On the surface, according to the indicators, there are said to be signs of economic recovery. The common people (seomin), however, say they cannot feel any difference. Indeed, if recent growth has largely benefited people of high-income then the common people are not exaggerating. Third quarter figures on household finances released by the National Statistical Office earlier this month have been analyzed over again, and the findings support that hypothesis.
A comparison was done on household income during the third quarter of this year and the same period two years ago. The lower 40 percent of the country saw an increase of 6.8 to 7.9 percent, while the top 20 percent saw an increase of 10.9 percent in income. The disparity is getting worse. The lower 40 percent of the country has seen an increase in working income of only 4.7 percent over the last two years, making it impossible to keep up inflation, and people who work for themselves had their actual business income shrank as much as inflation rose. Despite transfer income such as public assistance, half of the lower 30 percent of income earners are in the red. That shows you how hard a time the common people are having.
One big problem is a social atmosphere in which income disparity is seen as an inevitable part of the market economy, because all the while the disparity is getting worse. Even if the economy is improving, if the fruits of that are benefiting only part of society you have to ask who the economic recover is for in the first place. There needs to be a policy formula that would guide both economic recovery and an alleviation of the disparity. That will of course not be easy. The new liberalism that has permeated our economy is putting the economically weak – irregular workers, the self-employed, and others – in an ever more difficult position. The conservative media are obsessed with labeling anyone who talks about "distribution" a leftist. That is sad, because it prevents any progress in discussion about finding harmony between growth and distribution.
Economic disparity is not a form of inevitable growing pain. Much of it is the result of the failure of the market. There desperately needs to deeper introspection and a wider consensus on the part of government and society about the issue.
The Hankyoreh, 17 November 2005.
[Translations by Seoul Selection]
[Editorial] The Growing Shadow of Economic Disparity |
