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rooster59

Labourers still in heavy debts

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Labourers still in heavy debts

 

labour1.jpg

 

About 96% of Thai labours are in debt, with an average debt amounting to almost 140,000 baht for a household, according to the University of the Thai Chamber of Commerce’s survey released ahead of the Labour Day on May 1.

 

The UTCC’s Center for Economic and Business Forecasting conducted a survey on debt problem on about 1,200 labourers with monthly earnings of less than 15,000 baht.

 

The survey, released on Thursday (April 26), found the highest recorded debt incursion in 10 years since 2009.

 

Full story: http://englishnews.thaipbs.or.th/labourers-still-heavy-debts/

 

 
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-- © Copyright Thai PBS 2018-04-28

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12 minutes ago, rooster59 said:

found the highest recorded debt incursion in 10 years since 2009.

 

I thought happiness had been returned to the people???

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4 minutes ago, PatOngo said:

I thought happiness had been returned to the people???

It has, but happiness can't buy money

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8 minutes ago, coulson said:

It has, but happiness can't buy money

......well I guess that poverty can buy happiness. 

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GDP figures are a good index for wealthy people.  Poor people are getting poorer.

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Priorities and impossible to think about the next weeks/years

 

All Thai friends have better phone than I have, all of them go to quite expensive restaurants more often than I.

 

Even though I could afford it, and they live paycheck to paycheck. Eating instant noodles the last week before salary.

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"...The center director Thanawat Pholvichai said the survey found that 96% of the total labour force were in debt and total average household debt amounted to 137,988 baht per household with each of the labour household has a monthly installments payments of 5,326 baht.

He said, however, it was fortunate that 65.4% of their loans are legitimate or official loans which carries an interest rates of 10.6%.

The rest 34.6% are unorganized loans which lenders would charge them 20% interest per month. In such a huge borrowing rate, he said labourers then often defaulted their loan payments to these loan sharks..."

 

If I were the government of Thailand and I cared about the common man (yes, I know, but...) I would be terrified by these numbers; they are a nuclear reactor waiting to melt. How are these people expected to both re-pay their debts AND save money for retirement? I don't see how it can be done, especially with labourers; they are not the sub-set of the workforce who are going to move into ever higher-paying employment. 

 

Thailand has managed to maintain growth for several years (although it would have been more without the coup, but that is a different post), but can it grow fast enough to support these people? Is there the political will to support these people? My quick answer is... wait for it... not likely.

 

Jump to flashing red warning light!

 

Finally a quick story from back in the day along the lines of the posts above. I lived in Indonesia and shared a house with some Indonesian teachers. At the end of the month they had no money, so they survived on glasses of tea with an inch of sugar in the bottom of the glass. YUCK! I suppose that I am grateful; after watching them drink that, I stopped adding sugar to my tea or coffee right there on the spot and never took up the habit again.

 

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Maybe they should live within their means. And by that, I mean they should live in the cheapest apartment, eat the cheapest food, no luxuries and get the bus to work, etc. They won’t have much to save with for the future, so if they could die a few years after retirement so as not to be a burden to the rich and powerful who love to pillage the state coffers. If they could do this, that woold be great for the 1% here. 

 

Or, they can question why such a small group of people have so much and why they have so little. I know, I know. It happens in other countries so by that logic no one can question anything that happens. 

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An off topic deflection post regarding household debts in the west has been removed.

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2 hours ago, rooster59 said:

The survey, released on Thursday (April 26), found the highest recorded debt incursion in 10 years since 2009.

And I seem to remember a story on here last week about the banks lending even more money to them. Madness

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7 minutes ago, RichardColeman said:

And I seem to remember a story on here last week about the banks lending even more money to them. Madness

No worse than the pay-day loans in UK charging 2400%, aimed at the poorest families. Can you imagine that over here?

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a big part is the fact that many here try to liver beyond their means, you see them with the latest phones, new bikes/cars etc,  they simply want more than they can afford but do not accept they cant afford it. My wifes cousin  borrowed 20,000 baht to put  fancy wheels on his truck, he also borrowed to put in a big sound system and now cant afford to make the payments yet he still goes out drinking and smoking, refuses to accept he is in debt or to make payments, waiting for his car to be seized. Until people stop trying to live beyond their means it will continue unfortunately, many simply dont accept they cannot buy whatever they want

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This is the problem with a debt-fueled society.  Banks provide easy credit, 'artificial wealth' is injected into the economy, prices rise, wages fail to match inflation, and the only way the average folk can make ends meet is by accumulating more debt.  Banks are complicit and predatory, and when the house of cards falls, the banks pull in favors from politicians in order to be made whole via the government.
Privatized profits, socialize losses - and screw everyone but the rich in the processes. 

This will end badly.  This is how unregulated capitalism works.  I'm not anti-capitalism, but it needs checks and balances.  The working class should not be driven into debt servitude just to live.  Yet - here we are!  And it is not something unique to Thailand.

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Economic slavery. Oldest trick in the book.

 

Works best if the masses are uneducated. Thailand is doing an amazing job on that front.

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It has, but happiness can't buy money
No but it sure makes it more comfortable.

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