Asian tigers leaving Taiwan behind (2018 edition)

There is a strong tendency on this board to overgeneralize based on personal experience. Some of that comes with living in a foreign country and thinking your experiences are more profound than they are. You guys often correct each other, but not all the time.

I majored in economics for my undergrad. If someone else did too, speak up. Some of the comments in this thread fly in the face of economic reasoning, and some don’t align with facts.

First, stricter labor laws/mandated salaries do not make your economy grow faster, it does the opposite. This may be counter-intuitive. But a firm cannot close down factories to produce at the most efficient level in the short run. If they can’t fire or are forced to pay people a wage that’s not efficient, that’s a double whammy because both capital and labor are fixed.

Second, some of the things said here are factual. Some aren’t. Income taxes too high??? This is especially odd coming from those of you from Europe.

Taiwan is pre-tax, the most egalitarian societies on the planet.

Scandinavian countries are about as equal after taxes.

Gotta go to work.

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@OysterOmelet Lots of interesting things in your post, but I do wish to complicate this statement:

The problem here is using income, and not wealth, to measure equality. They are not the same. And based on the latter, Taiwan is a highly inequal society.


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When your wages and labor laws are so bad that workers care little if nothing about their work they do impede your economy and they are stopping growth

Are you talking about net worth vs income?

I am referring to “wealth” as total assets and debts, in contrast to “income.” I am using these terms sociologically to talk about social inequality. My source is Oliver and Shapiro’s remarkable study Black Wealth / White Wealth, 2nd edition (Routledge, 2006). It’s a great book and well worth checking out.


Yeah, that’s net worth.


Fair enough. So why doesn’t one company undercut everyone else by instituting better labor practices?

I’m Taiwanese American. Everyone bow down to me.

check your privilege, …uhm…white/yellow boy?

This time is the case that you guys correct each other.

She does have more economics training.

I know the law program at the University of Chicago has a large economics component.

Maybe someone familiar with LSE’s law program can opine whether it does too.

Chicago? Tsai was educated at Cornell, then at LSE.


Right, that’s why I asked about LSE.

Chicago law is unique in that its grads would be trained substantially in economics. Was asking if LSE were the same.

Also, someone tell me why Taiwan needs more foreign investment when it already has excess savings (savings that’s not invested).

Taiwan needs people investing in new enterprises. Taiwanese refuse to

Also, overseas companies coming in and offering decent labor standards could be the panacea for the whole economy to improve. Which is one of the reasons for the resistance from both DPP and kmt

You guys acting that ultra conservative Tsai and her corrupt minions are in any way reformers is just cute. Tsai is in no way more economic savvy than Ma. Both the DPP and KMT are the same bar one single issue.

OK, tell me why foreigners would invest more in new enterprises when domestic demand is weak.

Because Taiwan has a highly educated and skilled base of mis managed human resources. Also Mandarin speaking without the red tape of China.

Similar reasons Google bought HTC r&d department

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