Yoo Seung-min: "Lee Jae-myung's '100,000 Won to All Residents'? Malignant Populism, Not Progressivism"

Gyeonggi-do Decides to Distribute 2nd Disaster Basic Income
Yoo Seung-min: "Vote-Buying Act with No Income Redistribution Effect"

Former People Power Party lawmaker Yoo Seung-min is giving a greeting at the 'Park Won-soon Administration Lost Decade, Promise for a Rebound' presentation held at the party headquarters in Yeouido, Seoul on the 20th.
[Image source=Yonhap News]

[Asia Economy Reporter Heo Midam] Former People Power Party lawmaker Yoo Seung-min harshly criticized Gyeonggi Province Governor Lee Jae-myung on the 21st for announcing that he would provide disaster basic income of 100,000 won per person to all residents, calling it "not progressive but merely malignant populism."

In a post on his Facebook on the same day, Yoo said, "'Providing 100,000 won to all residents' is a vote-buying act with zero income redistribution effect."

He explained, "The philosophy and principle we agreed upon is to collect more taxes from the rich and use them for welfare in a way that benefits the poor and those left behind in competition. This principle is the spirit of republicanism pursued by a democratic republic. It is a principle the state must uphold to create a warm community."

He continued, "Among the 14 million residents of Gyeonggi Province, there are both wealthy and poor people. Some are struggling day by day to sustain their lives due to the COVID-19 crisis, while others have not suffered much damage. The polarization and inequality in Gyeonggi Province are no different from the serious polarization and inequality across the country," he pointed out.

He also questioned, "Then why not give 200,000 or 300,000 won to the poor and those in difficulty, but instead give 100,000 won equally to all Gyeonggi residents?" and declared, "Such a policy has zero income redistribution effect."

Yoo said, "As pointed out by the Korea Development Institute (KDI), the consumption stimulation effect is only about 30%. Providing it in local currency is inefficient, as noted by the Tax Research Institute."

He added, "This is not progressive either," and criticized, "Governor Lee is merely using the name 'disaster basic income' to experiment on Gyeonggi residents in order to push his basic income policy in the presidential election."

Finally, Yoo raised his voice, saying, "Giving the same amount to all citizens during elections without principles or standards, and then giving only to those in difficulty after the election?if this is not vote-buying for elections, then what is it? The taxes paid by the people, the taxes paid by Gyeonggi residents, are not a magic wand."

Earlier, Gyeonggi Province decided to provide the '2nd disaster basic income' of 100,000 won per person to all residents.

Governor Lee held an online press conference at the Gyeonggi Provincial Government Office the previous morning and stated, "Considering the severe and urgent economic situation due to COVID-19 and citizens' awareness of quarantine compliance, we judged that there is no problem in providing the 2nd disaster basic income."

Gyeonggi Province plans to provide the income to about 13.99 million residents, including foreigners and overseas Koreans who were not supported during the first disaster basic income last year.