Faced with a grim economic crisis, US Republican presidential candidate Senator John McCain and his Democratic rival, Senator Barack Obama, are engaging in intense debate. McCain, with close ties to big business, has increasingly made remarks that run counter to public sentiment, proposing continued deregulation of the financial system and reliance on free markets.
At a time of chaos on global financial markets, shrinking domestic demand and aggravated poverty and social conflict, McCain’s statements deviate from the social and economic realities facing the average citizen. No wonder Obama jumped on McCain’s economic proposals, asking him: “Senator, what economy are you talking about?”
One point of contention in the US financial bailout is the question of which social group profits and which group loses.
In the same way, it is important to consider who will be the beneficiaries of Taiwan’s attempts to contain economic and financial damage. The Cabinet and the Presidential Office’s economic advisory task force have proposed a series of measures to revive the economy, such as halving the securities transaction tax, reducing the inheritance tax and providing a blanket guarantee for private deposits.
The global economic crisis and soaring energy and food prices have led to a deterioration in living standards.
Between January and August this year, the average unemployment rate, the number of weeks of unemployment and the number of people laid off because of closures have hit three-year highs. In the same period, the unemployment rate for college graduates jumped to 4.16 percent, the highest level since 1978. In August, each job seeker had an average of 0.79 job opportunities, the lowest level since July 2001. In addition, local wage earners saw their income decline by 2.72 percent in real terms in the first seven months of the year, the worst decline in 28 years.
We do not mean to attribute the declining economy and public suffering to the government on this basis alone. However, a government that boasts of the ability to feel the pain of the people must take a serious look at its policy priorities: Whose pain are they feeling, and whose distress are they relieving?
It is true that the government’s policies are aimed at protecting the disadvantaged and promoting employment growth, but judging from policy strength, focus and effectiveness, these measures are still at the discussion stages or implemented perfunctorily.
Even the Chinese Nationalist Party’s (KMT) own think tank admits that the results of measures for caring for the disadvantaged and for stimulating consumption have been limited.
More importantly, in its eagerness to save the stock market, the government has intervened in a free market by activating the National Stabilization Fund and prohibiting short selling for two weeks. When it comes to price hikes in electricity for household use, however, the government stresses “a return to the market mechanism.”
This double standard is transparent to a public whose distress the government is trying to relieve.
Meanwhile, it is questionable that halving the securities transaction tax and reducing the inheritance tax — measures worth tens of billions of dollars that mostly benefit wealthy people — will achieve the goals of accelerating capital flow. Without supplementary measures, these actions will increase social injustice and eat up money needed for educational and social policies.
So, we also must ask the government and their economic experts: “What economy are you talking about?”
The government has time and again emphasized the mid and long-term economic measures cannot yield instant results.
Even so, we ask if the government is ready to establish a transparent political and financial system and if it is willing to allocate resources to education, the job market and social security. Only then can the government establish a truly healthy and complete economic environment.
While the KMT has long subscribed to neo-liberal ideas and stressed the omnipotence of the market, the fact is that only the strong make a profit and the weak lose out.
When structural problems in the capitalist system are revealed, it is time for the government to adjust its policy direction and stress the balance between nation, market and civic society.
Yang Wei-chung is a social activist. Lee Wen-chung is a former Democratic Progressive Party legislator.
TRANSLATED BY TED YANG
President William Lai (賴清德) attended a dinner held by the American Israel Public Affairs Committee (AIPAC) when representatives from the group visited Taiwan in October. In a speech at the event, Lai highlighted similarities in the geopolitical challenges faced by Israel and Taiwan, saying that the two countries “stand on the front line against authoritarianism.” Lai noted how Taiwan had “immediately condemned” the Oct. 7, 2023, attack on Israel by Hamas and had provided humanitarian aid. Lai was heavily criticized from some quarters for standing with AIPAC and Israel. On Nov. 4, the Taipei Times published an opinion article (“Speak out on the
More than a week after Hondurans voted, the country still does not know who will be its next president. The Honduran National Electoral Council has not declared a winner, and the transmission of results has experienced repeated malfunctions that interrupted updates for almost 24 hours at times. The delay has become the second-longest post-electoral silence since the election of former Honduran president Juan Orlando Hernandez of the National Party in 2017, which was tainted by accusations of fraud. Once again, this has raised concerns among observers, civil society groups and the international community. The preliminary results remain close, but both
News about expanding security cooperation between Israel and Taiwan, including the visits of Deputy Minister of National Defense Po Horng-huei (柏鴻輝) in September and Deputy Minister of Foreign Affairs Francois Wu (吳志中) this month, as well as growing ties in areas such as missile defense and cybersecurity, should not be viewed as isolated events. The emphasis on missile defense, including Taiwan’s newly introduced T-Dome project, is simply the most visible sign of a deeper trend that has been taking shape quietly over the past two to three years. Taipei is seeking to expand security and defense cooperation with Israel, something officials
The Taipei Women’s Rescue Foundation has demanded an apology from China Central Television (CCTV), accusing the Chinese state broadcaster of using “deceptive editing” and distorting the intent of a recent documentary on “comfort women.” According to the foundation, the Ama Museum in Taipei granted CCTV limited permission to film on the condition that the footage be used solely for public education. Yet when the documentary aired, the museum was reportedly presented alongside commentary condemning Taiwan’s alleged “warmongering” and criticizing the Democratic Progressive Party (DPP) government’s stance toward Japan. Instead of focusing on women’s rights or historical memory, the program appeared crafted
RSS