User:Lee Jaeseong/Economic inequality in South Korea: Difference between revisions
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In 2014, the poverty gap ratio stood at 39 percent, ranking third overall among OECD countries. According to Wells X, the nation's top-tier 1390 people monopolize assets worth around 270 trillion won, comparable to the national budget.<ref>{{Cite web|title=[wide&deep] 지구촌 커지는 빈부격차… ‘잿빛 그늘’ 짙어지는 한국|url=https://news.naver.com/main/read.nhn?mode=LSD&mid=sec&oid=005&aid=0000660359&sid1=001|website=news.naver.com|language=ko|access-date=2020-04-26}}</ref> |
In 2014, the poverty gap ratio stood at 39 percent, ranking third overall among OECD countries. According to Wells X, the nation's top-tier 1390 people monopolize assets worth around 270 trillion won, comparable to the national budget.<ref>{{Cite web|title=[wide&deep] 지구촌 커지는 빈부격차… ‘잿빛 그늘’ 짙어지는 한국|url=https://news.naver.com/main/read.nhn?mode=LSD&mid=sec&oid=005&aid=0000660359&sid1=001|website=news.naver.com|language=ko|access-date=2020-04-26}}</ref> |
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In 2020, the Korona incident greatly increased Korea's OECD poverty rate.<ref>{{Cite web|title=OECD 빈곤율 2위 오명 한국… 코로나19 경제위기로 악화되나|url=https://news.naver.com/main/read.nhn?mode=LSD&mid=sec&oid=008&aid=0004424251&sid1=001|access-date=2020-06-19|website=news.naver.com|language=ko}}</ref> |
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[[File:불평등.JPG.jpg|thumb|2020 OECD Poverty Rate Rank. South Korea ranks second overall.]] |
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== Problem == |
== Problem == |
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=== Political populism === |
=== Political populism === |
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Middle and low-income people, who are unable to make ends meet immediately, sympathize with extremism and become mired in political unrest. In this case, there is a possibility of being swayed by populist policies, such as the National Revolutionary Dividend Party set up by [[Huh Kyung-young]] in 2020. In fact, many people were tempted and responded to the party's absurd story. |
Middle and low-income people, who are unable to make ends meet immediately, sympathize with extremism and become mired in political unrest. In this case, there is a possibility of being swayed by populist policies, such as the National Revolutionary Dividend Party set up by [[Huh Kyung-young]] in 2020. In fact, many people were tempted and responded to the party's absurd story. |
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=== Excessive competition for learning === |
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The larger the gap between the rich and the poor, the greater the competition between children's grades, and the same goes for Korea. In capitalist countries, children's sexual competition tends to be prioritized in order to overcome the economic gap. So is the trend of college admission in our country. |
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== Cause == |
== Cause == |
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=== The intensification of social competition === |
=== The intensification of social competition === |
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In the real economy, the imbalance of information results in reverse selection or moral hazard. The efficiency wage theory may be applied to solve the problems arising from this. Then, contrary to conventional wisdom, the phenomenon of "giving more to hardworking people than to work" occurs. It is easy to understand that there is a big difference in prize money even though the difference between first and second place is very small in a big competition. People who are confident of their own skills will prefer a competition with a big prize money because they think 'I can be number one.' It serves as a mechanism to drive out the uncompetitive and attract the competitive. In other words, in theory, the more strictly one considers who is good or bad, the more polarization can be intensified. For now, meritocracy is the clearest and most reasonable resource distribution standard in reality when there is no external pressure, so it is valid both in terms of efficiency and in terms of legitimacy. However, polarization is another matter. In other words, a legitimate society can be more polarized, and the oppositely unjust society can be called a more equal society. Simply saying that polarization is severe cannot determine that society is unjust or unjust. |
In the real economy, the imbalance of information results in reverse selection or moral hazard. The efficiency wage theory may be applied to solve the problems arising from this. Then, contrary to conventional wisdom, the phenomenon of "giving more to hardworking people than to work" occurs. It is easy to understand that there is a big difference in prize money even though the difference between first and second place is very small in a big competition. People who are confident of their own skills will prefer a competition with a big prize money because they think 'I can be number one.' It serves as a mechanism to drive out the uncompetitive and attract the competitive. In other words, in theory, the more strictly one considers who is good or bad, the more polarization can be intensified. For now, meritocracy is the clearest and most reasonable resource distribution standard in reality when there is no external pressure, so it is valid both in terms of efficiency and in terms of legitimacy. However, polarization is another matter. In other words, a legitimate society can be more polarized, and the oppositely unjust society can be called a more equal society. Simply saying that polarization is severe cannot determine that society is unjust or unjust. |
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=== Political inequality === |
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In his book The Great Leveler, Schaedel said that political inequality creates economic inequality.<ref>{{Cite web|last=지면보기|first=입력 2018 09 29 00:30 수정 2018 10 01 13:36 {{!}} 603호 16면|date=2018-09-29|title=정치적 불평등이 경제적 불평등을 조장한다|url=https://news.joins.com/article/23006012|access-date=2020-06-19|website=중앙일보|language=ko}}</ref> In the book, the author said, "As the nation has historically been formed, public power has been concentrated on a few people. In terms of hierarchy, it is a very sharp spire structure. These political inequalities have encouraged economic inequality," The Republic of Korea says that economic inequality has intensified since the 1990s as well as political inequality. |
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== References == |
== References == |
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Revision as of 12:28, 19 June 2020
 | This article needs additional citations for verification. (April 2020) |
Korea is a country with growing economic inequality. Low-income workers at 37.8 percent account for 8.47 percent, or 31 trillion won, of the total income. On the other hand, 1.7 percent or 32 trillion won accounts for 1.4 percent of workers earning more than 100 million won.[1]
Current situation
Only within the OECD, Korea is on a fairly good axis in terms of indicators such as the Gini coefficient, the Palma ratio and the gap in income mood, especially when limited to countries with a certain population. And it's actually pretty good when you look around the world.
But the problem is that polarization has not eased at the current level until 2018 after the IMF, and rather is becoming more and more serious.
In 2014, the poverty gap ratio stood at 39 percent, ranking third overall among OECD countries. According to Wells X, the nation's top-tier 1390 people monopolize assets worth around 270 trillion won, comparable to the national budget.[2]
In 2020, the Korona incident greatly increased Korea's OECD poverty rate.[3]
Problem
Economic polarization creates many problems. The establishment continues to build up their power, and the poor end up losing it.
Social anxiety weighting
With the majority of people in the low-income bracket and no hope of rising the class, they lose the will to work hard. In this society, gambling is easy to fall into, and this is an example of the bitcoin craze in 2017.[4]
Political populism
Middle and low-income people, who are unable to make ends meet immediately, sympathize with extremism and become mired in political unrest. In this case, there is a possibility of being swayed by populist policies, such as the National Revolutionary Dividend Party set up by Huh Kyung-young in 2020. In fact, many people were tempted and responded to the party's absurd story.
Excessive competition for learning
The larger the gap between the rich and the poor, the greater the competition between children's grades, and the same goes for Korea. In capitalist countries, children's sexual competition tends to be prioritized in order to overcome the economic gap. So is the trend of college admission in our country.
Cause
There are many causes for economic inequality, but the following causes are mainly talked about in Korea.
Foreign exchange crisis
Not only the financial crisis itself, but also the ensuing contraction in domestic investment and worsening overall employment conditions. A slump in the domestic economy and strengthening the nation's economic structure dependent on exports. Before the Asian financial crisis, local companies used to make lax investments, ironically these over-investments had a positive impact on employment.
The intensification of social competition
In the real economy, the imbalance of information results in reverse selection or moral hazard. The efficiency wage theory may be applied to solve the problems arising from this. Then, contrary to conventional wisdom, the phenomenon of "giving more to hardworking people than to work" occurs. It is easy to understand that there is a big difference in prize money even though the difference between first and second place is very small in a big competition. People who are confident of their own skills will prefer a competition with a big prize money because they think 'I can be number one.' It serves as a mechanism to drive out the uncompetitive and attract the competitive. In other words, in theory, the more strictly one considers who is good or bad, the more polarization can be intensified. For now, meritocracy is the clearest and most reasonable resource distribution standard in reality when there is no external pressure, so it is valid both in terms of efficiency and in terms of legitimacy. However, polarization is another matter. In other words, a legitimate society can be more polarized, and the oppositely unjust society can be called a more equal society. Simply saying that polarization is severe cannot determine that society is unjust or unjust.
Political inequality
In his book The Great Leveler, Schaedel said that political inequality creates economic inequality.[5] In the book, the author said, "As the nation has historically been formed, public power has been concentrated on a few people. In terms of hierarchy, it is a very sharp spire structure. These political inequalities have encouraged economic inequality," The Republic of Korea says that economic inequality has intensified since the 1990s as well as political inequality.
References
- ^ 하우맘. "연봉금액별 인구수 및 근로소득액". Daum블로그 (in Korean). Retrieved 2020-04-26.
- ^ "[wide&deep] 지구촌 커지는 빈부격차… '잿빛 그늘' 짙어지는 한국". news.naver.com (in Korean). Retrieved 2020-04-26.
- ^ "OECD 빈곤율 2위 오명 한국… 코로나19 경제위기로 악화되나". news.naver.com (in Korean). Retrieved 2020-06-19.
- ^ "[SNS돋보기] '일확천금' 비트코인 중독…"도박보다 무섭네"". news.naver.com (in Korean). Retrieved 2020-05-03.
- ^ 지면보기, 입력 2018 09 29 00:30 수정 2018 10 01 13:36 | 603호 16면 (2018-09-29). "정치적 불평등이 경제적 불평등을 조장한다". 중앙일보 (in Korean). Retrieved 2020-06-19.
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