COVID-19 is still spreading globally, but Taiwan has few confirmed cases, and the epidemic has gradually stabilized. Taiwan launches stimulus voucher, hoping that people will actively consume and promote economic development.
Taipei, Taiwan (Merxwire) - Merxwire received contributions from reader Mr. Logan Chen. Logan said that COVID-19 has affected human life. Many brick-and-mortar stores in Taiwan have closed down, employees have been laid off, and companies have also been hit. Governments all over the world have launched cash Relief Packages, but Taiwan launching stimulus voucher. Everyone is looking forward to positive economic benefits. However, there are also some chaos in Taiwans current policy. For example, the policy needs to first spend NT$1,000 to purchase stimulus voucher worth NT$3,000, which makes the public feel too complicated.
Benefits of stimulus voucher
Consumers have already paid out NT$1,000, plus NT$2,000 provided by the policy, and the total value of stimulus voucher worth NT$3,000 must be used up before 12/31. Many amusement parks and department stores have launched preferential activities, hoping to promote more consumption power.
Why not give out cash? Because cash will enter the bank, or to pay electricity or water bills, or to pay taxes, it cannot really create consumer interaction in the market. In the past, physical economic activities were restricted by COVID-19, so what is needed most now is to create physical consumption so that economic activities that were shut down can be ignited again.
By purchasing stimulus voucher on your own, you can encourage people to spend, and in conjunction with market competition to strengthen the policy effect. This is one of the theories of Keynesian economics, during an economic depression, the government can hire a group of people to dig a hole and another group of people to fill the hole.
Stimulus voucher's social disorder
Stimulus voucher was ridiculed by the public, and it was regarded as the least amount of relief in the world, and the delivery method was complicated, stimulation effect was minimal. For relief packages in various countries in the world, the United Kingdom provides about 91,000 Taiwan dollars, the United States provides about 36,000 Taiwan dollars, Hong Kong provides about 38,000 Taiwan dollars, and Japan provides about 28,000 Taiwan dollars.
The stimulus voucher launched in Taiwan can use physical coupons, credit cards, or electronic payment. Although there are many ways to use it, there are also many specifications that are not easy for the public to understand. For the credit card part, because each bank offers different discounts, 80% of the people currently choose to pick up paper coupons at supermarkets or post offices, resulting in increased workload for employees at supermarkets and post offices.
In addition, many people on the Internet are doing illegal transactions, especially private societies. It is more difficult to prevent. The original policy was to allow people to consume stimulus voucher and promote economic activities. Once people privately exchange stimulus voucher into cash, it will Affect economic growth.
People expect economic growth
Bank credit cards have launched discounts, and department stores and supermarkets have also launched discounts. With the support of stores, people can have a higher willingness to spend.
People can travel domestically during the summer vacation and use stimulus voucher to buy gifts or accommodations. In conjunction with the preferential activities launched by the industry, they can multiply the consumption effect and help the tourism industry who has suffered the most from COVID-19.
The use date of stimulus voucher is 2020/7/15~2020/12/31. At present, the performance of amusement parks and department stores has begun to increase, and everyone is continuing to pay attention to economic changes. The people of Taiwan also look forward to the emergence of vaccines as soon as possible, so that society can return to normal operations, and countries around the world can resume commercial trade and good interaction.
Contribution of reader Mr. Logan Chen.