South Korea has untaken one of the most radical left-wing economic systems out there: a steep increase in minimum wage nationwide. But now, the country must face the dire consequences of that decision and the harsh reality that the regulations are destroying their economy.
South Korea is home to one of the world’s boldest left-wing economic programs. President Moon Jae-in’s flagship economic policy, “income-led growth,” has led to dramatic increases in minimum wages since he took office in 2017. Those increases are now driving a terrifying rise in unemployment, just as a slump in global trade is already buffeting Korea. The nation is now staring an economic crisis in the face.
According to the Wall Stree Journal, it isn’t just South Korea, but they seem to be the worst stranglers of their own economy.
Currency Wars: The Mak…
Best Price: $1.25
Buy New $6.59
(as of 07:05 EST – Details)
Several countries have raised low pay levels in recent years, but guided by “Moon-nomics”, Korea has taken a rise in minimum to an extreme. Its minimum wage will rise by 10.9% this year, after a 16.4% increase last year. At 8,350 Korean won per hour ($7.44), the rate is now higher than the United States’ federal minimum wage, even though the country’s gross domestic product per capita is around half the U.S.’s. Even before these increases, the Korean minimum wage was equivalent to 53% of the country’s median wage in 2017—on par with the United Kingdom’s and higher than Japan’s. –Wall Stree Journal
South Korean ruling class claimed that their idea would “spread the wealth” more equally across the country, however, it’s done nothing but impoverish people and make finding a job all but…