Yoon Hee-sook: "A Government That Thinks of Boosting the Economy by Pouring in Finances Is a Government Without the Ability to Increase GDP"

[Asia Economy Reporter Lee Ji-eun] Yoon Hee-sook, a member of the People Power Party, refuted the ruling party's logic by stating, "If the government thinks it can revive the economy by pouring in finances, it means it already lacks the ability to increase the denominator (Gross Domestic Product, GDP)."

On the 8th, Yoon said on Facebook, "If a government is truly confident in economic growth, it would devise excellent policies that can invigorate the economy."

He emphasized, "On the first day of the National Assembly audit at the Planning and Finance Committee yesterday, ruling party members expressed aversion to the very term 'fiscal rules,' arguing that 'since the national debt ratio is debt divided by GDP, increasing GDP lowers the ratio, so it is okay to spend a lot of finances.'"

Yoon pointed out, "Using the logic that populists worldwide have frequently used since President Per?n in the 1950s to justify reckless fiscal management in the world's fastest aging country in the 21st century is nonsense. The idea that increasing the denominator means the overall ratio does not increase even if the numerator increases is always true but meaningless."

He said, "The problem is that no administration that has poured finances like this has ever succeeded in history. If a government thinks it can revive the economy by pouring in finances, it shows that it already lacks the ability to increase the denominator."

He noted, "Since the start of economic development in the 1960s, the private sector's contribution to economic growth has overwhelmingly exceeded the government's contribution, but under the Moon Jae-in administration, from 2019 before COVID-19, this reversed to a 2 to 8 ratio. This has tremendous implications for our economy." He criticized, "Amid this, the government planned a New Deal Fund, injecting 3 trillion won of government finances and 4 trillion won of policy finance institution investments into the securities market, claiming to foster future promising new industries."

Yoon criticized, "If you want people to invest in promising industries, you should improve the competitive environment, not hype it up with government money. Companies lined up to hold general meetings of shareholders to engage in New Deal-related businesses. A government with such perceptions could produce policies that kill corporate vitality and think that just spending finances solves everything."

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