Like 'go west,' credit debt's a threat

A few days ago, Democratic Progressive Party (DPP) legislators and the opposition reached an agreement to amend the Banking Law (銀行法) in order to help "card slaves," by regulating the interest rates of credit cards and cash cards.

This move was fiercely opposed by banks and the Financial Supervisory Commission (FSC).

But legislators should be admired for speaking up and fighting for what is right.

It also reminded the general public and banks that although the trend is towards liberalization, the financial and economic sectors still require order and management (in fact, the FSC's restriction on establishing new financial holding companies and banks also violates the liberalization principle.)

The credit card problem and the problem with companies moving to China have different effects on the government.

In the case of credit card services, both beneficiaries and victims are in Taiwan.

Although it creates problems in the lives of hundreds of thousands of "card slaves," it is possible to resolve the issue through wealth redistribution measures such as interest exemptions.

As for Taiwanese businesses going west, without effective management the losses and suffering created by the economic slowdown, falling real salaries and increasing unemployment rates will have to be borne by all 23 million Taiwanese. This is because those who benefit are sitting on the other side of the Taiwan Strait.

More seriously, if the nation's industry continues to move to China and the government continues to relax regulations, it will not be long before Taiwan becomes an economic satellite of China.

Politically, Taiwan could lose its liberal democracy after being swallowed up by totalitarian China. When that happens, the card slave problem will be a minor issue, and those suffering the real tragedy will be 23 million Taiwanese slaves.

Huang Tien-lin is a national policy adviser to the president.

Translated by Daniel Cheng and Perry Svensson