Lee Jae-myung tells media misleading the public by quoting only part of disaster relief funds, "Use it properly"

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Lee Jae-myung, Governor of Gyeonggi Province, expressed deep regret over the media coverage that misleads the public by selectively quoting only parts of data.

On the 1st, Governor Lee expressed concern, saying, "Some media outlets, with the intention of downplaying the effect of disaster relief funds, are causing great confusion among the public by citing only parts of data from the Bank of Korea, a monetary policy institution."

He added, "The article is based on a Bank of Korea report stating that the 'fiscal multiplier' of government transfer payments is lower than that of 'government consumption' or 'government investment,' and reports as if disaster relief funds have no economic effect. However, a closer look at the report cited by the article reveals that the coverage is a case of fitting research results to a predetermined conclusion," he emphasized.

Governor Lee first pointed to the analysis period as a basis for this argument.

He said, "The time series analysis period of the report is from the end of 2011 to the first quarter of 2019, a period with no economic shock from COVID-19. Therefore, the report clearly states that 'there are limitations in directly reflecting economic structural changes due to the spread of COVID-19,' but this content is thoroughly excluded, and the effect of disaster relief funds is downplayed solely based on the low fiscal multiplier of 'transfer income,'" he pointed out.

He also criticized, "The media excluded the contribution effect of the disaster basic income in preventing global demand contraction from their articles. The report states, 'Under global demand shocks, government lifeline support to households and businesses can significantly contribute to mitigating the contraction of aggregate demand by alleviating additional financial-real transmission effects,' but reporting only parts of the content without mentioning this is tantamount to deceiving the public."

Furthermore, he said, "On the first page of the Bank of Korea report, it is stated, 'The content of this material does not represent the official view of the Bank of Korea but the personal views of the author. Therefore, when reporting or citing this material, the author's name must be clearly indicated.' Ignoring this and selectively extracting parts of the report to mislead the public as if it were the official opinion of the Bank of Korea is a media practice that must be avoided," he asserted.

Governor Lee explained, "Many economic experts hold the view that in extreme crisis situations like COVID-19, measures such as disaster relief funds, where the government directly connects the network, are the most effective. Moreover, since the fiscal multiplier of transfer payments is low because high-income groups do not use transfer payments, the multiplier effect of disaster relief funds paid in forms like local currency, which cannot be saved, can be greater," he explained.

He further warned, "COVID-19 has brought a painful reality incomparable to the 'global demand shock' assumed in the report. Many citizens are suffering from a tsunami-level shock never experienced before, and if we repeat the mistake of dithering over whether to select or universalize support, wasting unnecessary effort, the economic and psychological damage to our society will increase exponentially, and we may pay an enormous price."

In conclusion, Governor Lee said, "The media must stop the practice of selectively quoting parts of data that cause the public to have a wrong perception. I sincerely hope that the disaster basic income, an economic vaccine whose effectiveness was proven through the first payment, will be provided once again to bring relief to the suffering people."

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