This recession involves complicated financial factors. There is no hope of a quick recovery for the economy. Not only for this year, but also for the next two or three years, the government must exercise caution in drawing up budgets and make sure that expenditure and revenue are balanced.
The KMT should have the courage to admit that it has misjudged the global economic situation and not sink into complacency again. Yet it continues to make policy announcements on opening Taiwan to Chinese investment to attract capital. These will come to nothing; they are incomprehensible.
The government’s annual general budget should distribute funds appropriately, on the one hand by promoting the transformation and upgrading of manufacturing industries through funding for small and medium-sized enterprises, and on the other by proceeding with public construction projects to stimulate domestic demand.
We call on the government not to focus on dragging hot money into capital and property markets to create the illusion that prosperity is just around the corner. Such a policy may bring relief to big business, but it will also lead to even more trouble for the general public.
Hong Chi-chang and Wong Chin-chu are former and serving Democratic Progressive Party legislators respectively.
TRANSLATED BY JULIAN CLEGG
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