[Asia Economy (Suwon) = Reporter Lee Young-gyu] Lee Jae-myung, Governor of Gyeonggi Province, strongly criticized the complacent response, saying that while the President is ordering extraordinary measures, economic officials and aides are only considering expanded versions of old policies.
Governor Lee emphasized that the name does not matter, whether it is disaster basic income, emergency disaster relief funds, or emergency livelihood allowances, and stated that in the current crisis situation, comprehensive and equitable support should be provided to all citizens.
On the 29th, through Facebook, Lee expressed concern about the severity of the current situation, saying, "The economy has come to a halt due to COVID-19, incomes have sharply declined, pockets are empty, and consumption is difficult, causing the economic circulation chain to be broken."
He further diagnosed, "To overcome this unprecedented national economic crisis, it is urgent to implement an 'unprecedented extraordinary prescription' that is 'fair' and 'equitable,' raising the disposable income of all citizens to stimulate consumption and revive the stalled economic circulation."
He also analyzed, "The era of high growth, where the economy grew simply by increasing supply capacity and everyone enjoyed the fruits, is over. Now, the economy survives by increasing the consumption capacity of the people. The tendency for consumption to stagnate and economic vitality to be drained due to wealth and income inequality will deepen even faster with the Fourth Industrial Revolution."
Governor Lee judged that expanded versions of policies useful in past eras are inadequate to properly adapt to qualitatively different new crises.
He urged, "Now that we have shifted from an era of insufficient investment funds to an era of insufficient investment destinations, we must alleviate inequality and strengthen the consumption sector. Economic officials and experts must change their mindset to address the qualitatively new crisis triggered by COVID-19."
Furthermore, he said, "President Moon Jae-in stated at the special economic and financial situation inspection meeting on the 13th that 'the government must do its best to create unprecedented measures that have never been done before,' and at the emergency economic meeting on the 17th, he emphasized, 'There is a strong demand for extraordinary support measures to be additionally considered at a groundbreaking level. We should not hesitate to implement even stronger measures.' However, looking at the current situation, contrary to the President's call for 'unprecedented extraordinary measures,' economic officials and aides are only contemplating expanded versions of old measures," expressing his lament.
He advised, "We should not simply ignore the proposal by Director Yoo Si-min to maximize the multiplier effect by issuing 50 million nationwide limited-time prepaid cards."
Governor Lee also pointed out, "Among the cities and counties in Gyeonggi Province, those that have provided even small amounts equitably to everyone have no complaints, but in cities and counties that gave larger amounts but excluded some, dissatisfaction is erupting. We must face this reality. This policy is not a welfare policy supporting vulnerable groups but an economic policy to promote consumption, increase sales of small and medium-sized merchants, and stimulate production. Excluding high taxpayers who contribute more to the finances is double discrimination, so it is right to provide support to everyone."
Finally, Governor Lee earnestly requested the government, saying, "To eliminate policy blind spots and revive the economy by joining forces with the hardworking middle class who pay taxes, it is the right and fastest way to provide swift support to everyone. Regardless of whether it is called disaster basic income or anything else, I hope that support will be provided 'fairly' and promptly to all citizens."
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