TAIPEI (TVBS News) — Taiwan's wealth gap continues to widen, with the latest data from the Directorate General of Budget (財政部預算司) revealing stark disparities. The 2021 household wealth distribution report, released in April this year, shows the wealth of the top 20% of households is now 66.9 times that of the bottom 20% — a dramatic increase from 16.8 times three decades ago.
According to the report, the average wealth per household in the top 20% is NT$51.33 million, while the bottom 20% hold just NT$770,000, accounting for less than 1% of the total wealth. This growing inequality is negatively impacting society and the economy.
Experts attribute Taiwan's widening wealth gap to a flawed tax system and rampant housing speculation. Hsin Ping-lung, an Associate Professor at National Taiwan University’s Graduate Institute of National Development, explains, "Money makes money. Wealthy individuals can accumulate wealth faster by investing in real estate, speculating in the housing market, or buying stocks, while lower-income individuals lack the resources to engage in such activities."
Hsin also highlighted the need for governmental action to tackle absolute poverty. "Even if luxury home prices are halved, many still cannot afford them. What people need is access to livable homes at reasonable prices," he said.
In contrast, Taiwan's economy has shown robust growth, according to the National Development Council (NDC). Over the past eight years, the country has experienced an average annual growth rate of 3.1%, surpassing Singapore, South Korea, and Hong Kong. Additionally, Taiwan's per capita GDP surpassed US$30,000 in 2020. Despite these economic achievements, the wealth disparity remains significant.
The widening wealth gap in Taiwan is alarming, as the rich get richer and the poor fall further behind. There is an urgent need for the government to develop strategies to elevate low-income households out of poverty.