Comments: Truckers’ strike displays South Korea government needs to focus on individuals more than corporations

Within a late-night deal, the particular truckers and the govt achieved an agreement to end the hit by extending a method that guaranteed minimal freight rates. The particular strike caused an estimated US$1. 2 billion dollars in losses in under one week, according to the Ministry of Trade, Industry and Energy.

TRICKLE-DOWN ECONOMICS AMID RECORD PUMPIING?

Shortly thereafter, new President Yoon Suk-yeol put forth his vision for their economic policy, a vital pillar of which is a cut to the corporate tax rate. Decrease corporate taxes plus less regulation will certainly lead to more hiring and higher development, Yoon said.

This perception in trickle-down economics has not garnered a lot support on the ground. Studies suggest that previous tax cuts in South Korea had the result of worsening inequality, by allowing prosperity to accumulate at the top of the particular economy without much creation of quality tasks.

An increasing consensus in Southern Korea thinks the fact that government ought to perform a more active part in assisting the particular members of community who aren’t capable to prosper in the modern, hyper-competitive economy.

Kyunghee University or college Professor Kim Man-kwon argued in a recent column that when assessing the truckers’ actions, it is important to consider that will throughout the economic slowdown exacerbated by the outbreak, many large companies saw their prospects rise.

“Ironically, it is the essential workers who were burdened the most, ” Kim wrote, adding that such workers are usually vulnerable due to the lack of a robust social safety net.

South Korea spends a tiny 12 per cent of gross domestic product on social well being, far below the common for wealthy nations. And things are getting tighter for households, as consumer inflation hit a 13-year high in May and is projected to surge more.

On the ground, many citizens worry that Yoon’s administration won’t have the ability to improve things. The poll conducted within mid-June found 53 per cent of respondents saying they anticipate the economy in order to worsen and only 18 per cent saying these people expect things to improve.