Only Narrowing the Wealth Gap Can Increase Happiness

Only Narrowing the Wealth Gap Can Increase Happiness
China Times editorial (Taipei, Taiwan, ROC)
A Translation
July 18, 2011

Last year, economic growth on Taiwan exceeded 10%. International competitiveness greatly exceeded that of South Korea. The chief editor of South Korea's Dong-a Ilbo heaped praise on President Ma Ying-jeou, saying he far outperformed South Korean President Lee Myung-bak. But on the happiness index, South Korea brought up the rear, and Taiwan trailed even South Korea. For both economies, their well-being indices lagged far behind their economic growth indices. Most people within the two economies are not experiencing the benefits of economic growth. That is why the two presidents are trailing in the polls.

Consider last year's data. In terms of economic growth. Taiwan far outperformed South Korea. Consider the past decade, South Korea enjoyed an average growth rate of 4.17%, higher than Taiwan's 3.93%. During the financial crisis, Taiwan's economic growth rate was -1.9%. South Korea by contrast, was one of the few members of the Economic Cooperation and Development (OECD) to maintain a positive growth rate. Since 2004, Korea has surpassed Taiwan in per capita income, This year, for the first time, per capita income on Taiwan surpassed 20,000 USD. It now has a chance to surpass South Korea.

Consider the unemployment rate. Over the past decade the unemployment rate for South Korea has remained at 4% or less. During the financial crisis it never exceeded 4%. During the financial tsunami, the unemployment rate on Taiwan soared past 5%. It fell to 4.27% in May of this year. But it still ranks first among the Four Asian Dragons. It is worth noting that South Korea's atypical employment rate (temporary workers, employment agencies) has increased significantly, in recent years. Taiwan has also experienced the same trend.

Taiwan and South Korea's are economic rivals. But behind the bright economic growth, both economies face a widening gap between rich and poor. According to South Korean government figures, per capita income for the 20% of people at the top of the economic pyramid rose 55% over the past decade. Per capita income for the 20% of people at the bottom of the economic pyramid decreased 35%. As the local media put it, the wealth gap is clear from where people live. The "royalty" live in the the exclusive Gangnam District. There, one ping goes for 30 million won (about 1 million NT). In other parts of of the city one ping goes for 14 million won (about 400,000 NT) Below that is where one finds ordinary people or servants.

Unfortunately, in recent years, the wealth gap on Taiwan has become worse than in Korea. The "Gini coefficient" is an international indicator of the wealth gap. The higher the coefficient, the greater the gap between rich and poor. South Korea's Gini coefficient is 0.314. Taiwan's is 0.345. In recent years, the biggest public grievance has been soaring housing prices. In June the government introduced a luxury tax. But housing prices in the greater Taipei area remain virtually unaffected. In June existing-home prices soared another 10%, setting new highs. In Taipei luxury housing goes for two to three million NT per ping. People without homes can look but not touch.

Consider the manufacturing industry. Revenues earned by former South Korean tycoons account for 70% of the nation's GDP. The South Korean government fully backs its large enterprises. During the financial crisis the Korean Won depreciated nearly 50%. Yet large export-oriented enterprises such as Samsung and Hyundai showed record profits. Ironically, real purchasing power for locals fell due to currency devaluation and higher prices, Life became even more difficult for them. A clear example occurred in June, when South Korean students protested excessively high tuition fees. Many parents could not afford tuition fees approaching 20 million Won (about 300,000 NT). Some students even committed suicide because they could not pay their tuition. To solve the problem, President Lee Myung-bak has pledged to cut tuition at the end of June.

Lee Myung-bak has been called the CEO President. His top priority has been to boost the economy. He introduced a number of policies favorable to conglomerates. According to statistics, the number of subsidiaries controlled by South Korea's thirty largest chaebols has doubled since the financial turmoil. Even small businesses making pizza and tofu have not been spared, Many small and medium enterprises have been swallowed up. Outside criticism and the upcoming election, persuaded President Lee Myung-bak to order a "large and small enterprises shared development committee" review at the end of June. Over 200 types of businesses, including tofu manufacturing, will be reserved for SMEs. Will the "bean curd campaign" work? It will depend on Lee Myung-bak's political will.

Economic growth is up. But are people happier? South Korea's local media wonders. Over the past decade, South Korea's per capita income rose from 10,000 US to 20,000 US. But the South Korean people's happiness index has declined. South Korea's well-being index in the OECD is at the bottom of the heap. Consider the Gallup "global happiness" survey. Among the 124 economies evaluated, Denmark had the highest happiness index. As many as 72% of the population was optimistic about the coming five years. In South Korea, that number was 35%. On Taiwan it was a mere 32%. Both economies were in the bottom half of the class.

Consider the economic growth rate, the wealth gap, and the happiness index. South Korea and Taiwan have many similarities. But a wise leader must realize that economic growth is not necessarily shared by all. It does not make all people happier. Only specific policies that narrow the gap between rich and poor can enhance happiness for most people.

縮小貧富差距 才能增加幸福感
2011-07-18 中國時報

台灣去年經濟成長率逾十％，國際競爭力評比大幅超越韓國，因而韓國東亞日報主筆撰文盛讚馬英九總統政績遠勝韓國總統李明博。不過，如果從幸福指數來看，韓國屬於後段班，台灣排名更落後韓國。這段經濟成長與幸福指數的落差，正好說明了為何兩國總統民調均低迷不振，因為兩國多數民眾對經濟成長「無感」。

從經濟成長率分析，如果只看去年一年的數據，台灣的表現遠勝韓國；若拉長十年來看，過去十年來韓國平均經濟成長率達四．一七％，高於台灣的三．九三％。金融海嘯期間，台灣經濟成長率曾為負一．九三％，韓國則是經濟合作發展組織（ＯＥＣＤ）中少數維持正成長的。在人均所得方面，韓國自二○○四年起超越台灣，台灣則是在今年首次突破二萬美元，並有機會超越韓國。

再看失業率，最近十年來韓國失業率均維持在四％以下，金融海嘯期間也未超過四％；台灣在金融海嘯期間飆破五％，今年五月下降至四．二七％，仍高居四小龍之首。值得注意的是，近年來韓國非典型就業比率（臨時工、人力派遣）大幅增加，台灣也有相同的趨勢。

台灣與韓國在經濟上互相較勁，但亮麗的經濟成長背後，兩國均面臨貧富差距擴大的隱憂。韓國官方統計，近十年來金字塔頂端二十％的人均收入增加了五十五％，而最底層二十％的人均收入卻減少了卅五％。當地媒體形容，從居住地區可以看出貧富差距，住首爾江南精華區的是「皇族」，該區每坪逾三千萬韓元（約新台幣一百萬元），而住在其他地區每坪一千四百萬韓元（約新台幣四十六萬元）以下的則是平民或傭人。

遺憾的是，近年來台灣貧富差距惡化的程度遠勝於韓國。以國際上觀察貧富差距的指標「吉尼系數」（系數越高表示貧富差距越大）來看，韓國為○．三一四，台灣為○．三四五。近年來房價飆漲問題成為民怨之首，政府自六月起開徵奢侈稅，不過，大台北地區房價幾乎不受影響，六月的成屋成交價依然向上飆升一成，再創歷史新高，台北市豪宅動輒每坪二、三百萬元，無殼蝸牛只有望屋興嘆。

從產業面來看，韓國前卅大財閥營收占ＧＤＰ的七十％。韓國政府傾全力扶持大企業，在金融海嘯期間韓元大幅貶值逾五成，以出口為主的大企業如三星、現代集團的獲利反而創歷史新高；諷刺的是，當地老百姓卻因貨幣貶值、物價高漲，實質購買力降低，生活變得更苦。六月間，韓國大學生串聯示威抗議學費太高即是明顯例證。每年近千萬韓元（約新台幣卅萬元）的學費讓許多家長負擔不起，有些學生甚至因付不出學費而跳樓自殺。為解決高學費問題，李明博總統在六月底已承諾調降學費。

被喻為ＣＥＯ總統的李明博上任後，以拚經濟為首要任務，推出許多對財團有利的政策。據統計，韓國前卅大財閥掌控的子公司較金融風暴前倍增，他們連披薩和豆腐這種小生意都不放過，使得許多中小企業不支倒地。針對外界的批評與即將到來的大選，李明博總統六月底下令由「大小企業共享成長委員會」檢討包括豆腐在內的兩百多個營業項目，將保留給中小企業。這項「豆腐戰爭」究竟能否發揮功能，就看李明博的魄力了。

經濟成長率上揚，人民是否更幸福？韓國當地媒體質疑，過去十多年來，韓國的人均所得從一萬美元跨越二萬美元，但韓國民眾的幸福感卻下降，韓國的幸福指數在ＯＥＣＤ中更是墊底。再看蓋洛普公布的「全球幸福」大調查，在一二四個受評國家中，幸福指數最高的是丹麥，高達七二％對目前與未來五年生活感到樂觀，而韓國為卅五％，台灣只有卅二％，兩國均屬後段班。

從經濟成長率、貧富差距到幸福指數，韓國與台灣的確有許多相似之處，不過，聰明的領導人應該心知肚明，亮麗的經濟成長率如果不能讓全民共享，那是無法讓全民變得更幸福的。唯有拿出具體政策縮小貧富差距，才能提升大多數人的幸福感。