa, watching trashy programmes on TV until he falls asleep. He simply wasn't motivated enough to try to do anything more and squandered all that free time he had 'won' by not learning English. If he had done something incredible with all that spare time, if he had achieved something that had made that victory meaningful and significant, then it would have made sense but my point is, he didn't. It is time for an analogy: I once went to a charity event where there was a raffle, so it is a method to raise money for a cause by selling numbered tickets for a small amount of money. The prizes are usually donated so all money raised can go directly to the cause: at this event, the top prize was a very expensive bottle of champagne. The elderly lady who won the prize was so excited and as she claimed that bottle of champagne, she exclaimed, "thank you, I've never won anything before, wow this is incredible!" Her husband then asked if she would like to pose for a photo with her bottle of champagne and it was at this moment that the bottle somehow slipped from her hands when she was trying to pass her phone to her husband and it smashed onto the floor before her husband had even taken the photo. Everyone just stood there in shock for a moment as we realized what had happened - that bottle of champagne was worth about £3,000 and all that was left of it now was a pile of broken glass in a big puddle of the finest champagne. That's a good example of someone winning a prize but squandered it due to their folly - so even though they did win a victory of sorts, they didn't benefit from the prize at all. A victory is meaningless if you squander the prize, a victory is only meaningful if you could benefit from the reward or prize - in the case of the lady who smashed that bottle of champagne by dropping it on the floor, what she should have done was at either sell that champagne for a lot of money or at least have enjoyed the experience of drinking something that expensive. If she had done either of those things, then yes she would have enjoyed that sweet victory, but unfortunately she just dropped that bottle on the floor and smashed it instead.
But to be fair to my father, is there any reason why he should have avoided learning English then? Well a possible rationale is that he believes that he absolutely no chance of improving his English as he just doesn't have the ability to learn a new language - so by that token, any time and effort spent on learning English would simply be a dead loss. If that incredibly pessimistic outlook was accurate, then it would make sense just to cut your losses and not even attempt to learn English. This is not a totally irrational line of reasoning: let's go back to the raffle where the elderly lady dropped the bottle of champagne on the floor and smashed it to bits. I confess I chose not to buy a ticket at that event as I had taken a look at the size of the audience in the hall and then I did a quick survey of the prizes. Being teetotal, the grand prize of a very expensive bottle of champagne didn't really appeal to me at all - even if I had won it, I would have tried to sell to get some money and I have of no idea how one would go about selling something like that or what kind of price it would fetch in the open market. I concluded that I wasn't really that keen on any of the prizes and I stood little chance of winning anything given the ratio of the number of people in the room to the prizes. Therefore after that quick cost-benefit analysis, I declined to buy a raffle ticket then and I think it was a rational decision. It is perfectly reasonable to choose not to invest your time or money in a venture if you think the chances of success is too low to justify even trying. But allow me to share my perspective on the topic of learning languages: would my father ever become fluent in English? No, he wouldn't. But would he be able to learn it to a decent standard in order to reap the benefits of being able to use English in everyday life? Yes, if he was willing to put in the effort. I speak many languages but am fluent in seven of them - let's look at Spanish which is my fourth language. My Spanish is entirely self-taught, I never took a lesson in my life before and have never had a Spanish teacher before, yet I have put in an immense amount of effort to become fluent in Spanish. Will I ever sound like a proper native speaker? No, in fact one Spanish friend recently commented I have a very unusual accent in Spanish in that I have some elements of South American Spanish mixed in with Madrid standard Spanish. Do I make mistakes in Spanish? Yes, all the time but does that stop me from communicating effectively in Spanish? No, I am still able to use my Spanish in my work efficiently - in spite of the fact that I am neither a native speaker nor totally fluent.
A lot of older Singaporeans speak imperfect English - they will have a strong Asian accent and often use non-standard grammar associated with Singlish. We need to ask two questions about this issue: firstly, do they speak English well? No, of course not, they would struggle to be understood in London, New York or Sydney. But was it a total waste of time for them to have made the effort to have learnt some English then? Of course not, their lives have been greatly enriched by their ability to speak English. Thus for many of these older Singaporeans, that is always a good reason to make some effort to learn English regardless of how good their English can be. There is another reason why my father has refused to learn English: he is terrified of being embarrassed when he makes a mistake when he speaks English - this is because he worked in a primary school as a teacher and most of the students there spoke better English than him so he felt he would lose face if he made a mistake in front of the students when trying to speak English. The irony was, if he refused to speak English, he would lose face anyway if the students assumed he was too uneducated to even put together a simple sentence in basic English. He was simply trading one form of judgment for another, neither of which resulted in a good outcome. Let me give you another analogy of how working class people use excuses to avoid doing something that would bring them net benefit even if they don't do it particularly well - my mother hated to do any form of exercise even though the doctor often told her that she needed to lose more weight. So her excuses were mostly associated with lacking self confidence, for example, the doctor suggested that swimming or if she found that too hard, simply walking around the shallow end of the pool in waist deep water was a great way to exercise. My mother refused to do that for two reasons: she didn't want anyone to see her in a swim suit and she was afraid people would laugh at her if they saw her trying to exercise. We suggested that she could get a swimming instructor to help her with the swimming and she retorted, what would be the point of that? I am never going to be a swimming champion, so why should I even try to learn to swim? Would she ever be any good at swimming? No, never but would doing the exercise be good for her health? Yes very much so, yet my mother shoved that into her huge blind spot and adamantly refused to do any kind of exercise.
It is their unwillingness to try anything that frustrates me - when we try something and we don't know if we will succeed, we are taking a risk. Allow me to give you an example from something I did today, I am a big fan of the Ukrainian band Go_A and they made an appeal on Instagram. They asked for people who have been studying Ukrainian to respond and take part in a special documentary. Have I studied Ukrainian? Yes I have but it was mostly two years ago when I went to work in Kiev, I have not really kept it up. I still can understand a bit of course but it's not as good as my Spanish or Welsh. I have to admit, there was a moment of self-doubt: if I recorded a short video of myself speaking Ukrainian, would I even be understood? Would I mispronounced the words so badly or have a terrible accent to the point no one would have any clue what the hell I was trying to say? Would people watch my video and mock me for speaking the language so badly? But another part of me thought: meh what's the worst that can happen? After all, I said in the video, I speak a little Ukrainian and I'm learning. I never claimed for a moment that I was fluent in the language so I went ahead and recorded that video anyway. My parents would never dare to do something like that because of this fear of losing face, of people thinking that they are stupid and making fun of them. The reward for me in this project was simply proving to myself that I could script, rehearse and perform a short speech in Ukrainian within two hours flat and convince others that I can speak some Ukrainian. If I succeed, then I gain a lot of self-confidence in my ability to complete such a complex task under pressure. But if I fail, I can live with that. What bothers me is that my parents are often so afraid of failing they never even try, that's why they default to the position of "if I don't even bother trying, think of how much I would be saving by passing up on this challenge." But if that is their default position and they never ever try any new challenges, then how the heck would they ever improve themselves? The question I have is this: are my parents like this because of their working class mentality? Oh and Katya the lead singer from Go_A did say to me briefly at the concert, "Alex, thank you for your video."
Before you accuse me of discriminating against working class people, allow me to explain my theory -when you are very poor, you are often forced to make rather poor decisions that richer people would never make - allow me to explain. Imagine if you had $20 left until your next pay day and you had to make that money last until the end of the week, you stumble upon gambling game where you very good chance of winning a thousand dollars. The game works like this: you pay $20 to toss a coin, you just have to guess which side of the coin it would land on: heads or tails. Get it right, you win a thousand dollars right there and then. Get it wrong, you lose your $20. Faced with those odds, the poor person would not gamble - they will simply spend that last $20 on food and essentials no matter how good the odds may be. They simply can't afford to lose, so they won't take that risk. A richer person however, would look at those odds and think, I'd take a chance and if I lose $20, it's no big deal as I have plenty more money in the bank. When my mother was young, she lived in abject poverty so this really affected her attitude towards spending money - hence when my aunt got into university back in the late 1960s, she was the only person in my extended family of that generation to go to university and it was a big deal back in those days. Instead of supporting my aunt's effort to get a degree, my mother thought it was a terrible idea because of the risk involved: so there was a possibility that my aunt could spend all that time and money at university and still fail her final exams. If that did happen, then that would be a total waste of all that time and money so by that token, according to my mother, my aunt would be better off cutting her losses and not bother with university at all as there was no guarantee that she would graduate. However, my mother failed to take into account of the fact that my aunt is actually really intelligent and there was really no question whether or not she would get through a degree programme - of course she did and with flying colours and that led to my aunt having a far more successful career than my mother who didn't go to university. However, my mother was acting like a very poor person refusing to spend her last $20 on a gambling game no matter how good the odds of winning may be. It was my mother's working class mindset that led to her poor judgment in this case - that experience with extreme poverty in her childhood had clouded her judgment.
Hence if you repeat that kind of behaviour over and over again, you start to convince yourself that you are actually being very rational and sensible. - that this is the right thing to do and others are simply being reckless. Such decisions make complete sense in their heads given the constraints they have to face, but what they fail to take into consideration is the fact that other people who do not have to contend with the same constraints would make different decisions to get a better outcome. However, in order for a poor person to attain social mobility, they have got to learn to make decisions like a rich person - so staying with the example of my aunt going to university, it was the right decision to invest all that time and money in her further education, even if it did come with a certain amount of risk that she might not even make it through her course or her degree wouldn't give her a good return on her investment. Thus when poor people become so risk averse because they simply cannot afford to take any risks, they end up sacrificing any potential gains that come with these risks, such as in the case of my aunt pursuing a degree; it is a sad situation because poor people often deny themselves the social mobility they badly need because of this mindset of being too risk averse. They need to do something drastic like what my aunt did to try to achieve social mobility, it can usually take a generation for this mindset to change but what my aunt did was to skip a generation: she wasn't going to miss out on going to university and hope that her children will get those opportunities in the future, she was going to do what was right for her when she had the chance. It is ultimately quite sad that people like my parents justify their attitudes based on this 'survival mindset' which would make sense if they were living in extreme poverty (and to be fair, for a while, they did), but it is no longer a useful mindset to have once you move out of that state of poverty and instead, this can work against them and hold them back from progressing in life. What does frustrate me though is that lack of honesty on my parents' part - are they ever willing to be honest with themselves and at least acknowledge that they have made some poor decisions? Sure at times, life might force you into circumstances (like when I didn't do my homework), whereby you need to hope to get away with it; but surely it would be far more rational to put in the effort and hope to reap the rewards of having succeeded at the task?
So there you go, that's it from me on this topic, what do you think? I think it's a bizarre situation as it is not like working class people don't want to take any risks, but it seems they always presume the worst when it comes to evaluating their chances, such as in the case of whether or not my aunt ought to get a degree or not. Why do you think working class people take that pessimistic stance and how does that affect their decision making process? How can working class people learn to handle the concept of 'risk vs reward'? Please do leave a comment below and many thanks for reading.
@LIFT, that is a very interesting POV I might add. I have never considered risk taking as something linked to social economic status.
ReplyDeleteI think your high-risk high-reward gamble is paying off handsomely for you. After all not many people would uproot themselves willingly from their country of birth to find their fortune in a foreign land.
But like you, I always take high risks. But not only working in an overseas country (China), but choosing to do a career switch twice.
I don't know many HNW individuals to comment on their risk appetite. I suspect there exists those who are very conservative as well. And this can be explain by the loss aversion psychological theory.
But the TED talk by Tina is very insightful. I need to start doing more of all three.
Well risk taking is something that you need money for - let me give you an example using my mother. She is terrible when it comes to going to a restaurant when she is presented with a menu, the concept of choosing something from a menu terrifies her because she is afraid that if she chose wrongly and got a dish she didn't like, she would have wasted the money paying for a dish and thus with her, she would always go to the same place in Ang Mo Kio and order the same dish every single time thus going out to eat with her is a very routine procedure as there are very few places she would be comfortable going to. Thus something as normal as trying a brand new restaurant is stressful for her as people with money can simply say, worst case scenario, I have a bad meal and I won't go there again. If you only had $5 left for food today, you wouldn't dare to take any kind of risk with it and you would make very conservative choices like going for something tried and tested. But if you had plenty of money to have a culinary adventure with, then you'll be a lot more relaxed about trying something new. Now the irony is that even though my mother has enough money to do the latter, her mindset is still stuck on poverty mode and she cannot bring herself to change that. Whilst she settles for tried and tested options, she is missing out on potentially better experiences as a result of this mindset. As for myself, I think I had this, "what have I got to lose" mindset. After all, I had a miserable childhood - I wasn't happy in Singapore, so there was really little to motivate me to stay in Singapore as an adult. Worse case scenario, I was miserable in Singapore, I would be miserable elsewhere - I wouldn't be worse off but it was a roll of the dice. I'm sure you're familiar with the game Blackjack, the aim is to get as close to 21 as possible. If you are dealt say a J + 7 = 17, then you will not be motivated to get another card as you need that next card to be 4 or of a smaller number in order to keep under 21. 17 isn't a great result in a game of Blackjack but you won't take the risk of going bust by drawing another card. I was dealt something like a 7 + 5 = 12. The chances of winning with a 12 is virtually nil as your opponents would probably have a better result, so you have little to lose by drawing another card and taking a risk. Sure I run a risk by drawing a 10, J, Q or K but I have little to gain by staying at 12.
DeleteAh, that I would argue is the mindset of fear of change or loss, etc that prevents one from taking risk (however trivial like choosing a meal).
DeleteBecause your mother clearly has the money (I would assume at least $500) so risking $5, or 1% of her money, is insignificant. Even if she were not to like the meal I also assume it would be edible still and can minimally fulfill the nutritional requirements of that $5.
Going by your nothing to lose logic I can also see some sense in that. But I was making decent wages in the healthcare industry and still left my job to do a second career switch which is very high risk. I can tell you I have all detractors and no one (even the ex) supported my decision except you.
Using the words benevolent to describe anything in SG is an oxymoron. The late LKY said there is no such thing as a free lunch. And the joke going around is that the ruling party acronym stands for pay and pay. If you had been following any news you would have read that Amos Yee would rather defy his parole rules and spend time in jail in the US of A then get deported back to SG.
DeleteRegarding mindset, I would say it is the risk-adverse mindset and not the abundance one that is holding all of them back. One of my contacts told me he would rather be stuck in a stable yet toxic environment than risk going without pay for one month. And as you already know, I share none of his sentiments. I would just keep trying, failing and not give up until I achieve success. That is the hustle mindset I have adopted since young and I won't ever change.
This study also shows that wealth and risk taking mindset is not correlated: https://www.straitstimes.com/business/more-than-half-of-singapore-s-rich-investing-more-in-safer-assets-like-cash-gold-study
DeleteWell, Amos Yee is seriously messed up as he has been involved in grooming an underaged teenager and supporting pedophiles in America, not to mention he was caught in possession of underaged porn material, that's why he is in trouble and has lost a lot of public support. I certainly don't support him and you need to realize why he is in so much trouble in America, he broke his parole rules by once again posting about underaged sex and pedophilia - it has absolutely nothing to do with Singapore per se. The man is sick in the head and has a really unhealthy obsession with underaged sex.
DeleteI think you have also totally misunderstood what I wrote above regarding working class and poor people HOPING for a benevolent entity (be it in the form of god, a government or employer) to take care of them. I said NOTHING about whether or not the PAP is benevolent or not. But I refer you to an awful video I saw on Youtube recently of a Palestinian woman in Gaza who lost her entire family including all of her children in an Israeli bombing in Gaza City. She was injured, covered in blood and had lost everything that meant anything to her. She was crying out and one of the lines of the subtitles wrote, "only Allah can help me now." In this case, she has nothing, she has lost everything and she is pleading to her god for help. Whether or not she will receive the help she is praying for is questionable, given the dire situation in Gaza now. But my point is that when people are poor, desperate and in need, they will hope that someone entity will step in and help them. Whether or not there is any basis of this hope is another matter altogether, but clearly this Palestinian woman is totally unable to help herself in this case. She needs a third party be it an aid agency, the UN, her fellow Palestinians or some kind of divine intervention to help her now.
Thus I NEVER ever once said that the PAP can or should be seen as a benevolent big brother who will step in and help poor, working class Singaporeans. I don't think they are at all. I think poor people need to learn to solve their own problems instead of asking or praying for help. However, what does frustrate me is the following two issues: firstly, poor people are blind to the fact that the PAP won't help them but would rather invent a version of 'alternative facts' where the PAP are a kind and benevolent organization who will render them some much needed help. This choice to believe in this alternative version of the truth is the fact that the poor in Singapore are totally unable to help themselves and placing their hope and faith in the PAP is all they can do - even if this is a dumb strategy. Secondly, I am frustrated that you actually misunderstood what I had written. I have as much hate for the PAP as I do for the working class of Singapore who believe in them. I hate both parties and have just as much disdain for them both.
As for the ST article, again you've misunderstood it - which suggests that you have a reading comprehension failure Choaniki. I don't think it's a problem with your command of the English language, but rather your attention span. The article shows a shift towards more conservative assets which isn't uncommon given uncertain times - such as when there are two major wars in the world now threatening to destabilize the global markets in a big way, especially if the Gaza situation gets a lot worse with other Arab nations being drawn into the conflict. This is a reflection on market forces reacting to what is happening in the world right now with the wars, rather than any kind of proof that rich people are still risk averse. I had a very good call with a wealth manager earlier today who was in fact looking for diversification rather than lower risk; diversifying your portfolio, looking for alternative investments, putting your eggs in more and more different baskets is how a lot of rich people and their wealth managers will hedge their bets in these volatile, uncertain times and they will also look for products with more liquidity, so as to be able to adjust their positions should market forces force them to shift their positions. Whilst the article didn't tell me what I already didn't know, it certainly does NOT proof the point you were trying to make, which means that you didn't read the article properly before sharing the link to it - reading comprehension fail.
DeleteIt just seems to me that you're so keen to scream anti-PAP rhetoric here that you have not considered what you are responding to and if what you wrote actually responded to the previous points I had been making. By all means scream anti-PAP if you need to but I'd appreciate it if you'd actually bother reading what I have written here before writing a response. In my previous post, I had said nothing to support the PAP and rather, I criticize poor working class Singaporeans for their folly and stupidity.
Typo: I *criticized* poor working class Singaporeans.
DeleteW.r.t the ST article, since I do not have the actual Lombard annual report I am unable to comment on whether their summary is accurate. But i did read the ST report and it did mention of, 'a hesitancy towards riskier investments such as digital assets and the more volatile listed equities.' As for your diversification point, the ST journalist wrote, 'understand the need for diversifying their portfolio, but this is not well implemented.' My main takeaway is the report is saying that a larger proportion of NHW Singaporeans are moving to safer assets as compared to their regional counterparts.
DeleteAs for the benevolent point, I did not mean to imply (and I re-read my comment to confirm this) that you are saying that Singapore has a benevolent entity (government, god, etc) that the working class people are turning their hopes to. And like you have reiterated, PAP is DEFINITELY not such an entity. It is just so strange that the majority (over 60%) of the working-class populace thinks that the SG government is such an entity and are angry about them not keeping the "social contract". Just read any of their manifesto, it is clear to see that they are supporting the corporations and paying lipservice to the average citizens.
As for being anti-PAP I am way past that, I am indifferent to them and ignore all of thier policies and government machinations. I look at ways to help myself and don't depend on them or their policies for any help, as you have mentioned the working-class should do. But I am the rare exception. And there are so many angry working class people are still out there hating on PAP and their policies as the recent presidential's elections have shown.
And finally about Amos Yee, I think he is beyond redemption. And according to Alvin Tan of Alvivi fame, he has a source that told him about Amos Yee's re-arrest. It had more to do with him going online (forbidden to use the internet) rather than anything he posted online. As for his motivations? Only he would know, I guess.
Now as for the ST article, I think there is a problem with that in that the real HNW clients don't manage their own assets, they would entrust that to an expert in the form of a family office or private banker. A rich person wouldn't try to cook their own meals, they'd hire a chef to do it for them so they get the best possible results, so many simply use investment & finance experts to do the same thing for them when it comes to managing their wealth. It is only those who are not rich enough to outsource it to an expert who will have to do it themselves and often these are people who lack the knowledge and experience to understand what is really needed in times of crisis, thus the whole premise of the ST report is flawed as it is reflecting the attitudes of the mass affluent rather than truly rich Singaporeans. Because if you ask a crazy rich Asian what they are doing with their investments now, the correct reply would be, "you'd have to ask my private banker about that, that's what I pay him for, to make sure I get the best possible service - he's really good at what he does."
DeleteAs for the attitude of the working class and poor people in general, well it is hope that a benevolent third party will somehow step in and rescue them from their distress. Take that distraught woman in Palestine for example - as I watched her reaction, I did wonder, how does she cling on to her religion at a time like this? If there is a god and her god did exist, why would her god allow this to happen to her and her family, to inflict this kind of inhumane suffering on her then? Yet she doesn't know who else to turn to at a time like this, so she turns to religion despite the fact that it doesn't make sense to a third party observer like me. Likewise for the working class in Singapore, their mindset is very similar to that woman in Palestine - they don't know who else to turn to, they only know two benevolent entities that come in the form of a) religion and b) government. Even a benevolent employer is questionable, I believe that an employer would only be good to you if you're earning them a lot of money. So if they pay you $10,000 a month but you generate $20,000 of revenue for the company a month, then the boss would treat you like a best friend. But if they're paying you $10,000 a month but you barely generate $1,000 in revenue, then you'll be treated like a waste of space and a loser. I believe in earning my keep, but if you're a poor working class person incapable of doing that, then you're forced to rely on the kindness and charity of others to solve your problems.
And as for Amos Yee, he's totally lost touch with reality. I think he needs to get into trouble to feel a sense of martyrdom. If he stepped back out into the real world in the USA, he has no education, no skills, no future - he would have to get a working class job in a fast food restaurant to barely make ends meet. Given the way he has behaved thus far, he'd probably rather rot in a jail cell than lead that kind of miserable life in the real world.
DeleteI actually feel very sorry for Amos Yee on a personal level, I know his background, his mother is a teacher in Singapore and I understand his need to rebel against all that and the need for him to express himself, get some attention and feel cherished. However, he is totally doing it the wrong way and he is only going to keep on hurting himself - somebody needs to step in and give him some help but I don't think he's gonna get the help he needs.
DeleteAmos Yee is beyond any help. The pastor Vincent Law who posted bail for him while he was in SG was falsely accused as being a child molester. And even that lawyer Melissa Chen who helped him obtain asylum has severed all ties with him. Amos is an adult now so time for him to get a dose of personal accountability.
DeleteHey Alex. I'm actually dating a guy who comes from a poor (rural) family but managed to get a job in tech and become decently upper middle class. He was telling me he did go to university, but dropped out after one semester because he didn't think additional student loans to complete a degree were worth it. Well yeah, you hit the nail on the head, even if the average return on investment is positive, if there is even a >10% chance of losing money, a poor person cannot absorb that loss and walk away unscathed so they are scared to ever try at all. I find that when I talk to people about investing, I instantly know within 5 minutes their family background. Someone from a poor family thinks unless something provides a 10,000% yearly return on investment, it's not worth it, because they only have $25-50 to invest, which really means they only have $25-50 to lose. While someone from a rich family is okay with a 5-10% return on investment because they invest most of their savings and have a lot more to invest in the first place. And such a low return usually means its generally a safe asset, but even if they lose 5-10% it's not too bad, they can absorb the loss through other income streams. Though like you said, a rich person doesn't usually handle their own investments, because they solve most of their problems by paying other people to solve them, e.g to clean their houses, cook their meals, watch their children, fix their cars, plan vacations, etc., so the same applies to saving for retirement or growing their wealth. My boyfriend was actually surprised I would rather pay someone else to change a flat tire in my car than do it myself, which he learned how to do when money was tight as a broke university student. But in my family, the solution to almost everything was always "pay an expert to save time" rather than "do it yourself to save money."
ReplyDeleteBy the way, regarding social mobility, I'm surprised that my boyfriend came from such a poor family. Because aside from his southern accent, I can't tell unless he told me. He does not talk or act like someone who comes from a poor family, and I think that's how he managed to get such a good job despite having no degree. Usually when I tell a poor person I come from a wealthy family, they might react in an envious way even though it wasn't my choice to be born in such a family, or they feel like they can't relate to me and shut down. My boyfriend is just like "oh that's interesting, very different from how I grew up, which was like this..." The ability to navigate social differences and not lose confidence is essential in working life, but nobody teaches you that in school. It's almost like moving between social classes is like moving to a totally different country and having to learn new customs and get along with the locals despite not being "in the know" in the beginning. Someone with good social skills can turn their foreigner status into a plus by bringing a unique perspective and selling it well, while someone with bad social skills comes off as an awkward outcast.
@Amanda, thank you for sharing your story. I wish you the best in your relationship with this guy.
DeleteUnfortunately for me I never had the fortune (yet) of encountering a benefactor in SG. I guess the majority of the managers and bosses are working class and have a very conservative mindset when it comes to hiring decisions and promotions. Which meant unless you have the certification or experience to backup your perceived value you are not getting hired. In fact you are not getting thru to the interview stage, with ATS system filtering out your resume.
As for paying an expert to do something, my experience is that just because you pay someone (even a large amount) you might not be getting a fair value. Coming back to your investment example, most of the "financial advisors" I used the services of always bought products that benefited themselves the most. It is a conflict of interest since there is no fiduciary agreement in place. I now manage my own portfolio. The adage, 'if you want something done well, do it yourself.'
Btw this is a small ask, I met someone who graduated from the US who is a software engineer by training. He was about to work in the US but due to various reasons his offer was withdrawn at the 11th hour and he had to return to SG to find work. Is it ok if I pass you his contact and you link him up with US opportunities? No obligation though.
Hi guys, @Amanda, yes it shocked me that not only were my parents risk averse, even my sisters were extremely risk averse as well and they have simply inherited that trait from my parents. However, my brother in law isn't risk averse and his background is very similar to mine - ie. working class kid worked hard at school, went to university, got a good job afterwards and attained social mobility. This has caused a lot of conflict between him and my family - long story short, he once lost money in an investment and my parents were like, he's gambling with the money that could have been saved for my nephew's further education - that means he is very irresponsible and not a good father. Whereas for me, I'm like, what did you expect him to do - keep it all in a current account in the bank and earn very little interest in it? That's low risk but really dumb as well, so I have seen how this difference in perspective can cause friction.
DeleteAs for @choaniki's point about financial advisors, oh dear - I think we cannot put them all into the same category. It's like putting someone who prepares food at your local McDonald's in the same category as the top chef in a Michelin star restaurant - hey they both prepare food and are both chefs, right? So why is one paid the minimum wage and the other one earning top dollar? I hate to point out the obvious but there are terrible chefs (employed at your local fast food restaurant) and really good ones and everything in between. I have dealt with some really incredible financial advisors before who are experts at what they do and of course, they don't come cheap - when they speak to a product provider like me, they know exactly what they want in their due diligence process. Then there's this company called De Vere who are the bottom of the barrel, comparable to the ones that Choaniki has dealt with. They prey on British expats living abroad in non-English speaking countries from Thailand to Spain, their strategy is simple, "hello, you're a British expat in Bangkok/Barcelona but you're too dumb to learn the local language, I'm a friendly fellow Brit who speaks English so you're going to let me handle your finances." But the people who use the services of De Vere get the worst products and these advisors themselves get very little training - they will never get respectable, smart business people to be their clients, they prey on bored housewives who are only too happy to speak to someone in English. Their level of technical understanding of the investment process is terrible, their focus is on preying on bored, isolated British expats who long for company. It's verging on a scam because the service they provide is so poor (but hey, everything is done in English). So yes, there are awful, terrible financial advisors out there but I can't stress this enough - like restaurants, you get what you pay for. You can't pay $10 for a meal and expect to have a fantastic experience, you may get a bargain at best but it isn't going to be that good. And given that you're not a high net worth individual Choaniki, those really good financial advisors who are brilliant at what they do would never ever speak to you, because you're not rich enough to be their client. But just because they'll never ever speak to you doesn't mean they don't exist, y'know.
I am not denying the fact the good and probably even great financial advisors exist. They are probably rare and headhunted to run family offices not to deal with retail clientele. So what choice does the mass affluent and retail people have? Not much to be serious. Just look at the state of Singapore's recent retail banking. It is all over the news for all the worse reasons. And I can totally understand why, banks don't want to invest money on retail banking as it either doesn't make them alot of money or loses them money (e.g. OCBC having to pay out large amount of money to cover losses of scam victims).
DeleteGiven the choice of having to pay huge fees to someone who is only happy for me to lose money (e.g. buying ILPs) or to educate myself and manage my own portfolio I would choose the latter. Why do I need to pay someone to lose my own money? At least by losing money myself I might learn an important lesson on how not to trade or what not to invest in.
I think you're really simplifying what is a complex situation into a simple black-white dichotomy. There are good financial advisors and bad ones out there, but there's everything in between the two extremes. I can spend $10, $100 or $1000 on dinner and what I get for my money will be vastly different as I will get what I pay for. It is never as straightforward as you have described and the words you have used does make you sound very naïve. You're completely wrong when you say that great financial advisors are rare and headhunted to run family offices, that's complete bullshit and fucking stupid - it is disappointing to hear you spout bullshit like that when you have already worked in finance. That's so disappointing, because that's just you talking out of spite rather than pausing for a moment to think about it. In this industry, there are good and bad financial advisors, the good ones can make good money for their clients and that's when they realize - why should I use these skills to serve the auntie who has $2000 to invest when I can use the same skills to serve super rich people who have millions to invest? That's why they gravitate towards super rich clients and ignore poor mass retail clients. The mass retail clients who have only a few thousands to invest are stuck with the bad financial advisors who will never be able to find a rich clients - so poor people get bad service, whilst rich people get good service. It's the same way poor tourists end up in a flea-ridden youth hostel whilst rich tourists stay at the best 5 star hotels. It's that simple. The reason why you have had such bad experiences is because (sorry to be blunt) you are poor. You are very poor and not worthy in the eyes of the competent financial advisor so they will simply ignore you - nothing personal, but you're not a target client for them. It sucks to be poor. Poor people cannot afford to stay in nice 5 star hotels or enjoy the finer things in life, but then again, am I telling you anything that you did not already know? You're in complete denial about how fucked poor people are and you seem to be implying that they deserve to be treated the same as rich people - yeah right, that's never gonna happen in a world ruled by capitalism, get real. That's why I am calling you downright naïve.
DeleteLet's stay with a down to earth analogy: I'm off on holiday tomorrow and I have compared the prices of the hotels in Moldova and Romania - there are essentially 3 tiers. Super luxury (5-star equivalent), upper end (3 to 4 stars) and lower end/budget (2 or less stars). You get what you pay for when it comes to hotels. Can you imagine if a backpacker says, "why are these 5-star hotels so expensive? What choice do ordinary people like me have when we cannot afford to spend that much money for 5-star accommodation? 5-star hotels need to be made more affordable for ordinary folks to access." That sounds totally ridiculous because anyone can stay at a 5-star hotel, you just have to pay for it. Likewise, very good services exist in the financial services industry in Singapore and again, like the 5-star hotels, you can't afford it. You're just complaining that the 1-star hotel that you can afford is terrible and my response to that is simply, you get what you pay for. Change your budget if you want a better experience.
Delete@LIFT, I went and re-read my comment and I think you misunderstood my point. The point I was making is if you are poor (retail client) you are SOL, and you pretty much confirmed it as well. So my point is that being the case, don't bother finding a financial advisor since only the poorly trained and predatory ones would want to deal with you. Instead learn personal finance and try to DIY. You might get better returns than what those bad financial advisors will be able to provide for you. I did not mean to imply that poor people are entitled to Michelin star quality food for McDonald's prices. But that does not mean they deserved to be scammed by lousy products and/or service providers either.
DeleteAnd I will take back all my comments on family offices and good financial advisors since I really don't have any idea how any of their recruitment goes. What I do know from my working experience in my previous broker, is that no company would deal with me in Singapore because I had "bad" (or commoditised as my director friend would put it) products and they can easily gain access to it at much better prices than what my company was offering. That is also the reason why the majority of their sales were from LATAM.
As for your hotel analogy, a working class person might be able to enjoy 5-star service if he saves up and pays the rack rate for the room. But that person might still be poor and this experience might be once in a lifetime. This is abit different in investing in Singapore (and probably other more regulated countries as well). MAS regulates the sales of all financial products and you would need to be an accredited investor (AI) in order to gain access to some of the more lucrative (high risk/high return) products. So you can't tell a financial advisor, I will pay you a higher commission out of my returns if you give me access to better products. They will just tell you that you are too poor (not an AI) and they would be unable to do business with you. So I think the hotel analogy won't really work in this instance.
Hey Choaniki, unfortunately I'm not in a position to hire right now neither do I know anyone who is. But all the best to your friend. Though to be fair, unless he has a greencard it is very hard to find an employer willing to sponsor a work visa in the US.
DeleteHey Alex, I think what poor people misunderstand is that the market can be cyclic with upturns and downturns, but generally trends upwards because of inflation. I used to have a working class coworker who liked to arrogantly claim "Warren Buffett said nobody can beat the market returns so all financial advisors/investors are crap! Might as well invest randomly!" Well, the point is not just to gain more ROI than the market, its also not to lose as much as the market when there is a downturn. From the quant perspective, risk management is an entire research field in mathematics https://www.risk.net/journals Yeah what was your brother in law supposed to do? Let inflation erode his savings?
Also Alex, I presume De Vere preys on older British retirees because you mentioned Spain and Thailand. That's very sad. But what I find interesting is that Choaniki has a general distrust of paying other people to do things for him. I suppose that's why the poor appear to be generally risk averse, because they have to dodge so much more scams on a daily basis than rich people who are chased by more legitimate businesses that do provide good value for the money. I mean have you ever been scammed by an architect or plumber Alex? Probably not, even if you could withstand the shock of a burst pipe not being fixed well.
Actually, one of my fencing instructors told us her family just bought and moved into a new house and that they were scammed by the housing inspector who missed that the entire house didn't have running water and had electrical problems. She had to get her insurance to pay for hotels while that was fixed. At least she had insurance though, she told us that because the house was unusually cheap, something like this was bound to happen. One of the other fencers' reply to this story was "oh you should use my realtor, she deals specifically with low-income buyers, and said her inspector will do a great job or she'll have beef with them." I don't think these kind of serious housing issues have ever happened to my dad when buying property(or you Alex), but then again only legitimate realtors/housing developers advertise to him since he bought property on the higher end of pricing rather than on the lower end.
Again, not true ref: being an AI and accessing better products in Singapore. It's not that straightforward - whilst it is true that a lot of product providers will only accept minimum trades of 100k+ for products for HNWIs (higher risk + higher returns), what you haven't realized is that some wealth managers do this thing called 'aggregating'. So for example, they have a product where the minimum entry level is half a million dollars, but they don't have a client who has half a million dollar to invest. But what they do is they take the money from 50 clients and each client invests 10,000 and so you get 50 x 10,000 = 500,000. The product provider sees one investor (the wealth manager) whilst the clients who only put in $10,000 still get the upside of the more sophisticated product. Now only a good enough company would do something like that if they have a big enough network, but it has been done by a number of companies to get round the problem of getting mass affluent/retail clients access to products designed for HNWIs/institutions. It can be done but once again, I don't expect a one-star financial advisor in Singapore who has no skills, no knowledge, no experience to offer that kind of sophisticated/complicated arrangement to take advantage of legal loopholes to maximize the clients' returns. Even then, you need to take into account of the fact that a good financial planner would never put 100%or even 50% of the client's money into one product, so even if the client has 100k to invest, then putting 10k into one product (ie. 10%) makes sense but it doesn't meet the minimum. Like I said, I've been playing this game long enough to know all the tricks of the trade, you don't and to be blunt, I know more than you. Can a working class person persuade a financial advisor from a big network to give them access to this kind of service? No, cos once again, you have the same problem of paying one-star prices and expecting five-star services, poor people cannot afford this kind of service. And even if they are able to somehow say, "I will find the money, I will pay you for your services", the financial advisor would then say, "okay how much do you have to invest? Erm, no, I can't help you." The reason being that financial advisors usually take a cut or base their fees on the amount invested and if a poor person has very little to invest, then it just makes no sense for the good financial advisor to bother as there's too little commission to be made with clients like that. And that's why poor people are scammed by terrible products and providers like that - because good companies look at them and say, "we can't make any money from them, we're not a charity, so we shall not serve that portion of the market." As for your former employer, well you had zero work experience and there was no way a more reputable company would have given you a job - you were lucky to have been given a chance at all, even if it was with a company like that.
DeleteHey Alex, yeah it's true if you're an individual poor person you will almost always get a bad deal, but what about unions or agglomerations of people? We've all heard about the Hollywood writers and actors strikes, but the writers did manage to score big because they struck as a union rather than as individuals. I heard in Canada if you're a public school teacher, your retirement savings go into one big pension fund along with other teachers, and this pension fund being the sum of thousands of teachers can afford to pay top financial advisors millions a year to manage it. In your experience, do these large pension funds get access to the best financial minds and products? My guess is that pooling your pension is probably not as good as someone who is super-rich and well connected to get the best financial managers, but not as bad as leaving money in the bank with a small interest rate. Probably somewhere in the middle.
DeleteHi Amanda, sorry I have no time to respond to your posts. It's 1:25 am now and I have a flight in the morning to go to Moldova - will respond when I get back next week.
Delete@Amanda, thank you for your reply regarding my friend. I suppose it is why he had to return to SG in the first place, if he had secured a green card or a work visa he would have remained in the US to work. But no harm in me asking.
DeleteAnd you hit the nail on the head about scams and risk aversion. My dad had (probably) been scammed or had to deal with many shady people while growing up so he is very risk adverse now. It is frankly off the charts! When he goes out to eat at the caipng (economic rice) stall he will ask for the price of every food item before making a choice. There was once he asked me to go to China to find a craftsman to commission a Guanyin sculpture out of rosewood, the problem was he was only willing to pay for the workmanship if he found it "nice" whatever that was supposed to mean. He had no picture or criteria for me to pass to the craftsman and I decided his request was impossible to fulfil. He is what @LIFT would describe as paying McDonald's prices and expecting to get served a Michelin-starred meal!
As for getting scammed, I deal with shady companies all the time. Recently I had to sue a contractor whom I engaged to change out my windows to a more soundproof variety. After more than 2 years of delays and a sub-standard product being installed I had enough and refused to make final payment. The small claims magistrate ruled in my favour that 2 years is an unacceptable time to expect completion of a project and that the final product (with scratches and dents) was not of an acceptable standard, something the boomer boss of the contractor company kept denying. So he now has to pay me money for wasting my time and to repair the faulty product. And this is not even me looking for the cheapest fly-by-night contractor to do my renovation work, it is just that all the big reputable companies won't have the time to deal with small projects like mine. And I am not saying that rich people don't get scammed, they usually don't have to deal with such shady service providers as they have access to the best products and service providers, something the poor working class do not have!
@LIFT, for aggregating, I have heard of it and seen it in action in some forms. E.g. money market funds pool retail investor funds and the fund managers go out to find the best fixed deposit accounts worldwide to invest. But the thing is that they give you slightly better rates than local fixed deposits yet you are faced with a larger amount of risk (counterparty, systemic, etc). So to increase your returns you optimally want to deal with the product provider directly or cut out as many middleman as possible, which only the HNWI can do.
@Amanda, I probably not the best person to answer your question about pension funds, but here is my 2cts from what I do know. Pension funds won't have better returns than what HNWI are able to generate, this is probably an indisputable fact. The reasons are various but one of them is simply the risk profile. You don't want your pension fund to face a 50% or more drawdown so obviously this limits the type of products the fund managers are able to invest in. HNWI don't have this limitation, they can invest in venture capital, private equity, pre-IPO, crypto, other alternative investment (e.g. fine art). And the other reason is that pension funds have more middleman handling the funds so every extra person administering the money is someone who needs to get paid. And a good example here is that SG's CPF makes returns (risk-free however) barely above inflation, I own bitcoin and have generated like over 10000% returns. But this is what @LIFT would term as rolling the dice and nothing to lose strategy, I don't recommend other people do it.
Hey Alex, have fun in Romania and Moldova! I heard Moldova has a lot of old monasteries and wineries to visit, if you're into that stuff.
DeleteBy the way, I'd like to add, as an engineer in her 20s, I've had to work with shoestring budgets before because I had no work experience, whilst competing with better funded competitors. I think that's the engineer equivalent of starting out as a new salesperson in finance having to sell a lower quality product than your competitors. Anyone can sell a Ferrari, a Harvard degree, or a Louis Vuitton handbag, those products basically sell themselves. It takes real sales talent to sell worse products like Squarespace, Masterworks, or Hellofresh, which is what social media influencers have to do on the daily. Likewise any engineer who is given an unlimited time and money budget can build anything. It's crazy how smartphones existed way before Apple but they were just ridiculously expensive and not affordable for the masses. Or how we can already make planes go faster, but supersonic jets went away because it was just too expensive to get enough customers to fill a plane. It takes a skilled engineer to build something that works, but is also cost-effective. And these shoestring budgets are how new engineers showcase their talent in order to be trusted with higher pay and bigger budgets to do more with, even if it looks like they're starting at a big disadvantage compared to their better funded peers. Can't take trust for granted.
Hi guys, I am back from Moldova and Romania. I did do loads of old churches and a climbed a cliff to get to a Monastery in cave in Moldova - it was 0 degrees, howling wind and the wind chill that day was insane but that's the kind of thing you do in Moldova. I don't do alcohol at all, I am teetotal so I avoided the vineyards and wineries as it's all wasted on me. We did eat loads of grapes whilst we were there though and you can see all my content on Instagram where I have posted loads of content @passportalex
DeleteAnd to revisit Amanda's earlier question - I don't have a magic wand to wave for poor people to get better returns on their investments. We are stuck with the fundamental problem that many people in financial services offer their services either a) at a fee or b) take a cut of your investments and/or profits when you let them manage your assets. Poor people cannot afford the high fees of the best advisors who are brilliant at what they do; likewise if they only have a tiny amount of money to invest, a % of a tiny amount is even smaller, so no one will be interested in helping them. In short, poor people are screwed - and don't look
Deleteat these big pension funds through rose-tinted lenses, they get a *slightly* better deal but all the middle men (ie. the financial experts) need paying so they'll get the bulk of the profits and pass on a little bit to the bus driver or teacher.
Ooh a monastery in a cave sounds really cool! Me and my boyfriend have been thinking of exploring some caves in America lately. Oh yeah I forgot you aren't a drinker Alex, I think you mentioned once about how your coworkers like to get drunk at the bar after work but you don't partake.
DeleteSo basically... you have to spend money to make money? Same applies to healthcare and education. Hell even technology is similar. Most tech companies build products for the middle class and up, not really poor people because they have so little disposable income to spend that a $200 tech product is not worth doing RnD for compared to a $1000 tech product.
It was a monastery not just in a cave, but the cave was on a cliff and there's an area you can stand on where there's a drop of hundreds of feet - there's no concept of health & safety in Moldova. It was absolutely stunning and quite the experience, despite the fact that I fell over descending into the cave in the darkness! But that wasn't the hardest part - using public transport in Moldova was challenging as Google doesn't have any info, or at least it is patchy. I had to literally run around the bus station and ask bus drivers for help, which is what we used to do before the internet but of course, in Moldova I did that all in Russian and/or Romanian, usually a mish-mash of both. People usually spoke to me in Russian as I could be from like Siberia or the Russian far east.
DeleteWow a cliff cave! That's so cool! Yeah, in the West, there'd be railings built on that cliff in case any of the tourists would fall to their death (especially a child). I googled the official language in Moldova, and I'm surprised it's Romanian. But then again Austria and Germany share the same language. It's nice you could use Russian in Moldova and other Eastern European countries you visited. And yeah I guess you could pass for a Tatar Russian, they look kinda Asian.
DeleteYour vacation sounded like a real adventure! Can you share one occasion where you went off the beaten path and discovered a real hidden treasure? I know Benjamin Bald previously went to Moldova and explored some Soviet infrastructure covered in graffiti, I'm wondering whether you managed to uncover similar places of interest.
DeleteOh everyone goes take pictures on that ledge of the cliff with no railings as it is famous - here's a video: https://www.instagram.com/reel/Cz1npPjsuPU/ And yes Moldova is Romanian speaking, long story as to why that part was carved up into joining the USSR but never reunited with Romania upon the break up of the USSR. The signs are in Romanian everywhere but people speak Russian still - so I give you an example, I was shopping in Chisinau and I heard the staff speak amongst themselves and it was all Russian. These were not older people, these looked like young people in their 20s who were educated after the fall of the USSR but they still spoke Russian amongst themselves. Then I looked at the clipboard behind the tills (which presumably showed staff schedules etc), again it was all in Russian but when I got a receipt for my purchase it was printed in Romanian as I suppose that's an official document. In short, the country continues to be bilingual today as a legacy of their Soviet past.
Delete@Choaniki - okay here's a story, on the bus to Tiraspol which is in the breakaway Republic of Transnistria, we had to be interrogated by Russian soldiers before being given a 12 hour visa. Rob my hubby made a friend with an English speaking Italian student on the bus and since he didn't speak much Russian, we adopted him for the day. He was well organized as he had downloaded a map of Tiraspol whilst I was simply working off my memory from what I had seen online (and I had confidence in my ability to memorize maps) but I thought, you have a map let's use your map. We needed to buy our return tickets to Moldova so we had a choice of either turning left at the junction (according to my memory) and going straight down the road according to the map - I trusted his map and we ended up in this industrial wasteland - talk about Soviet infrastructure rotting away, signs that were so rusted over you could barely read what they said even if you understood Russian perfectly. Luckily we found a petrol station and the two friendly guys there were shocked to see 3 foreigners lost in the middle of nowhere and were more than happy to help us with directions but of course, they didn't speak a word of English and I spoke to them in Russian. Turns out my memory of what I saw online was corrected and the Italian student had led us to an old bus station that was closed down years ago - the map he had downloaded on his phone was out of date and so we got to see how the real people live in abject poverty in Transnistria. The thing about Tiraspol is that the center is really nice, cos they wanna give tourists/visitors a good impression. We found this really modern playground for kids where everything was expensive looking, shiny and new and it's meant to give the impression that they are a rich city doing well with their crazy Russian system. But I suppose it's the difference between going to central Pyongyang and seeing the kids play in their nice new playground cos that's what the N Korean governments wants you to see vs venturing 3 blocks in the wrong direction and seeing the abject poverty in an area no tourists ever go to. Another good story was when we were in the 'Green Market' aka the central fruit & veg market, our Italian friend saw a packet of nuts he wanted to buy but he didn't have any local Roubles, so he tried to pay the lady in Euros, given that the packet of nuts was 16 Roubles and 1 euro = 17.6 Roubles so he was paying more for it with his 1 euro coin, but the lady has never ever heard of this currency called the euro and she literally went to asked her friend nearby, "this young man wants to pay me with this foreign currency, do you know what it is?" Her friend had no idea what the euro was either - it goes to show that these people in Transnistria are effectively on their own world, cut off from the rest of Europe to the point where they only consume Russian media and I felt like I had visited a small town in Russia that day.
DeleteI will probably do a post all about visiting the breakaway Republic of Transnistria, ie. the country that supposedly doesn't exist despite the fact that they have their own currency, they have self-government (with a massive Russian influence, they literally have Russian troops everywhere there), citizens there have their own passport and it is effectively a country but just not recognized. We could discuss this all day - like is HK a country? What about Taiwan or Macau? What about Kosovo or Puerto Rico? Western Sahara? Even Israel is not officially recognized by many Muslim countries, so where does that leave us? And there's Somaliland? So it's a sliding scale, a long topic for another day.
DeleteTransnistria is probably only recognised by Russia, I'm surprised that foreigners are able to obtain a visa/permit to visit that breakaway state.
DeleteActually, that's not true - Transnistria is not officially recognized by Russia despite Russia using it as a military base and the place is full of Russian troops everywhere you go. Like they are wearing Russian military uniforms with the Russian flag on it, you see the Russian flag flying everywhere there but Russia doesn't recognize it. The fact is it is only recognized by 3 other unrecognized countries: Abkhazia, South Ossetia and Artsakh. But with a Transnistrian passport/ID, you can only travel to Moldova and Russia, along with the 3 other unrecognized states. Artsakh has been crushed by Armenia this year so that leaves only 2 other unrecognized states as friends that recognize Transnistria. The only way to travel to South Ossetia is via Russia as their border with Georgia is shut after the Russian invasion. Same story with Abkhazia, it's another piece of land that originally belonged to Georgia but after a Russian invasion, broke away to form a pro-Moscow breakaway Republic just like Transnistria. Traveling to Transnistria is relatively easy actually: I bought a bus ticket at Chisinau central bus station for Tiraspol (the capital), the bus driver only checked that I had a valid ticket (he didn't even remind me that I needed my passport to enter Transnistria), we drove and got to the border, the Russian border guard merely asked me (in Russian, not English), what is the purpose of your visit? How long are you staying in Tiraspol? When are you going back to Moldova? Then based on those 3 questions, I was given a 12 hour tourist day-trip visa on the spot for free, they didn't even charge me any money for it. They didn't even stamp my passport, but they gave me a slip of paper with all the details of my visa which I had to surrender upon leaving Transnistria. I believe the same system is used when entering Macau, no stamp - just a piece of paper.
DeleteStupid typo on my part sorry: Artsakh has been retaken and reabsorbed into Azerbaijan (not Armenia) this year following a brutal war and many Armenians were expelled from the region.
DeleteOk my assumption was wrong. I see the common feature of these breakaway states is that they are Russia-influenced. And it makes sense that Russia wouldn't want to recognise them as independant countries since it is probably more interested in annexing them in the future aka Crimea.
DeleteAny looking forward to your Transnistrian blog post.
Russia wants to invade, occupy but doesn't want to start a war per se with another country - you can see how they called the full scale invasion of Ukraine a 'special military operation' when it was in every way, shape and form a war. So with the cases of South Ossetia and Abkhazia, Russia has effectively invaded and annexed those area, much like Crimea. It is a war, it is an invasion but Russia presents the narrative of, "oh this is their internal politics, the Russian speaking people of those regions are being oppressed and want to break away, this has nothing to do with Russia invading Moldova/Ukraine/Georgia, these are the people there determining their own future by forming an independent state. We are not at war, we are not involved - see? We are not even recognizing them as a country, how can we be at war?" It is a moot point whether or not Transnistria is officially recognized by Russia when it is effectively used by Russia as massive military base (it is x 5.5 the size of Singapore) so close to the European Union countries, especially since Moldova is desperate to join the EU ASAP after what happened in Ukraine. But given Russia is the world's biggest country, a tiny strip of land the size of Transnistria is only useful as a military base because of its strategic location. Hence the status quo of it being an unrecognized breakaway country that is 100% dependent on Russia and controlled by Russia (as it is a Russian military base with a huge amount of Russian troops) suits the Kremlin just fine. Moscow doesn't really want Transnistria to be independent and think for itself just in case it starts becoming more demanding, "hey in exchange for our support for you, how about investing more in Transnistria? We're so poor here, we need more help from Moscow. We need schools, hospitals, new infrastructure." No, Moscow is broke because of the war in Ukraine, thus this puppet state/unrecognized state situation actually suits Moscow just fine and thus Moscow will never recognize its claim to be an independent country.
DeleteBecause of the detour I had to take when we got lost looking for the bus station, we got to see how the real people live once you walk out of the center of Tiraspol - we're talking about Soviet era apartment blocks built in the 1950s and 1960s, which are crumbling, covered in soot and dirt, looking absolutely miserable. The brick work is falling apart and units have been abandoned where the blocks are deemed too unsafe, so you can have half an apartment block which has been condemned but people still somehow living in the other half of it as they have nowhere else to go to. If Transnistria was recognized as an equal partner in the negotiations with Moscow, the first thing they would do is ask for more money to build better housing for the people there. Moldova is one of the poorest parts of Europe but good grief, if you thought Moldova was poor - wait till you see the poverty in Transnistria. It's a weird kind of tourism, we go there to gawk at just how poor the people are, like they are white European people living in conditions akin to what you'd find in Africa today and until the war in Ukraine reduced parts of Ukraine to the same level of poverty, this was the only part of Europe where people still live like that and thus it attracts tourists in a weird way, who want to see what life was like back in the USSR as this place is frozen in time as if we're still in the 1980s in USSR.
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