The average people in Taiwan are not benefiting from AI boom. The scale of Taiwan’s economy is rapidly expanding, but the portion returned to workers has stagnated. Labor income share, which measures employee remuneration as a proportion of GDP, has failed to improve. Labor income share in Taiwan sat at 50% up until the 1990s, but then entered a state of gradual decline to bottom out at 43% in 2024.
2. How is this related to the sub
(1) K-shaped economy: AI boom failed to improve everyday Taiwanese life.
3. My opinion
Taiwan’s lack of organized labor helped boost its economy but undermine the workers’ share of the pie. TSMC is cutting workers’ bonus for more investment despite record high profit as they don’t have labor pressure but Korean chaebols have to deal with organized labor over the topics of automation and AI profit sharing.
This is reflected in workers’ wage too. Taiwanese workers’ wage is low compared to Japan & Korea despite having higher GDP per capita. This led to Taiwanese workers heading to mainland China for better pay.
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“Honey, it’s time for your *(insert developed country with advanced services economy and high education) is rich, so why do they feel poor* article!”
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1. Summary
The average people in Taiwan are not benefiting from AI boom. The scale of Taiwan’s economy is rapidly expanding, but the portion returned to workers has stagnated. Labor income share, which measures employee remuneration as a proportion of GDP, has failed to improve. Labor income share in Taiwan sat at 50% up until the 1990s, but then entered a state of gradual decline to bottom out at 43% in 2024.
2. How is this related to the sub
(1) K-shaped economy: AI boom failed to improve everyday Taiwanese life.
3. My opinion
Taiwan’s lack of organized labor helped boost its economy but undermine the workers’ share of the pie. TSMC is cutting workers’ bonus for more investment despite record high profit as they don’t have labor pressure but Korean chaebols have to deal with organized labor over the topics of automation and AI profit sharing.
This is reflected in workers’ wage too. Taiwanese workers’ wage is low compared to Japan & Korea despite having higher GDP per capita. This led to Taiwanese workers heading to mainland China for better pay.
“Honey, it’s time for your *(insert developed country with advanced services economy and high education) is rich, so why do they feel poor* article!”