Textbook Says Growth Helps Distribution

“Suppliers always attempt to earn higher profits, so they fight over selling same products.” (From the 3rd-year middle school social studies textbook, p. 85, Kyohak Publishing Co.)

“Companies gain profits by producing goods. During this process, businesses provide jobs for households and contribute to the promotion of national economic growth.” (From the Next-Generation Middle School Economics Textbook, p. 47-48, the Federation of Korean Industries)

Views on corporations are different between a current 3rd-year middle school social studies textbook and the FKI’s next-generation economics textbook for middle schoolers,” which is to be published in the second half of this year.

Based on its judgment that current textbooks contain a considerable level of anti-market and anti-business sentiments, the FKI decided to publish a new economics textbook last year and completed preparations recently. The purpose of new economics textbook is to help middle school students to build a balanced sense of market economy.

The FKI’s next-generation middle school textbook, which was obtained by the Dong-A Ilbo on Thursday, comprises of four major chapters: △life and economics and economic issues (market economy and household, business and government), △market and supply•demand (market price decision and limitation), △understanding of national economy (business cycle and free trade), △economy and society (globalization and human rights) in 320 pages.

Particularly, the new textbook quotes “Mankiw`s Principles of Economics” (college textbook), “New Ideas from Dead Economists” (a national bestseller) and local news articles to explain various social events from economics perspective.

For example, in explaining “opportunity cost,” the FKI`s textbook cites a famous basketball star Kobe Bean Bryant who entered the NBA right after his high school graduation. It said that an enormous loss of a four-year income that he had to give up for attending college is “opportunity cost.”

The textbook also explains the private ownership rights by citing a 19th century case of Zimbabwe in which elephant ownership rights were handed over to land owners for the protection of this endangered animal.

Elephants were able to escape from extinction as the land owners protected elephants with their money to pursue their profits. That is an example of a market’s “invisible hand.”

The current and new textbooks show a big difference on the explanations about numerous economic issues.

On the issues of growth and distribution, current middle school textbooks stress the importance of distribution by saying that market economy has failed to fulfill its function of delivering bread properly to all members of society. It is time to concern to whom, and how much, bread should be provided.

On the contrary, the next-generation textbook explains, “Without growth, conflicts will likely occur as people should share the given production. But if the pie gets bigger, people can take a larger share without depriving that of others,” putting more emphasis on growth.

Current textbooks emphasize the negative impact of market economy, saying that the market economy system has expanded gap between the rich and the poor. But the new textbook introduces positive sides, such as improved quality of life thanks to industrialization and economic growth.

On the issues of market openness, current textbooks demonstrate that the World Trade Organization system is a favorable decision for advanced nations.

In the mean time, the new textbook says, “Global trade can threaten domestic industrial bases. But in Korea that is short of natural resources and highly dependent on exports, FTAs and international trade are necessary.”

The FKI has recently applied for an approval of the next-generation textbook to the Seoul Metropolitan Office of Education so that it can be used as a school textbook. It will be distributed to schools and bookstores after the education office’s approval.

An FKI official said, “The importance of economics education in middle school social studies is higher than in high school as middle school economics is a compulsory subject unlike in high school, which educates social studies as an elective course.” He also added, “In designing the next-generation textbook, we excluded ideological biases and tried to give an easy explanation about market principle.”

Last May, the FKI published the next-generation economics textbook for high school students. Since then, over 75,000 copies have been distributed to companies, schools and military bases.