Nobel laureate Angus Deaton yesterday lent support to basic income grants as part of government efforts to mitigate wealth and consumption inequality.
“The government should take care of people with low income and should be pushing basic income grants,” the economist told a forum at the Taipei International Convention Center.
Basic income grants, or guaranteed income, are a government-ensured guarantee that no citizen’s income falls below the level necessary to meet their most basic needs.
Advocates say the program is an efficient, effective and equitable solution to poverty that not only promotes individual freedom, but also keeps the beneficial aspects of a market economy in place.
Deaton, a professor of economics and international affairs at Princeton University, said that risk, even stationary risk, cumulates into inequality when shaped by rapid technical progress, globalization and a rapidly changing world.
“The larger the factor of shocks, the riskier the world becomes, the more potential there is for increases in inequality,” he said.
Deaton was awarded the Nobel Prize in Economics last year for his analysis of consumption, poverty and welfare, with the Economic Sciences Prize Committee saying that his work linking individual choices and aggregate outcomes had helped transform the study of microeconomics, macroeconomics and development economics.
Deaton last year said that there are still 700 million poor people in the world and they are “a constant reproach to all of us.”
Wealth inequality is likely to increase at a much faster pace unless there is some offset from an insurance arrangement under a range of personal and social mechanism that ties people together, Deaton has said.
Deaton has said that climate change and inequality are the two greatest challenges facing the world, adding: “I do worry about a world in which the rich get to write the rules.”
Deaton has also taken a keen interest in Taiwan, calling it “the home of saving” because people at all ages save a lot, just as all ages save little in the US.
He said he is not able to account for the phenomenon after examining housing, bequest and small business ownership needs.
Deaton rejected the link between Taiwan’s excessive savings and Confucianism, adding that South Koreans are also influenced by Confucius, but save less.
STEADY: Prices are to rebound following inventory rebuilding demand, TrendForce said, with Samsung Electronics Co further trimming capacity as it slashes DDR4 lines The contract prices of DRAM chips are to rise by as much as 18 percent sequentially this quarter — the first price upticks in about eight quarters — driven mainly by inventory rebuilding demand for DRAM chips used in mobile devices and PCs, TrendForce Corp (集邦科技) projected yesterday. The price rebound is led by a quarterly increase of mobile DRAM chips, which are to climb between 13 percent and 18 percent quarter-on-quarter this quarter, which has not been seen since the fourth quarter of 2021, the Taipei-based market researcher predicted. Likewise, the price of mainstream PC DDR4 DRAM is expected to bounce
SOLID FOUNDATION: Given its decades of expertise in megatronics, manufacturing and robotics, Japan has the wherewithal to create its own AI, Jensen Huang said Nvidia Corp plans to help build an artificial intelligence (AI) tech-related ecosystem in Japan to meet demand in a country eager to gain an edge in this emerging technology. The US company will seek to partner with Japanese research organizations, companies and start-ups to build factories for AI, Nvidia CEO Jensen Huang (黃仁勳) said yesterday during opening remarks in a meeting with Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura. The company is to set up an AI research laboratory, and invest in local start-ups and educate the public on using AI, Huang said. Huang earlier this week met with Japanese Prime
A Hong Kong court postponed a court hearing on troubled Chinese property developer Evergrande Group’s (恆大集團) winding-up petition scheduled for yesterday until Jan. 29. Evergrande is trying to win support from its creditors for a plan to restructure more than US$300 billion in debt to stave off liquidation. The company’s lawyer told the court it was requesting an adjournment to “refine” its new debt restructuring plan. The Hong Kong High Court has postponed the hearing over Evergrande’s potential liquidation several times. Judge Linda Chan (陳靜芬) had said in October that yesterday’s hearing would be the last before a decision is handed down. Chan
Huawei Technologies Co (華為) is among a field of “very formidable” competitors to Nvidia Corp in the race to produce the best artificial intelligence (AI) chips, Nvidia chief executive officer Jensen Huang (黃仁勳) said yesterday. Huawei, Intel Corp and an expanding group of semiconductor start-ups pose a stiff challenge to Nvidia’s dominant position in the market for AI accelerators, Huang told reporters in Singapore. Shenzhen-based Huawei has grown into China’s chip tech champion and returned to the spotlight this year with an advanced made-in-China smartphone processor. “We have a lot of competitors, in China and outside China,” Huang said. “Most of our competitors