Home » News » ‘Household debt’ is the worst in the world… Lee Jae-myung “There is no problem even if the national debt ratio exceeds 100%”

‘Household debt’ is the worst in the world… Lee Jae-myung “There is no problem even if the national debt ratio exceeds 100%”

Enter 2021-12-06 17:11 | Edited 2021-12-06 17:34

▲ Democratic Party presidential candidate Lee Jae-myung speaks at the ‘National People’s Election Committee with Small Businesses’ held at the Democratic Party of Korea in Yeouido, Seoul on the 6th. ⓒNewsis

Democratic Party presidential candidate Lee Jae-myung pointed out the government’s passive fiscal management and argued that “there is no problem even if the national debt ratio (total GDP) exceeds 100%.”

“Normal countries have a national debt ratio of 110%”

Candidate Lee said at the ‘National People’s Election Committee with Small Businesses’ held at the Democratic Party of Korea in Yeouido, Seoul on the 6th, saying, “Ordinary countries have an average national debt ratio of over 110%, but our country is still only 45%.”

According to the ‘Comparison of national debt-to-GDP ratios of countries (as of the first quarter of 2021)’ released by Candidate Lee on the same day, with the exception of special cases such as Japan 237% and Italy 179%, Spain 141.7%, France 133.7%, UK 132.0 %, the United States 127.7%, Canada 118.2%, Germany 76.4%, Sweden 41.8%, etc., and the Republic of Korea 45.7%.

Candidate Lee explained, “Is there any particular problem if the national debt ratio exceeds 100%? No,” he said.

“The state usually supports household income very stingy, and even when it is necessary to spend money to maintain the national economy and survive in the Corona 19 situation, it is passed on to households and small business owners,” Lee said. How can the people live with the policy of keeping the debt-to-equity ratio below 50%?” he asked.

Candidate Lee also criticized the government’s support for small business owners, saying, “It’s really sloppy. It’s a crutch,” and “the government has not fulfilled its responsibilities.”

Expert “It is difficult to compare the national debt ratio uniformly”

Contrary to Candidate Lee’s assertion, experts are of the view that the current national debt ratio is at a risky level.

Kim Won-sik, a professor of economics at Konkuk University, told New Daily on the 6th that “the level of national debt in Korea has rather exceeded the level of risk,” he said. It should be reduced,” he said.

Regarding Candidate Lee’s claim that Korea’s national debt ratio is lower than that of advanced countries, Professor Kim pointed out, “Each country has different circumstances and systems, so it is difficult to make a uniform comparison.”

Kim Tae-gi, a professor of economics at Dankook University, pointed out, “The US and Japan, which have high national debt ratios, are key currency countries. The situation is different from ours as they print money and issue money to the world.”

Professor Kim explained, “Greece, Spain and Italy, which have high national debt ratios, are high unemployment and low-growth countries. It is pointed out that “there’s a small national debt, so it’s said as if it’s bad, but that’s populism and it deceives the people.”





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