[The Editors' Verdict] The Homework 'Black Monday' Left for the Yoon Administration

[Asia Economy Reporter Baek Jong-min] Inflation is bringing a crisis to the free democratic world. On the 13th, immediately after the announcement that U.S. inflation had reached its highest level in 41 years, global stock markets plunged one after another. This is the so-called 'Black Monday.' Citizens of democratic countries led by U.S. President Joe Biden, a staunch supporter of democracy, are crying out that they can no longer make ends meet due to the sharp rise in inflation. The principles centered on democracy and human rights, which were emphasized after the administration took office, have backfired. Outcries inevitably turn into complaints. President Yoon Seok-yeol, who emphasizes liberal democracy, has no room to be complacent. Now is the time to closely examine the global economic situation and the potential changes in U.S. domestic politics, even while paying attention to the Biden administration's moves.

The U.S. inflation rate reported last weekend was enough to surprise economic officials and central banks worldwide. The U.S. inflation rate, which many expected to decline, surged again to 8.6%. Following this, news came that the average price of gasoline in the U.S. exceeded $5 per gallon for the first time ever.

When I was stationed as a New York correspondent last January, the gasoline price was about $3.3 per gallon (3.7 liters). Now it has surpassed $5. It rose by about 50% in just over five months. The surge in oil prices has poured fuel on the inflation 'fire.' The situation in Russia, which triggered the Ukraine crisis that caused the oil price spike, is contrasting. Russian prices have recently stabilized, and the ruble's value has soared by 30% against the dollar this year. The expectation that international sanctions would rapidly shrink the Russian economy was wrong. Although China is also said to be in crisis due to the spread of COVID-19, it does not feel the same anxiety as the U.S.

The public sentiment in democratic countries is like 'reed.' According to RealClearPolitics, President Biden's average job approval rating has dropped from 55% at the start of his term to 38.9%. The joy of citizens who cheered in the streets upon Biden's victory in the last election has turned into sighs. Some even say that the Trump era was better. Grand future discourses tend to be overshadowed by immediate issues of livelihood.

Major U.S. media outlets report that the failure to control inflation is at the heart of the Biden administration's crisis. There is a high possibility that the Republican Party will gain a majority in the upcoming November midterm elections. If our Democratic Party lost power due to a sharp rise in real estate prices, it means that the U.S. Democratic Party is likely to lose the administration it barely regained from Donald Trump because of inflation.

Biden emphasized human rights and democracy even before taking office. He labeled China, Russia, North Korea, Saudi Arabia, and Venezuela as countries violating human rights and democracy. He has clashed with Putin, Chinese President Xi Jinping, Saudi Crown Prince Mohammed bin Salman, and others. What kind of countries do they govern? China is the world's factory, and Saudi Arabia and Russia are kings of petroleum. Biden might have thought that managing only allied democratic countries without their cooperation would restore America's glory. Biden's 30 years of diplomatic experience has collapsed so futilely.

The Republic of Korea is a free democratic market economy country. Naturally, the model is the U.S. The current government's economic and diplomatic policies are all oriented toward the U.S. President Yoon Seok-yeol also emphasizes the American-style global standard daily. Therefore, preparations must be made for changes in the U.S. If the Republican Party becomes the majority in the November midterm elections or a Republican president is elected in the next presidential election, current policies are likely to be discarded. There is much to do, and there is no time to hesitate. We must stay alert.

Baek Jong-min, Opinion Editor

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