Main Topic: Economic Stimulus Taiwan Style

Hosts: James Stanworth, Clyde Warden

At the start of the 2008 economic downturn, a new president was elected in Taiwan. The new administration undertook an economic stimulus package centering on consumer spending. Rather than reduce taxes or send a tax rebate, Taiwan gave out a stimulus voucher to everyone. The voucher looks like a coupon and can be spent at any retailer in Taiwan. Clyde and James take a look at this interesting fiscal approach.

The mountain area between Taichung and Chunghua is in central Taiwan and presents a great view of Taichung City. You will have to take my word for it since when we got out to shoot, Taichung was covered in smog and the sky was overcast. Here is a view on a clear day, and here is another. 

At the top of the mountain is a cow farm--actually a tourism spot, so we packed up the gear and drove over to the ranch (here is a blog post about the place). These farm trips are quite popular in Taiwan such as here, another one in Changhua. 

 There are some very innovative economic ideas here in Asia.

Listen To The Show (Audio Only):

Length: 12 minutes. Download MP3 5.69MB (Right click->Save As).

Watch The Show (Video & Audio):

From Taichung, Stephen, James, and Clyde.
Length: 12 minutes.

iPod Download MP4 53.87MB (Right click->Save As).
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High Quality mp4 H.264(640x480) Download high quality mp4 91.83MB (Right click->Save As).
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ConsumerCam:

Vid. 1) Receiving the government issued stimulus cerfiticate.
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Vid. 2) Clyde opening his stimulus certificates.
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Show Links:

• Example voucher notes.
  
• Background of the stimulus plan.
  
• Bush tax stimulus results.
  
• Some analysis of fiscal stimulus from the Brookings Institution.

Bottom Line:

• Chinese consumers adjust to economic slowdowns quickly due to a tendency to save and economize.
  
• In view of the US Bush tax rebates, which seemed to have little direct spending impact, a new fiscal stimulus was sought.
  
• The Taiwan government issued a stimulus voucher to each adult in Taiwan (like a gift certificate).
• The total was 3600 each person--to be picked up in public distribution centers, and later at the post office.
• Local retailers offered sale prices that came close to the voucher amount.
• In Asia, economic innovation is creative and interesting.