[Column] The Ruling Party's Obsession with 'Nationwide' Support

[Sejong=Asia Economy Reporter Moon Chaeseok] "The formulation and passage of a supplementary budget (supplementary budget) including disaster relief funds for the entire population is urgent."

This was stated by Yoon Ho-jung, the floor leader of the Democratic Party of Korea, as he announced the preparation of the second supplementary budget this year. Earlier this year, President Moon Jae-in said during the first supplementary budget discussion that he would consider a nationwide consolation payment once recovery from COVID-19 was underway, and the ruling party has now begun to concretize this. The reason given is to support citizens who are still in difficult situations or have just entered the recovery phase.

However, considering that some support policies are on the verge of being cut off, there is doubt about whether "payment to the entire population" is truly persuasive. The employment retention subsidy system provided to special employment support industries such as the aviation sector will end at the end of this month. Although the business community has persistently requested an extension, the government and ruling party remain indifferent. In the case of small business owners, there was a proposal to apply support retroactively until the loss compensation legislation is enacted, but no further progress has been made. There is a high possibility that the issue of whether it is appropriate to include even those who are financially stable as support recipients will arise again.

This ultimately leads to questions about the ruling party's sincerity regarding nationwide support. Moreover, the presidential election is scheduled for next year. It is inevitable to harbor suspicion that the ruling party might be aiming to replicate the effect of distributing disaster relief funds ahead of last year's general election.

Providing support funds to all citizens is easy. It can also help with votes. But there are many issues to consider. Can the ruling party handle the backlash? Although tax revenue is expected to increase due to economic recovery this year, is it the right decision to spend unconditionally? Rather, shouldn't incoming revenue be saved and given only to those who need support?

Calvin Coolidge, the president during the 1920s, the greatest economic boom in American history, warned that "the easiest thing in the world is to spend money." The ruling party should take to heart that fiscal spending must always be cautious.

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