Is Taiwan’s Economy Sound or Not Sound?

 Is Taiwan’s Economy Sound or Not Sound?

China Times Editorial (Taipei, Taiwan, ROC)

June 14, 2017

 Translation of an Except

Whether Taiwan's economy is in reality sound or not sound seems to be an issue of no convergence. The government endlessly makes public statistical data showing exports continuingly climbing, GDP growing higher than expected, foreign direct investment achieving new highs, and TAIEX reaching 10,000 points. However, the private sector, on the other hand, is quite different, complaining about stagnant wages, while commodity prices continue to rise, cutting real income. According to a survey conducted for the anniversary of the Tsai administration by the Taiwan Public Opinion Foundation, nearly 70% of the public are dissatisfied with the government’s economic performance, reaching a new high.

For the over 11 million in the salaried classes who have their noses to the grindstone, in exchange they get only meager wages, not being able to see any opportunity for improving their livelihood. In return for GDP growth, we get the deterioration in the distribution of the income; how do we expect the people to have any feelings of growth? When Premier Lin Chuan granted an exclusive interview with Bloomberg, he indicated that salary hikes would stimulate an increase in commodity prices, and that the government should not cavalierly adjust wages. This is obviously arrogance of knowledge, not caring about people’s sentiments, but being conceited in his professionalism. The new government has been in office for a year; what it cares about is the economic data on the surface, and does not care about the real feelings of the public.

The TAIEX has returned to 10,000 points after a long hiatus, but this time, it has not stirred popular passion. In the past, whenever it reached 10,000 points, stock brokerages would open bottles of Champagne in celebration, but this time the brokerages have very few clients, leading to a playful labeling of " 10,000 points of no feeling" by outsiders. In the market structure that has lost equilibrium, only large foreign holdings of weighted stocks and high-priced stocks led to the TAIEX climbing to 10,000 points, with rare participation of sundry stockholders; thus the people, of course, have no feelings for 10,000 points.

From the DPP that has returned to power, the higher the expectations of the people, the higher the despair. The sustained sliding of support ratings for governance in various opinion surveys has clearly revealed this fact. Reviving the economy is definitely not just a matter of rhetoric; it requires actually producing beef on the plate. The important thing is this plate of beef must not be served to specific industries or specific persons, but must, as much as possible, satisfy all people, especially the numerous salaried classes. In the matter of reviving the economy, how to make all trades prosperous and make people feel hope, rather than showing pretty economic data, may perhaps be the crux of resuscitating Tsai Ying-wen’s survey ratings.

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