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This article is overly simplistic, and all but guaranteed all these generic discussions about tax and growth rate, far detached from economic/social situation o

This article is overly simplistic, and all but guaranteed all these generic discussions about tax and growth rate, far detached from economic/social situation of Korea. South Korea has some serious problems. - Living as South Korean is hard and stressful. Really hard and stressful. It has one of the highest suicide rate, highest elderly poverty rate among OECD, and again one of the longest working hours. Not to mention extreme competition at school. - As a result, less and less Koreans are getting married, and less babies are born, because people cannot afford to marry and have babies. These days a lot of young people say they cannot afford to be in a relationship! We are turning into a country of "involuntary celibates." - This of course means there will be less and less young people to sustain the economy, which will start a positive feedback loop. Immigration might help but it can only help so much. The government is thus forced to do something. Increased minimum wage, more public sector jobs, better enforcement of workplace safety laws (which have been basically toothless): these are desperate attempts to make people stop feeling like walking next to a cliff (and hopefully to make more babies). If these policies also bring immediate economic growth, that's great, but that's not the primary objective, as far as I'm concerned.

cryptonector 8y ago
If young people cannot afford to marry and start families, then... they need more and better jobs, and to get to keep more of their income. I.e., more growth and lower taxes.
- summerlight 8y ago
  You suggest "more growth" and "lower taxes" as a solution. The former is more of an objective rather than a solution; every single government wants "more growth" but how to achieve that is a completely different story. About "lower taxes", South Korea already tried that option for 9 years and it had spectacularly failed. (BTW, income and corporation tax in SK is generally much lower than the US, so apparently "even lower tax" that you might suggest won't likely work.)
  - cryptonector 8y ago
    There's certainly a point where lowering tax rates cannot help much (diminishing returns). But raising tax rates from that point might have an outsize effect, depending perhaps on how much (but still assuming not that much of a change). As to growth, you're absolutely right that it's not as simple as wishing it. But the same is true for raising wages: sure, it's trivial to raise the statutory minimum, but for that to have the intended effect is a different story, unless the intended effect was more unemployment.
- yongjik 8y ago
  People who are earning minimum wages generally don't pay tax. In order for them to keep more of their income, yes, they will actually need lower tax, i.e., minus tax, i.e., welfare. And guess how we fund welfare?
  - cryptonector 8y ago
    Many people who earn more than minimum wage and do pay taxes also find life unaffordable.

cryptonector 8y ago

If young people cannot afford to marry and start families, then... they need more and better jobs, and to get to keep more of their income. I.e., more growth and lower taxes.

summerlight 8y ago
You suggest "more growth" and "lower taxes" as a solution. The former is more of an objective rather than a solution; every single government wants "more growth" but how to achieve that is a completely different story. About "lower taxes", South Korea already tried that option for 9 years and it had spectacularly failed. (BTW, income and corporation tax in SK is generally much lower than the US, so apparently "even lower tax" that you might suggest won't likely work.)
- cryptonector 8y ago
  There's certainly a point where lowering tax rates cannot help much (diminishing returns). But raising tax rates from that point might have an outsize effect, depending perhaps on how much (but still assuming not that much of a change). As to growth, you're absolutely right that it's not as simple as wishing it. But the same is true for raising wages: sure, it's trivial to raise the statutory minimum, but for that to have the intended effect is a different story, unless the intended effect was more unemployment.
yongjik 8y ago
People who are earning minimum wages generally don't pay tax. In order for them to keep more of their income, yes, they will actually need lower tax, i.e., minus tax, i.e., welfare. And guess how we fund welfare?
- cryptonector 8y ago
  Many people who earn more than minimum wage and do pay taxes also find life unaffordable.