The Early Economic Crisis

In the early days of the takeover, Taiwan experienced severe economic turmoil. The Nationalist government shipped massive quantities of Taiwan's resources to mainland China to support the civil war, causing skyrocketing prices and shortages of daily necessities on the island. Chen Yi's government implemented a command economy that monopolized major industries, and the monopoly bureau system provoked intense public resentment.

Hyperinflation wiped out Taiwanese savings overnight. Between 1946 and 1947, the price of rice surged dozens of times over, making it difficult for ordinary families to maintain basic living standards. Meanwhile, mainland officials and merchants arriving in Taiwan were accused of corruption and profiteering, further exacerbating ethnic tensions.

This volume uses economic data, folk accounts, and official documents to reconstruct how this economic collapse became a critical catalyst for the February 28 Incident.