Part I Chapter II
Her dissertation, sheds light on some of her policies.
Her speeches and debate performances mirror the way she wrote her dissertation—point-by-point.
Some here on Forumosa have decried that her minimum wage increases haven’t gone far enough, and for outrageously suggesting workers “go talk to your boss,” if they want a raise. In spite of being billed a progressive candidate, her economic POV appears to be quite non-interventionist.
As I mentioned in a previous post, her dissertation was written against the backdrop of steeply rising oil prices. The higher cost of energy will force countries to substitute labor for energy, giving an advantage to countries with cheaper labor. She argues:
The minimum wage makes wages “inflexible downwards.” She goes on to say that this causes unemployment problems for developed economies, which can be politically destablilizing. And unions make wages inflexible.
However, Tsai recognizes that this isn’t always the case, because societies might actually want higher wages and pay for it with unemployment.
However, if trade unions hold society hostage, she considers the possibility of using legislation to keep wages going down like they should!
Tsai appears to recognize that given the proportion of entrepreneurs that comprise Taiwanese society, too high a minimum wage would not be socially optimal; hence her measured response to stagnant wages in Taiwan.
Tsai’s views are in line with mainstream economic thought. Higher minimum wages are desirable, but they don’t come at no cost. Although I’ve heard that LSE is more left-wing than American schools, based on Tsai’s thesis, it isn’t by much.
There are many other interesting tidbits on trade theory, but I’m just looking digging for insight on Tsai’s policies.