[Editorial] Do Presidential Candidates Have a Plan to Restore Korea’s Middle Class?

The Seoul National University Institute for Development and the Dong-A Ilbo jointly conducted a survey about how the nation perceives itself after the Asian financial crisis. Only 15% of respondents think their finances have improved over the past 10 years, while 36% responded that their wealth has decreased. Those who see themselves belonging to the middle class dropped from 41% ten years ago to 28%.

Another report published by the Korea Institute for Health and Social Affairs indicates that the percentage of Korea’s middle class went down from 56% in 2000 to 44% in 2006. During the same period, the low income bracket increased from 34% to 45%, and the lowest rung on the income pyramid almost doubled in size from 11% to 20%.

Although the two reports cited above used slightly different concepts and criteria for the survey, the downward movement in the nation’s income level seems undeniable. President Roh’s promise that during his presidency he would make 70% of the nation middle class sounds hollow now.

In the former survey, 56% of respondents said they would consider ‘security’ as the prime criteria in choosing a job, whereas 44% cited unemployment as the greatest cause of their sense of insecurity. With increased insecurity, those who think that money equals success has risen from 36% ten years ago to 61%.

The middle class is one of the most important pillars of a nation, which cushions social conflict. The decrease in the ratio of the middle class followed by a lack of sense of responsibility as the middle class is a serious warning that the nation has become vulnerable to social conflicts caused by the disparity of wealth.

To nurture the middle class, quality jobs need to be created. Foreign investment in the nation needs to be attracted, and a more proactive growth policy should be employed to create jobs. Policies against market principles will only slow down economic growth, and relying on popularism and attacks on the wealthy will only accelerate the retrenchment of the middle class.

The presidential candidates need to present alternative plans to restore the nation’s middle class. What is needed is not just slogans, but plans that can be verified in terms of validity.

The leftists claim that they are the only force in Korea capable of solving the widening societal income gap. They are using this claim as a justification to run a second term. Yet waging a political attack against the haves only increases the outflow of money and people abroad. This will neither increase the nation’s wealth nor expand the middle class. Any slogan that claims to take wealth from the haves to give it to the have-nots will never succeed in making a successful nation.