Why Taiwan Is So Rich

Why is Taiwan one of the richest countries in the word? And why is China so much poorer by comparison?
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Host: / nickfreitasva

[@firstcynic92]

The Taiwanese people figured out they needed to make something that the world needed desperately. Computer chips.

[@SP95]

Once the world starts producing their own chips and components once again I wish best of luck to that Island.

[@wjdyr6261]

The USA outsourced production to set Taiwan 🇹🇼 up for this.

[@mrbaab5932]

By subsiding that industry the same way Japan has done since the 1980's and the government working ⚒ with industry to drive foreign competitors out of the industry.

[@xpusostomos]

​@@SP95the world does make chips also, but the Taiwanese are great at it. Look, Taiwan has always been a manufacturing powerhouse, if they weren't making chips, there'd still be making bank on something

[@SP95]

Yeah, best of luck on leading the next gold rush

[@pattube]

Capitalism aka the free market economy. The free markets enrich the vast majority of people and lift up the poor. I'm not talking about crony capitalism which is a corruption of capitalism, or of state controlled capitalism like in China (after all if the CCP gives, then the CCP can take away too), but I'm talking about genuine capitalism aka the free markets.

[@SP95]

" Capitalism " is a conspiracy theory, better stick to the " Free market " denomination instead.

[@Brabbs]

Most people would bundle all of these forms of capitalism and demonize it. Free market beats crony, state controlled capital and also communism and marxism any day

[@davidjones8942]

Crony capitalism like here in America.... 😞

[@Reinhard_Erlik]

@@davidjones8942 That is a whole another problem, not a fundamental flaw in the system.

[@Dennis-yc3eb]

These shorts are always well done and fun to watch. Very educational. Taiwan and Singapore have a lot of the same ingredients in their formulas.

[@randymiller2460]

North Korea vs South Korea. East Germany vs West Germany. China vs Taiwan. Venezuela before socialism vs Venezuela after the takeover of socialism. The Soviet Union vs the United States. Eastern Block Europe vs Western Europe (cold war era). More open and free societies with less centralized bureaucratic control of the economy usually fare better than the alternatives.

[@krishthakar6661]

nope , less centralized economies create more class difference authoritarians provide less class difference

[@randymiller2460]

@@krishthakar6661 Yes equal indeed. Everyone is equally poor and oppressed, except for the elites that run the country.

[@krishthakar6661]

@@randymiller2460 Yes! Imagine blaming the government for your failure in life ,thats good

[@randymiller2460]

@@krishthakar6661 it was those terrible governments that made it impossible for people to succeed or even lead decent lives. Every single one of them were abject failures and human rights violators. How anyone can possibly still defend that evil is beyond reason.

[@randymiller2460]

@@krishthakar6661 It was those governments that prevented their citizens from ever being successful or even leading decent lives. Every single one of the many communist governments in history has been an abject failure. They have been the greatest violators of human rights in recent history. And before you start pointing at Nazi Germany as being "right wing" and trying to associate them with conservatives and Republicans in the US, remember that the Nazis were socialists. They were about the furthest opposite of a democratically elected representative republic form of government as you could get.

[@pmchamlee]

You nailed it, Nick! Spent a lot of time there [USAF Chinese interpreter and Civie in business] Great place, great folks, and great memories.

[@clips7701]

Why does this channel have only 40k subs??! Deserves a mil MINIMUM

[@trs8696]

it is a great channel, this dude's videos are fantastic. i know a lot about israel/palestine and he nails that topic so well. it makes me trust him a lot more about the things i don't know about.

[@Pan_Z]

Who would've thought that replicating Western economic systems, which have the best record of reducing poverty, leading to technological advancements, and improving living standards, would be superior to Communism?

[@jumperpoint]

Mainland China "advances" by stealing intellectual property.

[@djsngolossy6237]

To be fair communism is also an economic system of western origin.

[@jumperpoint]

@@djsngolossy6237 See, I told you they steal IP.

[@silverhawkscape2677]

​@@djsngolossy6237 A Failed one.

[@djsngolossy6237]

​@@silverhawkscape2677I agree

[@Talaria567]

Sounds like China is fairly similar to the US as of recent…

[@rogergonzalez362]

Democrat party and the CCP are the same in many ways.

[@naamadossantossilva4736]

The USA needs to get much worse to look like China.

[@JazzJackrabbit]

The Communists claim that the Chinese are not ready for liberty. Taiwan would beg to differ.

[@randallsteiger4860]

Great message. Keep up the good fight

[@kevinweng3964]

我是台灣人🇹🇼 IM FROM TAIWAN

[@stevenjames1138]

Well said! I lived in Taiwan for three years and China for eleven. As good as Taiwan is they would be even better if they weren’t being strangled and bullied by China. ICYMI, China insists other countries follow their so-called “one China policy” which means that Taiwan struggles to create any trade pacts with other countries. Also, China does its best to force Taiwan to rely on China economically. In this way, they still hope to coerce the Taiwanese people to join the mainland. The carrot is potential economic benefits, while the stick is potential military invasion.

[@dreadcthulhu5]

Yeah, this seems to explain the things I've been hearing about what's going on between those two.

[@justinvanburen8259]

Another great video!!! Great info, thank you!!

[@schwedr]

Very well said 👍

[@mikslids7083]

Taiwan's Success Story Taiwan is a fully democratic, free, and equal country. The president is directly elected by the people, and the president appoints the premier to lead the heads of various ministries and departments to be responsible to the Congress. The heads of government departments must be experts in their respective fields, and the ministers do not have to be high-ranking members of the winning party from the election. The heads responsible for Taiwan's economic planning are all technology experts. Because Taiwan lacks natural resources, Taiwan has long relied on industrial production and export trade to exchange resources with foreign countries, and has managed to maintain economic growth every year. The manufacturing sector accounts for more than 37% of Taiwan's GDP, the highest proportion in Asia. More than 65% of Taiwan's universities are focused on science and engineering, with only 35% focused on social sciences. Taiwan's economy, industry, and technology have long been planned by experts who are responsible to the Premier. Taiwanese law stipulates that the chairman and general manager of any enterprise in which the government owns more than 50% of the shares must attend the Congress to accept supervision and criticism. Therefore, the government has tried to sell off its shares in state-owned enterprises and reduce its holdings, allowing them to become listed companies and subject to the supervision of the general public who buy their shares. The long-standing policy of the Taiwanese government has been to invest in science, technology, and education. The aim is to "give the people fishing rods and teach them how to fish, rather than catch fish for them." Therefore, the Taiwanese government invests in three major areas: * The Academia Sinica, which focuses on basic scientific research * The Industrial Technology Research Institute, which focuses on research in various technologies and engineering * The National Chung-Shan Institute of Science and Technology, which focuses on the research and development of military technology and equipment These three institutions each have tens of thousands of professionals conducting research. Under these three areas, many large private companies and small and medium-sized enterprises in the supply chain have been cultivated. Any company in Taiwan can seek free cooperation with these three institutions to research various technologies. The research results are provided free of charge or for a very low technology transfer fee to private companies. Many of Taiwan's new technology companies were also founded by independent departments of these three institutions. The Taiwanese government allocates a fixed budget each year to invest in various institutions in the industrial, commercial, service, medical, and social care sectors. This is to support entrepreneurship among young people, middle-aged people, and retirees, and to provide training and low-interest loans for start-up capital. The Taiwanese government also allocates a budget to promote the transformation of small and medium-sized manufacturing enterprises into smart manufacturing and energy saving and carbon reduction. This is undertaken by large telecommunications and information companies and professional energy saving and carbon reduction consulting companies. They provide guidance and planning for small and medium-sized enterprises, and help them apply to government agencies for subsidies for transformation and upgrading projects. The government's subsidy for upgrading projects can be up to 50% of the total project cost. In essence, the Taiwanese government invests in and supports the growth of private enterprises. When these enterprises make a profit, the government collects 20% of their profits in taxes. This creates a virtuous cycle, which is why Taiwan's industry and commerce are so prosperous. The country is competitive and the people are prosperous. This is Taiwan's strategy for success.

[@trs8696]

I actually think you have to go back BEFORE the Chinese Revolution. The Japanese occupation of Taiwan had a huge influence on Taiwan's appreciation for technology and industrialisation. It was, dare I say it, an example of the potential benefits of colonisation. Of course, none of that negates the excesses and cruelties of the Japanese during that period. But there were certainly upsides to the Japanese presence.

[@PoussinNoNeko]

In the end, majority of Taiwanese families who lived under Japanese rule have a good impression of Japan. They do understand that Japan was one big reason why the country is so successful now: because of the education and the infrastructures provided by Japan. They wanted to make Taiwan a Japanese industrial powerhouse.

[@JMK948]

@@PoussinNoNeko So basically screw China and hail Japan?

[@jonathansmith6011]

Stationed on Taiwan for a year and a half. Wonderful people. Still have a bag of NT!

[@notme3184]

Aside from not being communist, the biggest reason why Taiwan is so wealthy is TSMC. The largest company youve never heard of

[@charleshamilton9274]

Taiwan’s progressive and impressive recognition and acceptance of gay/lesbian rights and protections make it a clearly better place for me.

[@shivaramkumar6294]

But I still don't understand what makes Taiwan concretely speaking more richer than China. I agree that free markets and proper government institutions can make great differences, but how is Taiwan able to be so rich? Just from the numbers alone I was left astonished... Is it the semiconductor industry? Are a lot of the Taiwanese engineers? Is their economy supported by exports?

[@timbradshaw5481]

The same happened with singapor, a country with no resources is one of the most economically successful countries. And I think the conclusion being putforward is that trust is the resource that makes countries rich. Being unable to trust buyers and workers, sellers etc mean's that cooperation can't occur and so physical resources amount to nothing when they are unable to be utilised. I like in China and although crime is very low, and people can leave bike helmets on their bikes without it being stolen, I think you are much more likely here than in the UK, for example, to be scammed. Also they care more here about appearances than substance, so the quality of everything is lower. If you go to the hospital, even the receptionists wear white coats like doctors.

[@jumperpoint]

A huge population requires a huge amount of food and energy. And most of that population is living at least 100 years in the past in terms of education and access to technology.

[@timbradshaw5481]

China's education isn't that bad. They out performthe western countries in maths, and they have a literacy rate of over 99%. Their technology is often better than in the UK, for example I think their version of apple pay was used earlier and more widespread. Deliveries often arrive within 1-2 days, thing's get built here far quicker than in the UK. I think in the cities (not just beijing and shanghai), the technology is often on par with the west and things get done quicker here. The trains in China are far better and cheaper than the UK too. So I don't think that is the reason at all.

[@jumperpoint]

@@timbradshaw5481What happens in the rural areas makes my point. And things getting built faster has more to do with a lack of regulation and concern for safety standards. Look at what's happening with tofu bridges to see how that can be a problem. Faster isn't the gold standard. Haven't you ever heard about someone with a need being told "You can have it fast, cheap, and functional. Pick any two."?

[@timbradshaw5481]

@@jumperpoint The reason it is so fast is because of the far bigger workforce. If you have a bigger workforce you can build faster and cheaply. China makes enough food for a population boom. The reason their population is falling now is not because of food shortages. Also the Chinese are not suffering from a lack of food or energy. The electricity here is very reliable. The education in China is not 100 years in the past. I think you just don't know what you're talking about.

[@jumperpoint]

@@timbradshaw5481 A bigger workforce helps if you're training people to do factory jobs. But some things don't scale. You can't just train more scientists and engineers. Those positions require more than just a degree to be successful. Ditto for anyone else doing research or design work. China can't train those positions as effectively which is why so many Chinese students study abroad. Big projects don't get done any faster with more money or more labor except to the extent that you can incentize people familiar with the project to work more hours. Infrastructure doesn't scale well. You can't send a bunch of work teams out to build 5 miles of road and expect all those roads to seamlessly become one superhighway. Food production does scale because production is distributed, processing is centralized, and consumption is redistribute. Growing crops and cooking can be performed with lower skilled labor if you're willing to accept waste and lower quality too. That and ignore more than basic food safety. Every step you add creates a job and every 5 jobs you add probably creates the need for an overseer. You end up needing a constantly expanding population to support basic economic growth. And, the more people working on a project the more shortcuts that get take. Usually resulting in costly mistakes. See the Three Gorges Dam if you want an example. And no one said that there weren't some rural areas with electricity, that technology has been around more than 100 years. .Just that cities are where most of the resources go because the greatest concentrations of economically and educationally successful people have traditionally lived in the cities in China.

[@shavenyak1]

"Political elite that is more concerned with holding onto power than the well being of it's citizenry." Where have I seen this idea before... 🤔

[@smcyfs9477]

Because they joined the free Western world economically.

[@tridelltransportation3603]

We feel more like China these days than Taiwan

[@aiedle007]

Nick Frietas, I really wish you were capable of being an NC representative. I would feel that you would make an amazing president if we didn't have a governmental structure that mostly hamstrings the president, not that I really want that to change in case a president that I do not agree with holds office.

[@hugocheng6243]

Who stole my money?😢

[@bigjimtenbillion]

Semi conductors

[@cairnex4473]

...and TSMC!

[@NightfireOP]

Taiwan also enjoys a byproduct of their homogenous culture and values: low crime Taiwan’s crime rate is lower than even democrat-runners cities here in the states

[@tctyt]

@@RajeshBhavnani Commies* continue to learn the wrong lessons.

[@consco3667]

Agree with Taiwan being Homogenous and agree with property rights. Look at Japan. Low crime rate, homogenous in the extreme

[@consco3667]

@sparrangle was there on a project in 92-93. Trust me. It is homogenous to the extreme. Look it up even.

[@leeshackelford7517]

Well, from 1994 to about 2005, domestic abuse was either totally ignored... or noticed but not acted on. So, not all the stats on "crime rate" are accurate. And yes, I was there, doing my part to stop domestic abuse. In 1994, even though against the law, a man could beat his wife to anything short of death. This could be done on streets, even directly in front of a police station...and the officers on the steps, would ignore it. Here is 1 story, my personal experience, 1996. I'm walking in Beitou, Taiwan. I hear yelling, blows and crying across the street from the Police Station. I was about 100 meters away, on the Police Station side. I crossed, came from behind, and suckerpunched the man 3 times. Yanked his arm as far up behind his back as I could...and told him I'd break it if he struggled...and I'd release him when he calmed down. I then called out to the police across the street. They ignored me . I started cussing at them in English and Chinese. Still ignored. Then I started telling passersby why I was pinning the guy to the ground and how useless the police had been. It was only after me publicly shaming them, that they came over and then I let the guy up. The police enforced no laws (there were laws on the books then making domestic violence a crime, but never enforce). The man and woman were both there....I offered to sit between them while they both talked. I called my fiance, and told her all was OK and I'd go see her at her mother's house later. Her reply was, "you doing that again?" I think I was there 3 hours (somewhere in the three hours I took a short break and bought 3 milk teas). We three became friends, and I saw the couple many times during my 18 months in Beitou...even a few meals together. I guess I ended up suckerpunching over a dozen men in that 18 month period. And only twice, after letting the guy up, did he decide to trade blows. (I'm 5'9" and was only 62kg, but was willing to take off my glasses and swing away....I got a couple of scars.....but for a good cause) Taiwan, now very strictly enforces domestic violence laws....and I'm glad I did my part in my neighborhood in Beitou. (My later feud with the police in Linkou, about their illegally parking and me actually laying on the hood and windshields of police cars is another fun story....but eventually, after a year of effort, enough neighbors stood up and made the police obey laws, too. My then-wife was originally very worried, me going against the police.....but, they actually could not do much...a story to a newspaper would have meant transfers ....and Linkou was a cushy job)

[@xpusostomos]

Japan, Taiwan, South Korea.. near perfect states

[@user-zp7jp1vk2i]

Taiwan, and Japan, took advantage for decades and decades as preferred nation clients with the USA;, the largest consumer economy at the time. By 1980 Taiwan merchants were able to offload their dirty industry to mainland China, who couldn't really say no at the time. then Taiwanese grabbed second/third homes and bailed to Canada, grabbing that 2nd. Passport, just in case they needed to be outta Dodge. Letters of Credit built the nation, but you have to have a consumer with KASH to deliver your goods to, and the USA was the consumer.

[@stevel6220]

Capitalism vs Communism

[@ctreid87]

Beard Wednesday!

[@adrianfisher3349]

From what I've read, the CCP spends at least as much on internal suppression and preventing themselves being overthrow as they do on their outward facing military. That has a cost to the people as well.

[@M_Jono]

I am Indonesian I travel alot to China and Taiwan for bussiness. And I LOL to this video 😂😂😂😂

[@tariizm1500]

why?

[@nunyabeezwax1413]

California or China?? I’m confused

[@nunyabidness3075]

But hey, the Chinese have more equity and diversity, and that’s what counts.

[@wampastompastomp]

this video didn't really say anything other than "freedums!"

[@OscarSchneegans]

As little Kamala said: fweedom.

[@nickg0411]

well i am sure it helps that they, like most of the western world ( yes they are in the east) dont pay a dime in defense costs...thats on the us tax payer backs....and it shouldnt be at this point

[@binedstudiostotalgame787]

some day i want to move to taiwan to build a fresh life from Canada witch has robbed the people there future but this video is very interesting

[@trevorjones1801]

I think alot of the benefits u state that china has would also be hindrances.

[@patrobbromccreanor820]

Anyone looked to see what happen 2 4 24. hope the chip factory is Ok.

[@vivianwong4376]

Don’t confuse people. Taiwan is not a country. All information are false

[@GoodDay4UnMe]

Taiwan is Taiwan, not evil china Both of them are different country.

[@Giguere2011]

Looking at per capita skews against any country with large populations. Of course Taiwan will look increadible compared to any of the top 20 population countries in the world.

[@kitcarson1697]

What about Taiwan's massive inflation?

[@xpusostomos]

3% is massive???

[@kitcarson1697]

@@xpusostomos one Taiwan dollar gets you a little over three US pennies.

[@xpusostomos]

@@kitcarson1697 5 years ago, it also bought 3 US pennies. What would your point be?

[@kilik1532]

Massive? 😂 Come to Ireland I will show you what is massive inflation

[@GoodDay4UnMe]

@@kitcarson1697 whats your point?

[@idkidk-rx6ut]

This is overall true but you need to remember recent chinese events. China has recently made incredible discoveries and created a system that I would almost bet you no other country could make. Yes. Taiwan is richer per capita but China has recently become a lot more advanced and will very soon overtake Taiwan in advancement

[@GoodDay4UnMe]

china....kerkerker...depression

[@PGHEngineer]

Taiwan is rich because like Japan and South Korea. West Germany Hing Kong Singapore these places were in the front line against Communism and quietly propped up by the West.

[@onlywei]

This oversimplification is so extreme that it has crossed into propaganda territory.

[@marcuschen786]

I live in Taiwan and think Taiwan is poor

[@waterlily2839_chua]

Coz you are communist

[@user-lr8zd6yl8m]

Why compare,Tawain is a provience of China.Tawain should be compared with its sister provience like Guangdong.

[@highlander12072002]

比年輕人的失業率嗎？？？？中國政府快公佈啊？（笑

[@GoodDay4UnMe]

hahaha.... Taiwan is Taiwan, not evil china, different country.

[@oddoutdoors]

Ok, so we need to define rich. What do you mean by rich? If you mean a hight gdp then yeah, they're rich. But if you mean wealth distribution, thats an entirely different story. The usa is the richest country in the world but we have millions of people dying of starvation. One mans rich means everyone elses poor

[@yu-hsianglien4228]

What are you trying to say? Do you wanna say that China or other communist countries have a better distribution of wealth compared to free countries like the US, TW, and JP?

[@oddoutdoors]

@@yu-hsianglien4228 nope, I'm saying exactly what I said. Read it again.