People's Party: "Universal Disaster Relief Payments Are 'Populism'... Should Be Distributed Selectively"

"This Year Already Three Supplementary Budgets... National Finances Running Dry"

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] On the 25th, the People’s Party stated regarding the disaster relief payments, “While the first round of disaster relief payments distributed to all citizens was a measure considering the national economy plunged into a short-term shock due to the unprecedented virus crisis, the second round of disaster relief payments should focus on selective distribution limited to citizens facing greater needs and crises, taking into account the prolonged COVID-19 pandemic and national finances,” adding, “It must be distributed selectively under the principle of efficiency.”

Hong Kyung-hee, the senior deputy spokesperson of the People’s Party, said in a commentary on the same day, “The fuss made by Governor Lee Jae-myung of Gyeonggi Province and Democratic Party figures, who emphasize that disaster relief payments are economic policies and insist on indiscriminate distribution to all citizens, is a manifestation of ignorance,” and added, “The fact that government transfer expenditures such as disaster relief payments and subsidies have minimal impact on the fiscal multiplier is a consensus among almost all economists, and various research results prove this.”

Senior Deputy Spokesperson Hong pointed out, “Their claim that disaster relief payments will stimulate consumption and eventually increase tax revenue is a deceptive argument that blinds the public’s eyes and ears, and is merely a confirmation bias reflecting their hopeful wishes expressed in words,” and added, “Moreover, isn’t it the case that even Hong Nam-ki, the Deputy Prime Minister and Minister of Economy and Finance, has expressed the opinion that payments to all citizens are difficult?”

Senior Deputy Spokesperson Hong said, “Already this year, supplementary budgets have been prepared three times, depleting national finances,” and added, “Furthermore, with the fourth supplementary budget inevitable due to flood damage caused by heavy rains, distributing disaster relief payments again to all citizens is a misguided populist policy that increases national debt and imposes a heavy burden on future generations.”

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