Sidae Jeonhwan's Jo Jeonghun: "If Public Servants' Wages Are Linked to Unemployment Rate... Stability Detached from the People Is Problematic"
Claim to Cut Civil Servant Salaries to Fund Disaster Relief
Deputy Prime Minister Hong Nam-ki Criticized for "Exposing State Bureaucracy Mindset"
[Asia Economy Reporter Park Cheol-eung] "When the lives of taxpayers are this difficult, it is necessary to seriously consider the criticism that those who receive taxes live relatively stable lives. If wages are cut as a form of shared sacrifice, wouldn't that create a sense of tension as well?"
Jo Jeong-hoon, a member of the Transition Era Party advocating for the introduction of a basic income system, recently became the center of attention again by proposing disaster relief payments through wage cuts in the public sector. In an interview with Asia Economy on the 1st, he made a bold suggestion that "it is necessary to link public officials' salaries to unemployment rates or economic growth rates." He expressed concern that public sector workers should not enjoy stability disconnected from the lives of the people.
Jo said, "This year, the growth rate could fall to the minus (-) 2% range, so if linked, public officials' wages should be reduced. If a kind of performance-based pay is introduced, responsibility and tension will increase," adding, "Even lower-level public officials should share the pain."
He regards "closing the gap" as a task of the times. He believes that in the current situation, the public sector should play a pioneering role. Jo stated, "The lives of those who receive salaries while working from home and those whose sales have plummeted due to extensive remote work are completely different. We need to recognize that the level of suffering is different," and added, "To close this gap, the public sector must take the lead."
He calls for shared sacrifice not only from public officials but also from all public institutions, including public agencies and public enterprises. Even some ruling party members have responded that "it could be one way."
Jo said, "Since it is an emergency situation now, we need to boldly and quickly pour water on the fire," and added, "If the funds come from issuing government bonds, the public sector wage cuts could be used to repay the bonds a few months later."
Of course, the National Assembly is no exception. He emphasized the need for voluntary partial salary returns from all political parties. Jo recently announced on Facebook, "I will share my salary until the end of the year to support those struggling due to COVID-19."
He believes that not only the second disaster relief payment but also the introduction of basic income should be accelerated. Jo said, "Korea has almost no gap between pre-tax and post-tax income, and among OECD countries, it has the lowest level of income gap reduction through fiscal policy," emphasizing, "Basic income means a shift to universal welfare, not selective aid. It should be seen as a right, not charity." It is not a concept of appealing or pleading to the state.
Jo said, "Most people acknowledge the domestic demand stimulation effect of the first disaster relief payment," and added, "We should institutionalize quarterly basic income payments based on this opportunity. It can be done by methods such as income deductions or consolidating scattered welfare policies."
He continued, "The idea that the crisis can be overcome with existing policies is failing to read the rapidly changing times. Even the United States has provided support payments," proposing to open an era where all citizens receive a kind of bonus from the state.
He strongly criticized Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki's so-called "immature" remark toward Gyeonggi Province Governor Lee Jae-myung. Jo said, "Agreeing that an elected Gyeonggi governor is 'immature' reflects the bureaucrat's mindset," adding, "It seems to be a state-centric bureaucratic way of thinking. While it is possible to discuss policy, mixing emotions shows confusion about one's position."
Regarding the real estate issue, he made a bold proposal that the public sector should purchase existing urban housing and supply it as rental housing. Jo said, "Since there is no more land to build housing in urban areas, the only option is to purchase existing houses," and gave an example, "For instance, the state could buy 30% of Eonma Apartments and Hyundai Apartments in Gangnam and rent them out at a 1% interest rate."
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He also mentioned, "It is important for the government to send a clear signal about how much it intends to lower real estate prices."
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