More than 50 percent of Taiwanese in their 30s are either underemployed or heavily in debt, a survey released by 1111 Job Bank on July 12 showed.
The poll found that the average monthly starting salary for people in their thirties was NT$25,930, but 41.76 percent of their salaries was used to pay off debt, and a higher percentage in high-cost areas such as Taipei. Average salaries in Taipei are lower than those in many major Asian cities, even though Taipei’s cost of living is not much lower.
In Tokyo, the average monthly rent for a modest one-bedroom apartment within a short distance of downtown is ¥112,307.69 (NT$30,918), compared with NT$18,982.46 in downtown Taipei. Monthly utilities in Tokyo for an 85m2 apartment are ¥21,646.22 (NT$5,959), compared with NT$2,639.16 in Taipei. However, while rent in Tokyo is 1.7 times as high as in Taipei and utility costs are 2.27 times higher, the average starting (post-tax) salary in Tokyo is ¥332,402.33 (NT$91,509), 3.5 times as high as in Taipei.
Not all costs in Tokyo are higher than those in Taipei. Kindergarten tuition, which is subsidized by the Japanese government, is 35 percent lower in Tokyo than in Taipei. All of this equates to a better quality of life for Tokyo residents — and the city is not unique in this regard.
Young people with the opportunity to leave Taiwan often do so, with many going to work in China. The government must help raise salaries before the problem seriously effects development and national security. China is taking advantage of the situation by offering incentives to attract Taiwanese young people, which is affecting attitudes toward China and risks the erosion of Taiwan’s democracy.
Aware that they might never be able to buy a home, many Taiwanese appease themselves by spending heavily on products with depreciating values, such as cars, luxury items or expensive vacations. Those without money pay for such consumption with credit so that they can keep up with the Joneses.
Research has shown that social media use affects consumer spending habits and Taiwanese are among the heaviest social media users in the world.
A report published by the American Chamber of Commerce on April 12 last year cited data from Statista showing that Facebook’s penetration rate in Taiwan is 82 percent — the highest in the world for the platform — and cited a survey released by the government-backed Market Intelligence and Consulting Institute in October 2016 showing that nearly 95 percent of people in Taiwan had some experience using Facebook.
By contrast, a report from the Pew Research Center published on March 1 this year said that only about 68 percent of adults in the US had Facebook accounts.
The heavy use of Facebook and other social media in Taiwan equates to innumerable online interactions leading directly to purchases. A big reason for this is the tendency of users to compare themselves with others when they are online.
A study by Allianz Life Insurance Co of North America published on March 15 by CNBC said that 60 percent of “millennial” respondents felt “inadequate” after comparing themselves on social media.
Another study by Keith Wilcox of Columbia University and Andrew Stephen of the University of Pittsburgh found that those who spent more time on social media were more likely to have lower credit scores and more credit card debt.
Taiwanese shoppers tend to make the majority of online purchases through Chinese platforms such as Taobao, which does not help Taiwan’s economy.
The government should do more to discourage people from purchasing habits that lead to the accumulation of excessive debt, while working harder to raise salaries across all industries.
Could Asia be on the verge of a new wave of nuclear proliferation? A look back at the early history of the North Atlantic Treaty Organization (NATO), which recently celebrated its 75th anniversary, illuminates some reasons for concern in the Indo-Pacific today. US Secretary of Defense Lloyd Austin recently described NATO as “the most powerful and successful alliance in history,” but the organization’s early years were not without challenges. At its inception, the signing of the North Atlantic Treaty marked a sea change in American strategic thinking. The United States had been intent on withdrawing from Europe in the years following
My wife and I spent the week in the interior of Taiwan where Shuyuan spent her childhood. In that town there is a street that functions as an open farmer’s market. Walk along that street, as Shuyuan did yesterday, and it is next to impossible to come home empty-handed. Some mangoes that looked vaguely like others we had seen around here ended up on our table. Shuyuan told how she had bought them from a little old farmer woman from the countryside who said the mangoes were from a very old tree she had on her property. The big surprise
The issue of China’s overcapacity has drawn greater global attention recently, with US Secretary of the Treasury Janet Yellen urging Beijing to address its excess production in key industries during her visit to China last week. Meanwhile in Brussels, European Commission President Ursula von der Leyen last week said that Europe must have a tough talk with China on its perceived overcapacity and unfair trade practices. The remarks by Yellen and Von der Leyen come as China’s economy is undergoing a painful transition. Beijing is trying to steer the world’s second-largest economy out of a COVID-19 slump, the property crisis and
As former president Ma Ying-jeou (馬英九) wrapped up his visit to the People’s Republic of China, he received his share of attention. Certainly, the trip must be seen within the full context of Ma’s life, that is, his eight-year presidency, the Sunflower movement and his failed Economic Cooperation Framework Agreement, as well as his eight years as Taipei mayor with its posturing, accusations of money laundering, and ups and downs. Through all that, basic questions stand out: “What drives Ma? What is his end game?” Having observed and commented on Ma for decades, it is all ironically reminiscent of former US president Harry