Household Incomes stagnant

Statistics released this month by the Directorate-General of Budget, Accounting, and Statistics (DGBAS) show why the public is angry at "graft" in the Chen Administration. The President is the object of inchoate public ire because household incomes have remained stagnant over the last decade at least, and the gap between rich and poor is widening, though it has not yet reached US or Chinese proportions.

According to the report, average annual household income in 2005 was US$33,190, which represented a 0.7-percent increase over 2004. At 58.1 percent, the majority of family earnings derived from wages, with other significant sources including transfer receipts, business activities and property incomes.

The DGBAS statistics also revealed that average disposable household income amounted to US$ 27,453 in 2005, representing a year-on-year increase of 0.4 percent. When divided into five subgroups, the data showed that the top 20 percent, with an average of US$55,123, have incomes 6.04 times greater than the US$9,141-average of the bottom 20 percent, which represents a slight increase over the equivalent 2004 figure of 6.03.

This widening gap between rich and poor is in line with economic changes in countries around the world, said DGBAS Minister Hsu Jan-yau at a press briefing. Nevertheless, Hsu claimed the figures showed that government welfare policies--such as those targeting low-income households, the elderly, farmers, the sick, and victims of accidents and emergencies--had helped reduce the gap which, otherwise, could have been as high as 7.45 fold.

With regard to annual household expenses, the average figure of US$27,270 represents a growth of 1.4 percent. Consumption costs accounted for US$21,503, while non-consumption costs, such as payments for interest, taxes, fines, donations, weddings and funerals, totaled US$5,777, year-on-year increases of 1.2 and 2.3 percent, respectively.

One need only juxtapose the two sentences:

With regard to annual household expenses, the average figure of US$27,270 represents a growth of 1.4 percent.

The DGBAS statistics also revealed that average disposable household income amounted to US$ 27,453 in 2005, representing a year-on-year increase of 0.4 percent.

Cost grow 1.4%, while income lurches up a mere 0.4%, which is probably within the margin of error for the calculations. Stagnant income + rising expenses = political turmoil, simple as that.

[Taiwan] [US] [China] [Chen Shui-bian]