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Lee Hsien Loong at the 69th Economic Society of Singapore Annual Dinner.

Victor Tan
 

Two nights ago, the Prime Minister’s Office of Singapore posted an excellent talk by Singaporean Senior Minister Lee Hsien Loong at the 69th Economic Society of Singapore annual dinner!

There is plenty to learn about and a ton of different insights on many different topics from SM Lee, and I highly recommend anyone who is interested in the economics of our changing world order to watch it with interest and even to consider taking notes.

There is plenty to learn here, from marginal thinking to tariffs to the realities of taking back a policy – and it is all very much worthwhile.

The only part that triggered me a little bit was when a lady representing Singapore’s GIC asked a question about the skill sets that will be important for the workforce in the age of generative AI; I made a small contribution on the page as such, and you can also read it here, through the pictures.

Here was my response.

SM Lee,

Thank you for the insightful talk, which offered me a lot of insight into trade policy, the politics intertwined with economics, the Pandora’s box that is Liberation Day tariffs, and so many other things!

It was packed with insights and many thoughts that I found were interesting to think about – I certainly will choose not to lie flat and hope to make a difference in many good ways, whether from where I am in Malaysia at the moment or in any eventuality of time when I should move to Singapore, which I would be happy to if the correct opportunity were to come along.

If I were to make a small contribution, SM, the lady from the GIC was asking specifically about generative AI, which is not in general the same as artificial intelligence and machine learning models that seem more pertinent to the examples you provided. Generative AI is more ChatGPT than medical diagnosis, and is more related to creating text, images, and videos upon prompting and making use of computing systems in order to create things that humans might otherwise not have the inspiration or understanding to be able to do – which encompasses anything from writing emails from bullet points – and then summarizing emails into bullet points!!! – to doing homework and in turn to generating pictures and even movies.

Perhaps part of the skill of functioning well in a generative AI world is knowing and understanding what it means to be human and how to accentuate and articulate that humanness in the face even of multiple AI-generated sources of influence, whether to appeal to others who are also human through personality and advocacy or being able to distinguish what was artificially generated from what was humanly made to finer and finer degrees even as we become more integrated and AI in turn shapes our patterns of thought.

I would further add to that that at 43:56 you said “automatic” general intelligence, Sir.

If I may make a small correction, it is actually Artificial General Intelligence; although it is yet to come fully into existence, the challenges that it poses, I think, are not just about what statistical models can produce, but in turn also touch upon the question of whether it can self-improve and get to a point whereby it becomes independent of human beings – a notion that is very interesting, philosophically speaking, though it is unclear that in the scenario of existence of such a thing, the concept of moving to another industry would be relevant.

It is definitely logical to think about what the technology can do at this point and to understand its implications and possible uses and how it can translate into second- or third-order effects as the technology changes.

We are left fundamentally still with the problem of managing how human beings live, work, interact, and negotiate the boundaries of a world that is changing and has changed in both this era and beyond.

Thank you again for your sharing, and I look forward to learning more from you in the future – if at a later point you will take up my invitation to join me on my podcast, I look forward to meeting you in that context then!

V.

Sorry for the irregular updates of late – will try to get back on track in a bit; enjoy the video!

Yours,

Sepupu.

IGCSE Economics 0455 Paper 2 Sample Responses!

Victor Tan
 

Sepupus, very happy to announce to every single one of you out there that now we have sample responses for the IGCSE 0455 paper 2 for 2024 – and more of them are going to be coming out in the next couple of days! 

If you are a student preparing for the IGCSE Economics 0455 in the next couple of days and months ahead, you’re going to find this extremely valuable experience exclusively available for those of you who are in our Premium Memberships tier! 

Sign up today from US$12.50 per month at the lowest, and join us in an epic journey of economics learning and many other things along the way!

Here’s a sample of what that looks like!

Some of these are free to access but then you have to sign up for a free membership – I hope it will be a helpful resource for your practice and growth as an economic thinker!

Enjoy, and you’ll find the sample response bank right over here. 

More to come in days ahead! 👋

What is Economics and Why Learn About It?

Victor Tan
 

Hello everyone! In this post, we will talk a little bit about what economics is and why you should understand it. 

Why talk about why you should understand it? 

Because, well, I think it’s boring to just provide a definition of the word which I’m sure some of you have heard about before you even heard about this website. 

So, let’s begin!

What is economics? 

In classic economics style, let’s start with the definition. 

Definition:

Economics is the study of how people allocate scarce resources for production, distribution, and consumption both individually and collectively. 

If you think that’s abstract, come a little closer to home and imagine that you have a thousand dollars in your pocket. 

For some of you, you might think that that’s a very big amount of money – you can buy all the chocolates you want and so many video games you might declare, rejoicing all the way. But then, let’s suppose you do that. And it turns out that you were supposed to use the thousand dollars to pay for your rental.

What happens then? 

Well, I guess you can’t pay rent. 

And there we have it – scarcity.

Although the $1000 seemed like a lot to you, they were not an infinite amount of money, and after you spent it, it was gone, and you couldn’t use it on the rent that you were supposed to pay.

But then imagine now that you’re in a scenario where you don’t have to pay that rent and you just have $1000. 

Does that mean that you should infinitely rejoice? 

Well, it’s nice to have $1000 for sure, but if you’re thinking like an economist, then the following non-exhaustive list of questions might pop into your head: 

  • How should I spend my money? 
  • When should I spend my money? 
  • Should I spend all of it? 
  • Should I spend some now so that I can get more in the future? 
  • Should I spend it all now? (because I’m not sure if tomorrow will ever come). 
  • Should I give it to someone else?
  • Should I convert this money into another currency today so that I can spend it on more stuff in the future, one year down the line? 
  • Should I put it into a stock, a bond, or savings account A, B, or C if I want this money to have more value in the future? 
  • Will I be able to buy more stuff in the future if I wait until next year to spend it? 

These questions are evidence that you are faced with a choice because of scarcity.

The fact that you are asking these questions reveals an uncomfortable truth: some choices are better than others. 

For example, spending a thousand dollars on learning a skill that will make you ten thousand dollars one year down the line makes a lot of sense (hint: buy our resources? LOL), but maybe buying 333 stacks of Pringles makes a little less, and using the $1000 as collateral to borrow $10,000 so you can bet on horse races is going to ruin you. 

Why Learn Economics?

So why should you learn economics then? 

Will it immediately make you become rich? Probably not.

Will it immediately teach you how to invest? Maybe not.

Will it ensure that you will never face struggles in your life? Probably not either.

But it will teach you about the constraints and the choices that we face in society on a deeper level than just “Oh no, I am out of money!”

After all, understanding economics is understanding the many choices that you can make not only with money but also with resources in terms of how we save, spend, and invest these resources.

It is also understanding that every entity in the world – every family, every business, every government, society, country – is subject to those rules as well: money is not unlimited, time is not unlimited either, and every moment we exist poses a question of how our resources should be dedicated towards the best possible outcomes. 

I hope that understanding economics will help you see the world in a new and hopefully interesting light that will illuminate your path in one small way or another. 

Thank you for reading and I look forward to seeing you in the next posts and resources ahead!