Income Inequality and Social Justice in Thailand: Why the 10,000 Baht Stipend is Hardly the Solution
By Janpha Thadphoothon
Hello. First and foremost, I want to let you, my readers, know that I am an English language teacher, not an economist or public administration expert. I am sharing my thoughts as a concerned citizen, and these are simply my two cents on the matter of public well-being.
The Thai government’s decision to hand out a 10,000 Baht stipend to some of its citizens as a way to boost the economy is, in my opinion, a short-term measure that falls short of addressing the root causes of our nation’s economic challenges. You would agree with me that while such policies might seem appealing at first glance, they are not sustainable solutions to the deeper issues that plague our economy.
Short-Term Relief, No Long-Term Impact
I think it's obvious that handing out cash provides immediate relief, but what happens after the money is spent? Common sense tells us that this kind of approach does little to address the underlying problems that have led to economic stagnation in the first place. The 10,000 Baht might get people to spend more temporarily, but once the spending spree is over, what then? You do not have to be an expert to know that real growth comes from long-term investments—creating jobs, supporting innovation, and improving infrastructure—not from short-term handouts.
Inflation and Rising Costs?
Another point to consider is inflation. If you pour money into the economy without increasing productivity, prices will go up. My opinion is that the 10,000 Baht stipend could end up doing more harm than good by contributing to rising prices. When people have more money to spend but the supply of goods and services doesn't increase, it’s only natural that prices will rise. In the end, what was meant to be a relief could actually reduce the purchasing power of the people it was intended to help.
Inefficient Use of Resources
You would agree with me that not everyone needs the 10,000 Baht. Some people may be financially stable, while others are struggling to make ends meet. A blanket distribution of cash doesn't address the varying needs of the population. Common sense tells us that it would be far better to direct resources toward those who really need help—low-income families, struggling small businesses, or sectors hit hardest by the pandemic. I understand that the government faces challenges in applying consistent criteria across the country. However, the goal needs to be clearer.
Encouraging Dependency
I think it's also worth mentioning that handing out money can create a culture of dependency. You do not have to be an expert to know that when people get used to receiving free money, it discourages long-term economic self-sufficiency. Instead of promoting consumption, wouldn’t it be wiser to invest in skills development, education, and entrepreneurship? These are areas where real opportunities for growth lie. In my opinion, a stipend is a short-term solution that doesn't empower people to improve their economic standing in the long run.
Missing the Opportunity for Long-Term Investment?
Now, let's talk about the opportunity cost. The money used for the stipend could be invested in things that really matter. You would agree with me that Thailand’s economy needs long-term investments in education, healthcare, infrastructure, and technology to remain competitive. My opinion is that if the government focused on these areas, the benefits would be far more sustainable than what we’re likely to see from a one-time cash handout. Common sense tells us that investing in people and infrastructure pays dividends in the long run, while a stipend offers a quick fix that won't last.
Risk of Public Debt
You do not have to be an expert to know that handing out large sums of money without proper planning increases public debt. The government will need to borrow money to fund this program, which could lead to fiscal problems down the road. In my opinion, it is dangerous to focus on short-term fixes at the expense of long-term financial health. Worsening public debt will limit our ability to invest in future projects that could have a lasting impact on our society.
Limited Economic Boost?
Finally, let’s be honest. The 10,000 Baht stipend will likely provide a marginal boost to the economy. Common sense tells us that after the initial spending surge, the economy could return to its previous state. You would agree with me that this is not the type of growth we need to lift the country out of its current predicament. Real change will come from structural reforms—improving the ease of doing business, fostering innovation, and ensuring that the benefits of economic growth are shared fairly across society.
Competence in Using Digital Money?
The Thai Government’s argument that the 10,000 Baht stipend will enhance digital wallet usage has some merit, as it provides a direct incentive for people to start using digital financial tools, potentially improving digital literacy and fostering long-term adoption. By integrating the stipend into digital wallets, individuals who are unfamiliar with these tools might become more comfortable with them, thus increasing financial inclusion. However, this approach may only offer short-term engagement, as it doesn't address deeper issues of digital literacy and access. Not everyone has the necessary devices or internet connectivity, and the program might not provide the ongoing support needed for effective use. For a more impactful strategy, it would be beneficial to combine the stipend with comprehensive digital literacy programs and infrastructure improvements to ensure sustainable adoption and meaningful engagement with digital financial tools.
In my opinion, the 10,000 Baht stipend is not the solution to Thailand’s economic woes. You would agree with me that real, sustainable growth requires long-term investments in people, infrastructure, and innovation—not short-term cash handouts. Common sense tells us that while the stipend may provide temporary relief, it fails to address the deeper structural issues holding our economy back. Thailand deserves better, and we can do better by focusing on solutions that will lead to lasting prosperity for all.
References:
Thai News ข่าวไทย. (2023, October 29). Government contemplates providing 10,000-Baht digital wallet stipend. Thailand Business News. Retrieved from https://www.thailand-business-news.com/economics/108664-government-contemplates-providing-10000-baht-digital-wallet-stipend
About Janpha Thadphoothon
Janpha Thadphoothon is an assistant professor of ELT at the International College, Dhurakij Pundit University in Bangkok, Thailand. Janpha Thadphoothon also holds a certificate of Generative AI with Large Language Models issued by DeepLearning.AI.
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