$100 for All
Taiwan's misdirected stimulus effort.
3600元消費卷全民有獎! 台灣錯誤的刺激經濟政策
From today's Wall Street Journal Asia
取自 華爾街日報
The global financial crisis has given rise to many harebrained schemes around
Asia (see: Japan, stimulus plan of), and to that list add Taiwan's latest
policy outing: shopping coupons worth $100 for every man, woman and child.
The giveaway is slated to start in time for the Chinese New Year holidays
early next year and will set the government back some $83 billion Taiwan
dollars ($2.5 billion). Taiwanese residents need only take their ID cards to
the nearest housing registration office or post office to receive the
vouchers, which can be redeemed at registered stores and restaurants.
President Ma Ying-jeou's popularity ratings are in the low 20s, and perhaps
he hopes this will distract voters from the fact that so far on his watch,
GDP growth is contracting and the stock market is down by over 50%. The
Taiwan government predicts the vouchers will boost GDP by some 0.64% next
year, but color us skeptical. Wavering consumers are more likely to spend the
coupon on things they'd buy anyway and save the "spare" money.
Mr. Ma will have to look elsewhere for meaningful stimulus. Rather than
saddling future taxpayers with debt for what will be at best a slight
temporary relief, better to boost the economy by cutting taxes and reforming
inefficient regulatory structures. A World Bank survey released last month
put Taiwan in 61st place globally for ease of doing business, down from 58th
place last year -- definitely an area that could use improvement.
The voucher program is just one of several ill-conceived ways Taiwan has
tried to tackle the crisis: The stock exchange has banned short selling until
the end of this year, and a $15 billion government stabilization fund has
plowed millions into the stock exchange since September in an effort to shore
up prices.
Faced with a global financial downturn, Taiwan's response hasn't been
entirely negative. Significant tax cuts were announced as part of a stimulus
plan in September, and trade with China is becoming easier thanks to the
recent political détente. But to really weather the crisis, Taiwan's leaders
will need to separate the good ideas from the bad. A policy that may be
politically popular today won't be smart economics tomorrow.
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※ 編輯: johnsonteng 來自: 140.112.248.185 (11/22 13:32)
※ 編輯: johnsonteng 來自: 140.112.248.185 (11/22 13:32)