This paper tries to offer an critical analysis of the economic policies of President Myung-bak Lee, his so-called MBnomics. MBnomics consists in following three assumptions. The first one of cuts in taxes and deregulation for chaebol (conglomerates) i...
This paper tries to offer an critical analysis of the economic policies of President Myung-bak Lee, his so-called MBnomics. MBnomics consists in following three assumptions. The first one of cuts in taxes and deregulation for chaebol (conglomerates) is likely to be assumed to be a springboard for a new leap of Korean economy. The second one of a brisk open-door policy such as a Korea-U.S. free-trade agreement might derive from the hope it would boost Korean economy to the level of the developed country’s economy. The third one of economic growth would automatically result, they vaguely hope, in the promotion of welfare services. But all these three assumptions are neither logical nor realizable when we reflect on them in the context of current Korean economy. Considering the fixed trend of economic polarization of the country, the economic environment friendly to conglomerates and the wealthy class has nothing to do with and hardly leads to economic stabilization and steady growth, if anything.
This paper highlights the problem of solving economic polarization by suggesting an alternative of balanced growth and distribution of wealth. As the policy shift towards balanced growth would not only promote democratization of the country’s economy but also ensure its steady and healthy growth, it is most urgent for it to be executed, not least for the present economic and financial crisis the country is now faced with.