[Editorial] For the Economy in the New Year, the Private Sector Should Be Revitalized First

The government has announced the direction of the nation’s economic policies for the New Year. It has set job creation and sustainable growth as its foremost priorities while setting “five percent growth to create 400,000 jobs” as a goal it must achieve at all costs. The overall direction is not that different from this year’s policies. It cannot be ultimately different. The focus of all policies cannot help but be placed on job creation and economic recovery.

It should not be viewed negatively that the government has declared an aim of five percent growth, which is much higher than the estimates of other institutions. A strong will within policies still plays an important role in our economy, and five percent is a psychological limit that props up the confidence of economic players.

However, there is a flaw in using an economic stimulus centered on national finance and pensions that was set forth as a primary means. As we saw in previous cases from home and abroad, while intervention in the national finance and pension plan might be a supplementary means to control the economy, it cannot be a fundamental solution to economic difficulties. If the government makes excessive efforts to meet the five percent growth target by depending wholly on national finance and pensions, investment opportunities for the private sector could diminish and the economic recession could become chronic by further undermining financial stability.

Job creation should be achieved by reviving the private sector, for it is clear that there will be limits if the government seeks to create jobs by pouring tax money into the public sector and providing temporary jobs like it did this year. Unless new jobs lead to production increases, there is no guarantee that it will bring forth economic growth and an improved quality of life.

In sum, policies and an environment that enable private economic players to invest, consume, and demonstrate their creativity is of utmost importance. In particular, the ruling party must resolve the suspicion that it is a group seeking to undermine the capitalist economy. The ruling party refutes that it is not anti-market and anti-business. However, all legal systems and attitudes against private property rights and the freedom of choice are anti-market and anti-business. Such cases this year are too numerous to count.

The government should do away which such policies and practices that trigger further anti-investment, anti-consumption sentiment. Moreover, implementing the regulatory reform that has only been all talk so far in a short period of time is a prerequisite challenge for the New Year.