'J-nomics Architect' Kim Kwang-doo: "Since Moon Government, Public Life Satisfaction and Happiness Have Declined"

Kim Kwang-doo, Vice Chairman of the National Economic Advisory Council, is delivering the opening address at the 2018 National Economic International Conference held on the 28th at Shilla Hotel in Jung-gu, Seoul, under the theme "Economic Paradigm Shift: People-Centered Economy." Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporters Lee Ji-eun and Kim Hye-min] Kim Kwang-doo, director of the National Future Research Institute and the architect of the Moon Jae-in administration's economic policy 'J-nomics,' criticized the government, saying, "Since the Moon Jae-in administration, the public's life satisfaction and happiness have declined."

On the afternoon of the 17th, at the 'Towards a Better World' forum held in Mapo-gu, Seoul, Director Kim stated, "Both subjective surveys and objective statistics show that life satisfaction and happiness have decreased since the Moon administration," during his lecture. The forum, led by former Saenuri Party leader Kim Moo-sung, saw the participation of numerous current and former lawmakers including Kim Sung-tae, Hwang Young-cheol, Park Soon-ja, Hong Il-pyo, Yeom Dong-ryeol, Park Sung-joong, and Jung Tae-ok.

As evidence for his claims, he cited the happiness index from the National Future Research Institute and survey results from Seoul National University's Happiness Research Center. Director Kim explained, "The National Future Research Institute's happiness index, which includes 'how safe people feel,' has continuously declined since the start of the Moon administration," and added, "According to a survey conducted by Seoul National University's Happiness Research Center on 350,000 people, life satisfaction among the public dropped further last year compared to 2018."

He also criticized the Moon administration's flagship economic policy, income-led growth. Director Kim said, "Several aspects of income-led growth were implemented at a pace and intensity that the market could not absorb, causing many small and medium-sized enterprises to lose strength and go bankrupt," and pointed out, "While I agree with the intention to alleviate polarization and protect the vulnerable, the methodology was pursued with too short a timeframe."

He continued, "Since over 80% of our national income depends on trade, raising the minimum wage rapidly and reducing working hours so quickly affects competitiveness," adding, "As time passes, our products sell less, and maintaining jobs becomes difficult. The fact that many companies are not actively investing reflects this challenging business environment."

In this context, he viewed that the government's role would expand as the economy worsens due to the COVID-19 pandemic. Director Kim stated, "The COVID-19 outbreak has contracted supply and demand, increased unemployment, and pushed corporate insolvency to a serious level," and added, "Globally, governments' roles have expanded, and ruling parties in many countries have seen increased support from their leaders; I think President Moon has also benefited from this."

He predicted that if COVID-19 prolongs, wage adjustment issues might arise. Director Kim said, "Companies are being asked to maintain employment, but the question is how much they can do," and added, "When the whole society reaches a point to share the pain, wage adjustment issues will surface. Eventually, there will be talks about maintaining employment in exchange for wage adjustments."

He also expressed concerns about the increase in national debt. Director Kim said, "Before the presidential election, many welfare programs are likely to be introduced. Some propose giving 200,000 won per person, and next year, there might be calls for 500,000 won," adding, "If this happens, the national debt ratio could exceed 50% of GDP, and there are rumors in the hedge fund industry that this could lead to collapse. National creditworthiness could also be shaken."

Regarding the 'Korean New Deal,' he suggested the possibility of a long-term decrease in private investment. He said, "The New Deal concept is widely used now, but the reason Roosevelt's New Deal failed was that private investment significantly declined after 1935 due to government-led policies," and added, "I think Korea will follow a similar path where the government does too much, suppresses businesses, and strengthens labor unions during the New Deal process."

This content was produced with the assistance of AI translation services.