It’s called relatively. It’s an official report, what else do you expect them to say?
Ok. How about this: Germany’s population is much older than France’s population and the birth rate is also much lower. Who has the better economy?
It’s a very common scenario in my experience. They are not taught to write in the same I was growing up.
Oops.
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I don’t get why so many people think Taiwan’s economy is doomed. By most metrics its actually quite successful and healthy. Real gdp growth is keeping up with south korea despite a much higher gdp ppp per capita and increasing political isolation. In a few years Taiwan’s gdp ppp per capita will be higher than all major economies except the US. The main problem imo is wage stagnation which is being addresed by the government. Wage increase and lower working hours should lead to higher domestic demand and help close the gap in real gdp as well.
Also to the comment about emerging markets. Who cares, its an outdated and loosely defined metric. Many organizations consider Taiwan to be a developed market and most of the ones which consider taiwan to be a developing market, include Taiwan as a province of China and not a separate entity.
@Apirant [quote=“Apirant, post:105, topic:168975”]
The main problem imo is wage stagnation which is being addresed by the government. Wage increase and lower working hours should lead to higher domestic demand and help close the gap in real gdp as well.
[/quote]
It’s not being addressed. Tsai famously said last year, if you have a problem with your company or wages, “then go and speak with your boss” 勞工當面爭權益 蔡英文：去跟你老闆說！│一例一休│抗議│TVBS新聞網
The government is doing nothing to support workers rights, they have recently introduced policy that set labour laws back 100 years.
Do you live in Taiwan?
Say no more.
Please read Biggus Dickus’ link. Some indices have Taiwan and Korea as developed, some don’t.
Which means you are wrong about the downgrade. The only country that has ever been downgraded is Greece.
I was wrong on that. I was thinking of the Ralph Jennings Forbes article from a few years ago that referenced the MSCI. What actually happened was that MSCI was reviewing Taiwan for a possible upgrade, but ultimately ruled against it. Minute distinction.
But in the process of calling me ignorant, you’ve released a couple more incorrect statements. Plenty of countries have been downgrade aside from Greece, Just google “emerging market downgrade.”
In any case, back to the main point: Taiwan certainly doesn’t have the full range of financial instruments available to the United States. Venture capitalists only fund hardware startups, they’re allergic to funding software.
This requires more discussion.
Economists prefer to use PPP. And on a PPP basis, Taiwan is wealthier than Korea ($49K vs. $31K), But although the PPP adjustment is necessary, it may be overstating things a little bit. Food in Taiwan is dirt-cheap, both Western and local foods.
Korea is a good country for comparison because the two were given basically the same endowments.
- Medium-sized population.
- Japanese colonial legacy.
- Former agrarian society.
There are several indicators that Korea is more developed than Taiwan, some mentioned on Forumosa:
- Nicer baseball stadiums (Professional baseball in Taiwan is dysfunctional due mostly to a cultural addiction to gambling).
- Higher rates of car ownership (This is due in part to Taiwan’s illegal VAT on car imports. Someone should sue Taiwan within the framework of the WTO).
- Better insulated buildings (Well, it doesn’t get that cold in Taiwan. People in Seattle don’t even have air conditioners, and no one thinks Seattle is underdeveloped).
Those items in which Korea is ahead are there due not to wealth but to stupidity on the part of Taiwanese.
The only thing Taiwan does better, that I can think of, health care. Taiwan has 3 hospitals in the top 100, and 9 in the top 200, while Korea has zero in the top 100 and 1 in the top 200.
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Is this a joke? China, South Africa, Russia etc. had their credit downgraded, Greece was downgraded from a developed market to an emerging market. No other country in recent history has experienced such a flop economically.
So now baseball stadiums are an indicator to economic development …
Are you serious about that degree in economics?
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Baseball is the main reason I’m on here. This is the only place I can vent about Taiwanese baseball in English. Just like the Economist’s Big Mac Index is a lighthearted way to measure of PPP, baseball serves as a glimpse into the country.
But if you really doubt my credentials, you can google my ass.
I’ll admit that doubting your credentials is a cheap shot. Apologies.
However, this is just laughable.
If that was the case, I never would have come to Taiwan. I hate baseball.
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