Why South Korea’s Economy is Stagnating
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- เผยแพร่เมื่อ 3 พ.ค. 2024
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After decades of major growth, South Korea's economy is stagnating as structural problems begin to hold the country back. In this video, we'll explain the data and how an ageing population and Chinese competition could present long term economic issues.
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1- www.ft.com/content/b34e8bc8-9...
2 - www.ft.com/content/49a7a751-f...
3 - www.economist.com/finance-and...
4 - kellogg.nd.edu/sites/default/...
5 - core.ac.uk/download/pdf/51177...
6 - www.imf.org/external/pubs/nft...
7 - www.phenomenalworld.org/analy...
8 - www.oecd-ilibrary.org/sites/9...
9 - keia.org/the-peninsula/from-s...
10 - www.piie.com/blogs/realtime-e...
11 - www.mckinsey.com/featured-ins...
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Learned two new things from this video .
1. Drake is 37 .
2. Brad pitt is 60.
😂
Not the only thing we’ve learned about that man recently 😂
Thats not the point of the video. The video is about a brief analysis of South Korean economy not someone's age.
@@freddiemercury2075 and
@@freddiemercury2075 no shit Sherlock
Recent videos: How China, Japan, and South Korea's economy is collapsing
Thailand: *sweating intensifies
Tailand is no heavy industrialized east asian economy.
When someone should be sweating next, it would be Taiwan.
Thailand still has its peak to come, there is plenty of room to grow.
*correction: i am totaly wrong with this,
Thailand seems to be the odd one out of the south east asian countrys, with a birthrate more similar to the east asian nations.
I just assumed by default it would be similar to Indonesia, Malaysia or Vietnam, my Mistake.
To all who liked this comment, dont listen to people on the Internet!
Does westerners afraid East Asian ?
North Korea is smart
You can't have an economic crash if your economy is already crashed
More like Malaysia is next.
@@mam0lechinookclan607 Taiwan's more than sweating. The US's plan for Taiwan is publicly to move its microchip industry to stop giving China an incentive to invade, privately to not have to defend Taiwan because they won't have anything at stake.
This channel: China is collapsing, Japan is collapsing, Korea is collapsing.
Me: when is this channel going to collapse?
😂😂
Only west not collapsing to this channel😂
Something that really sells in western society
😂
한국은 가난하고 후진적인 나라이다
RIP Drake. Can't believe it's not illegal to murder someone with a diss track.
He will bounce back
Never Say NEVER 😎 Justin Bieber
How am watching a video on South Korea and I still can't avoid this beef😂😂😂😂
@@TimmyFromSchool Drake has a korean child
@@yonboybigbezang8808cringe pfp
When a country's population is collapsing on its own, and yet the economy is merely stagnating, you know they have been trying their hardest.
Situation with SK is even more acute that what Japan faced before, Japan's population decline is a lot less steep and over many years, SK is going into a death spiral in comparison.
Slava TSMC 🇹🇼
@@Booz2020 'Trying their hardest' without actually trying whatsoever to fix any of their core problems, yeah, lmao.
@@alexeistrife56 Never Say NEVER 😎 Justin Bieber
Like its damn near impossible to improve fertility rate, except if there is whole revolutionary situation
They're tried so hard to not let young people own homes and become financially independent alright
If the population is collapsing, but GDP is merely stagnating, isn’t that a win?
The population is not yet collapsing, it is still stagnating just like the economy currently is. Also, the population is aging. Old people still contribute to the economy by consumption, but they don't help with production.
I believe with hard working people, south korea can be the next China
Why is a declining population a good thing
FYI - Park is the family name not Hee. If you are trying to use his given name it is Chung Hee.
Drake Dead at 37 is a funny diss from the TLDR team, i love it.
i personally think that after achieving a high gdp per capita stagnation is an inevitable, and if they can maintain those levels, its good enough
Right
China called this idea "Ah Q spirit".
South korea just posted the second highest economic growth in the world after the US of 2.8% according to IMF and world bank.🤷🏼♂️
1:10 nice to see a deadbeat father here lol
You heard Kendrick’s new track too??
This is just natural, you can not grow very fast for ever, Japan has slowed down, now Korea and China too, however it’s NOT collapsing as western media exaggerated.
Just stupid TDRL, not western media
TLDR is made by people with 90 IQs for people with 70 IQs . its basiclly a charity
They even reported dubai is gone due to recent flood meaning no more thriving dubai.What a jealousy creep.
@@NGE000170 IQ+ADHD 💀
This is not natural, they have the lowest fertility rate.. it's become a big population crisis
DRAKE taking Losses even in this video haha
This general was an example of “The best leader is a good autocrat”
They just left out the part were workers had to work 12 hours a day with no rights
@@JahNgomba-ir2zi Nobody forced them to work unlike N.Korea.
@@primarch02 you don’t know much of South Korean history then. It was pure forced labor. They got rich thanks to a system closer to socialism than to free markets capitalism
Democracy does not work in a country that is poor and unstable. Look at Haiti!
@@JahNgomba-ir2ziSo socialism benefits rich men?😂😂😂😂
FUN FACT
OECD raises S. Korea's economic growth rate for 2024 to 2.6%
China 4.9%
Korea 2.6%
United States 2.6%
Australia 1.5%
Canada 1%
France 0.7%
Italy 0.7%
Japan 0.5%
UK 0.4%
Germany 0.2%
China grew 5.3% in January-March and expect to finish the year btw 4.6 and 5.2%
@@kanavaro2010do you have data from inside the CCP? Or how can you know the data China publishes are true?
China’s economic news has pretty much been on a growth trajectory despite the gloom doom ecobomic naysayers of the last 20yrs. Chiba’s stats are more reliable than….USA - growth of 2.5%???? REAL growth with i flation taken into account is a shrinking true growth rate. Hahahah
@@maritaschweizer1117 The impressive part - net exports are easily verifiable. I don't think many question the govt spending and investments part of GDP either because most of the time Western sources are concerned China's govt is subsidizing too much in building factory capacity. The remaining portion - Consumption really isn't impressive in China and honestly should be more not less.
Personally I wouldn't question if the GDP is accurate as much as I would question if the investments are productive.
@@kanavaro2010According to CCP.
Brad Pitt is 60 years old? 😱
In the 60s north korea was better
@@robertduluth8994 who asked 😂
@@yungenvy436 lol i think that was meant for another comment
Because they don’t have any babies and are running out of workers.
That WOULD have been a problem 20 years ago, but the economics are changing and 30% of workers are going to lose their jobs in the next 5-10 years anyway.
A demographics collapse is a future problem, not the present problem. The present problem is that people are being overworked by the system to a degree where neither are they productive, and neither do they want to have children in such an environment.
There are always some economists saying countries are “running out of workers”. But the ground reality is totally different. South Korean children have to pass some of the toughest exams in the world and only some make it to the prestigious universities on the path to cushy high skilled jobs. But the others have to resort to low skilled jobs to survive. More of the high skilled jobs like those in IT are becoming redundant as AI takes over those jobs.
Oligarchies are destined to fail
I believe with hard working people, south korea can be the next China
Focussing on South Korea's economic stagnation is like concentrating on Australia's unique cuisine: it seems to miss the point (yes, it is stagnating but so are almost all other developed countries). As an American who looks at a lot of economic data, I've always wondered why South Korea's economic success is the outlier. Look at, Thailand, Mexico, Brazil, Chile -- and maybe even China. There is something very unique in this small, very politically and socially conservative country that can't be exported to other countries. What it is, I don't know.
I agree with everything you said except that Korea is not stagnating economically. If you do follow data like you say you do, then it should be obvious as well..
Thank you for respecting our country. I’ve wondered a lot about this as well and I do have a good and classic explanation for this.. We had great leaders. In two aspects- Politics and Business. In Politics it was the president Parkjunghee mentioned in the video, and the Business part Jungjooyoung, who was the man who founded the Hyundai group- (this man accounted to almost half of the Korean GDP growth once) to compare with western leaders, perhaps the level of Napoleon would suit right. The most astonishing part of these two leaders was that their foremost goal was improving our country to become a “1st class” country, instead of enjoying their power or wealth. There were a lot of reasons for this, but anyway it was just a miracle for us to have such leaders with abilities at the right time and with such patriotic minds. Our growth would be accounted to much more factors as well, perhaps competition with NK or the feeling of inferiority to Japan, who was our rival since the ancient period, but I believe these two man are the guys who deserve the most credit. Especially Jungjooyoung. You should read his biography, Dunno if there is an English version, but it really changes your life’s attitude-I was one. His famous quote is, “Did you try?”
@@Iceamericanonews This is a circular explanation. That is, it answers the question of why South Korea is unique by pointing out its uniquely good leaders without addressing why South Korea has uniquely good leaders.
@@posthocprior Well in the postwar era it may seem that SK is unique but if we look at a more larger historical context there are much more examples, France with Napoleon, Japan at the Meiji era(late 1800s), if you look closer to these cases you will see that when smart patriotic leaders stay strong your nation grows up- especially the Japan case suits well, they started from the agricultural society stuck in 1500s but in 50 years they beated Russia, and this was all due to the Japan elites at that era who knew what they had to do- learn western technology and be one of them. Didn’t other countries aware of this solution? They knew it as well, but there were no leaders in other Asian countries who actually utilized this solution, they were more interested in keeping their society and orthodoxy. Was this just by coincidence? Or something of a national characteristics? Then why did Korea stumbled during the 1800s and be colonized but became one of the leading countries nowadays? Set aside nationality- human might look different but they think just all same. I believe the right timing and right people standing at the top decides the nation’s future the most. Our history proves it.
@@posthocpriorI wouldn’t say South Korean has uniquely good leaders. South Korea has a lot of corruption scandals. The unique thing is that the leaders are convicted when they are found out so the investigation into corruption is working well in South Korea which could be exported into other nations.
In most East Asian names, the family name comes first, followed by the given names. This applies to Korean names. So, Park is the family name, and Chung-hee are the given names.
Must be nice to live in a country where 2% growth is a crisis.
It depends on how high your inflation rates is,.in the case of south korea for 2023-2024, it's around 3-4% which mean you are losing money and their buying power is decreasing..ofc that would be a problem..
Funny how that of the US was 1.9% last year yet no eye brows were raised
@@zenaku4 That's not how that works... that would mean almost every nation suffering from their buying power decreasing. It's not 2-3=-1 because GDP does not equal CPI.
It's actually is, if your GDP growth lower than your inflation rate then it means your wages actually cannot keep up with inflation, it would lead to decrease in purchasing power, not to mention 3% is lowest estimate, if could go up to 4% while your GDP stagnate at 2 percent.@@CK-ur2ev
@@zenaku4they have 2% real GDP growth rates, so it’s inflation adjusted
Very interesting video!😊
Didn't expect that Drake mention, briliant
2:38 the pronunciation of Hyundai and Chebol as ''Hi-on-die" & "Chay-ball" 😂😂😂
BBLDRIZZY reference😂
The fact that the plastic surgeon's in south korea are the best in the world 😂😂😂
where
I am proud to be Korean. I still can't believe that this small country with no resources is located gdp list between giant country and former Imperial countries.
대한민국이 G7 국가들 가운데 이탈리아는 넘어선 것 같다고 생각하는데, 선생님의 생각은 어떠신지요?
넘으면 뭐해요 인구 박살나서 망하게 생겼는데...
As a united snakes colony, you have every reason to be proud.
@@soowo5942yeah, better than your country that's for sure 😂
I agree dude but have some sex too
Thats nice and all but have you heard the new Kendrick diss?
He was hidding a second child💀
I believe with hard working people, south korea can be the next China
How is The Netherlands a larger exporter than Japan?! This list has got to be counting re-exports and goods shipped through a country. Hong Kong doesn't actually produce much of anything, but it is a massively important port.
Neokolonialisme Imperialisme (NEKOLIM)
Using his logic, SK’s success was due to lack of Chinese competition back then 😂. This’s a dim witted channel.
Chaebol is just another term of cronyism
no, oligarch
a necessary evil when you're trying to start your economy from scratch
@@grimaffiliations3671 a evil that owns the entire country .
south Korea is just russia but with no putin like figure to hinder or stop their power.
@@weewoo2076
Putin is 71 years old and supposedly he can rule until his death
He may live for another 25 years but then what
@@zee9709 oligarch is also cronyism
What is the "splays" sector?
Two percent growth for a developed economy is crisis now days?
Only when its Korea. If it was an european country, they will say its booming 🤣😂
@@sadasasdas8467 LOL that is my point.
I heard China is limiting the number of K-dramas and other Korean media in the country as well.
I believe with hard working people, south korea can be the next China
6:43 "South Korea is starting to look quite a lot like Japan".
And the next video in my playlist is "Why Japan's Economy is Finally Growing Again" from "The invisible Hand" 😁
When you're at your highest,You will have the longest fall.
I believe with hard working people, south korea can be the next China
@@humanbeing888bro life in SK is already much better than China in terms of everything… gdp per capita is about three times that of China
They should pursue more expansionary fiscal policies. They need to shift toward supporting domestic demand
Korea's GDP growth for the 1st Qtr of 2024 just came out last week. It skyrocketed to 1.3% QoQ Growth... How is that stagnating? Infact, OECD just raised its gdp growth for Korea to 2.6% few days ago, which is faster even than the US.
My source is : I read it in my alphabet soup
@@TyroneLangam 😂 I think a better title for this video is: Why South Korea's economy MIGHT stagnate in 2060.. lol
@@TyroneLangamhe literally just told you where he got the source from..
@@TyroneLangam... Do you not know what the OECD is?
The video was about the ominous trends in South Korea's economy and demographics. Those trends resemble those of 1990s Japan.
May be its simple problem of overcapacity!
Very small pointer - Park is the surname, so to refer to Park Chunghee as "Hee" is very strange to hear
It's like when people refer to Kim Jungun as Kim Jung 😅
This is hilarious in the context of last week's 1Q GDP report from Korea. It beat all expected analyst predictions and the experts are struggling to explain why the economy is doing so well. It's a rich country and it's economy is doing well in comparison to other rich countries; and comparing it to poorer countries, including its own past, is absurd. This honestly feels like a doomer clickbait video.
Lolz are you high? Ask any Korean and they will say economy is really bad.
Go google most technologically advanced countries 2024, it’s official it’s Japan 🗾🎌 and it’s just the beginning. Your source is old. Stop sharing north korean propaganda 😂
@@yuzuki7531North korean propaganda is when it makes south korea look good? What?
@@ember_5657 please dont shoot cheap rockets to Japanese sea, thats what Koreans are known for!
@@moviefan005 How many countries would say their economy is doing good rn? Really hard for the entire world when food prices are all going up. Rn you just need to do the least worst and be ahead.
Actual experience any native english speaker will go through trying to teach english in south korea: the teacher will be given two employment contracts, one in english and one in korean. The native english speaker is asked to read and sign the contract "now" in the recruitment office. No, you cannot run it by a lawyer first. The english version of the contract says "this version is for translation purposes only and is not binding. Only the korean version will be enforcable". As they target teachers who don't speak korean, who knows what the korean version of the contract says. Oh, I can tell you: 6 month trial periods where the company can fire the teacher with no notice for no reason and not have to pay out *any* benefits.
If you're going to Korea to teach Koreans how to speak and read English, you should probably be able to speak and read Korean yourself.
How can you teach a foreign language when you have no experience with learning a foreign language?
@@hurrdurrmurrgurr yeah, how do you even teach someone a language if you can't speak their language
@@hurrdurrmurrgurr How many people on the planet do you think speak fluent native English and can speak Korean would want to be teaching English in Korea when they could be doing any of a number of more highly paid jobs? Samsung for example would pay you a lot of money to be able to interface between the Korean and English speaking parts of the business. Not many would want the pay of a teacher at that point.
The way it works is if you don't know any English at all then you learn from someone who understands the rules of how to write and speak English but isn't very good at it. Then once you know enough English to understand some of what is said, you get trained by people who are better at English (native speakers without an accent) who don't know much Korean. If you are teaching children, you may have two teachers, one who is fluent in Korean and can speak some English who effectively runs the classroom and one from an English speaking country who actually teaches the English.
These English speakers are mostly people who want to be able to live in another country without having a specialized skill or needing to learn the language fluently, often college students.
@@hurrdurrmurrgurr That is not, and has never been, one of their requirements.
Every facet of life in SK is stressful. Why don’t they fix that instead of trying to bail out Daewoo for the 50th time?
Similar thing here in Japan 💀
Daewoo went bankrupt... Why spread fake news?
Bailing out a company that no longer exist is impossible, so I'd say you are faking stuff up.
How much did SK make from Physical 100? And when is Season 3?
I think we should better worry about euro zone and japan according to OECD.
I believe with hard working people, south korea can be the next China
Nah, I’d say Japan is doing OK. They just have weak yen now. Have you actually looked at the devastating birth rate of South Korea? It’s unprecedented in the history of the entire human race. On top of that, we have highest number of suicides in OECD. It’s tough here.
Mmmmmmm!!!
The "STENCH OF STAGNATION!!!"
So many problems.
I believe with hard working people, south korea can be the next China
I am watching this channel from Africa and I applaud you guys for consistently trying to present the news instead of propaganda. You guys and the guy in "Warographics'' are the closest thing to unbiased news reporting especially when the mainstream media is too full of propaganda sprinkled with a little truth. Respect.
Exactly it’s like all creators have their faves when it comes to countries 😂😂
@@Joeias you can have favorites but still be critical of your favorites.
True
@@tomlxyz I understand and I do have favorites but I draw the line when it starts being propaganda
It’s a shame South Korea didn’t just do Hong Kong’s thing of mostly laissez-faire and abstaining from industrial policy.
watch the gdp decrease and gpd per capita increase soon XD
One news story on South Korea's demographic crisis said that the country's fertility rate statistic
as bad as it is masks the fact that the fertility rate in Seoul is even lower than the rate for the country as a whole.
Seoul has about half of the country's population and
I believe has a fertility rate of only
0.5 or so vs 0.72 or so for the country as a whole.
People living in cites have fewer children, especially if rents and real estate are expensive and especially if a lot of people live in apartments as opposed to in houses.
Apparently rents and real estate are expensive in Seoul snd a lot of people live in apartments.
I'm guessing that increased urbanization is one of the factors leading to decreased fertility rates around the world.
Weren't you peddling china demographic collapse theory just yesterday ?
What a loser
India had 27 life expectancy during British colonialism 27
Japan invested a lot in Korea in fact
Have you guys built toilets? 🚽
@@Jackie815Have your father come back to ur life after going out to buy milk?
@@muj970 source says his father st I'll buying milk 🤣🤣🤣
@@toyoashihara6242 yes I know the reason chaina and even usa has thriving economy because of Japan , Japanese people are hard working and very respectful whatever they did to Korean woman was bad and they have apologizeed 100 s of times and paid very heavy price....but south korea did the same with viatnamis woman during their war and s.k is still doing something like this with their own woman but they never apologized or have bones to admit the mistake only crying on Japan which is wrong......and same British colonialsm did to India they naver apologize they just make fun of p oor conditions but they naver care to return 45 trillions or Kohinoor
They should have work harder.
South korea can juat pivot to weapons making, it dosent take a young guy to move a tank turret with an indoor crane you dont need a young guy to operate a cnc machine, south korea has shown it can easily pivot with samsung already making warships
You still need engineers
I believe with hard working people, south korea can be the next China
The extreme low fertility rate in South Korea is the most urgent social problem it faces. Most South Koreans put the low fertility rate as a bigger threat to the future of its existence than the threat from North Korea. In fact the Seoul area recently broke the record of having 0.65 fertility rate. It's a very urgent social problem.
The country is completely doomed. The black death plague, a nuclear war, these would be modest problems in comparison to what a fertility rate of 0.7 will bring over the course of a few generations if sustained.
No fertility rate of seoul was 0.55 in 2023
@@user-ek5od4rl6k wow that is so fxxx up
It's all oil
Every raw material shipped in means time & resources; Every finished product outgoing means shipping cost & time. Add it up both ways and you have a time/shipping sensitive economy. Too Long Did Not Read ? Lets all learn how to . . .git 2 the point; cheers
You don't need to always grow, grow and grow. If the economy is standing still, then it is fine. And ageing is not a problem when automation is a thing.
You aren't actually looking at the problem you're just dismissing it a declining economy is not a good thing and could end with a loaf of bread costing thousands
Korean car brands and appliances are also struggling it seems....only Samsung doing well
What are you talking about? Hyundai is the 4th largest automaker in the world in sales. LG appliances are the largest selling products in asia excluding china.
It's all wrong. Except for Samsung, the companies were in very good shape. Last year, Samsung's performance was very poor, but from January to March of this year, it recovered from confirmed performance to expected performance. In particular, the performance of automobile companies has grown compared to before. Home appliances are still selling well.
East Asias China Japan and Korea are facing the same difficulties, aging and shrinking population, low birthrate, low happiness and high social stress, highly overlapped industry.
Next video: Why is every economy in crisis?
South Korea has been in RCEP for a few years and I think continued membership will force reform of the chaebol. They will have to raise productivity or go bust and the government won't allow them to go bust
Nations ovr reliance of exports will eventually go down need of the day is consumption based balanced economy , on top these nations subsidise the exports , barely making any profits , these r against immigration , which means the aging people r a heavy burden not being replaced by able bodied people who can fund the retirement cycle , most asian nations r caught in this vicious cycle.
SK shipyards are having record breaking profits year on year, their is a lot of money coming into the nation but it's even more concentrated than the zaibatsus that controlled Japan.
There's a reason dystopian works like Squid Games emphasize so much the extreme wealth inequalities.
Lol Drake isn't 37, hes 7
add the population problem and political crisis well
I believe with hard working people, south korea can be the next China
The growth rate for developed countries is about 2-3%.
The real question is, can they maintain that growth?
Japan is out of the economic funk!
Please make a new video on Turkey's economic crisis. Is there any possibilities that Turkish economy will collapse by end of this decade????? Let us know 🙂
No
Korea will be fine. They are going the same route as japan, importing migrant workers from SEA region to prop up the aging workforce. Their pay is 4 to 5 times higher than what they could earn at home, so its a win-win deal
Not realising us is the next potential candidate to fall down economically.
The reasons why South Korea is stagnating are reasonable. P.S: I created a video about one more major problem of South Korea - depression.
I believe with hard working people, south korea can be the next China
Daewoo Samsung LG Hyundai
Unfortunately Daewoo didn't survive
I remember when Daewoo suckered GM motors into buying thier motor division. Typical GM chumps.
I believe with hard working people, south korea can be the next China
@@humanbeing888 SK will have to step back like 30 years of progress in order to come down to the level of chyna.
CES
Does stagnation smell bad?
South korea just posted the second highest economic growth in the world after the US of 2.8% according to IMF and world bank.🤷🏼♂️
Korea was able to achieve rapid growth thanks to all-in economic growth, but now that it has become an advanced country, it is experiencing various social problems due to the lack of labor rights and insurfficient welfare of the weak. I think this can be the answer to the slowdown in our economy.
the lost decade of korea
Cause it’s allied with the US
As a Korean, it is true that the Korean economy is not growing as fast as it used to, at 10% per year.
However, no matter how slow its economic growth, it continues to grow each year at a faster rate than major European countries. don't worry
Major European countries have a historical development edge over Korea . It is true that the S.Korean economy has development impressively fast, but to no means can it be compared to the one in Germany, the Netherlands, France, the UK , and so on ... And no major European economy has some 20% of its GDP made by a company alone ( ie Samsung) . Not only that, South Korea has all the problems mentioned in the video, but it also seems to be an oligarchy.
@@abelandras1286who said Samsung makes up 20 percents of gdp? Its revenue is equivalent to 20 percents of gdp. By same logic, retail is many timed GDP
@@bdkim79 I guess English is not your first language, what he said is correct, when someone says made by xx company in terms of GDP it refers to revenue, not the valuation of the companies itself.
I love the idea of a Korean saying "we're all skint lads".
TH-cam algorithm
When top companies fail, governments should instead reinvest money into new government projects to sustain jobs. I understand that they obviously won't all be in the same field, but it will alleviate the job market enough. I'm tired of seeing countries spend most of their tax money on bailing out failed businesses. The money is better invested in creating government jobs so there is still room for the free market to compete and come up with more successful businesses. This practice of reviving useless businesses is what's killing economies. There's no room for competition. If you want to spend billions or trillions of dollars, put it towards somewhere useful. Even consider spending it as a stimulus for the people laid off while they look for new work. 90% of all businesses fail. There's no reason why we should be investing most of our money into reviving them.
There is nothing wrong with stagnation!
As Professor Michael Pettis, a nonresident senior fellow at the Carnegie Endowment for International Peace, often explains, countries like China and South Korea do not have an export-driven model; rather, what they have is an investment-driven model, which in turn naturally results in an export-driven model. This particular strategy of investment-driven growth is not new. The United States adopted it in the 1920s, the Soviet Union did so in the 1950s, and the Japanese did so in the 1970s to 80s. Primarily, the way that this works is that the country adopts a policy of suppressing wages through a weak currency (this is done by cycling trade surpluses into investments rather than imports, thereby creating a demand for the investment currency, usually US dollars, and an increase in the supply of the foreign currency), capital controls that force capital to stay within the country thereby giving business and government access to capital, and other direct and indirect subsidies to industry. Of course, this strategy is not free. It is a transfer of wealth from one sector of the economy within the country to another sector of the economy. Currency depreciation hurts importers, which are usually households, and helps exporters, which are usually businesses that engage in manufacturing. Capital controls and other interventions in the financial sector that artificially decrease the interest rate that depositors can receive and lenders can give out is a transfer of wealth from savers to borrowers, which tend to be governments and businesses.
Of course, by definition, if a country runs a trade surplus, some other country must run a trade deficit. In the global economy, the overwhelming country that runs a trade deficit is the United States because it is one of the few countries that has the ability to run the trade deficits that trade surplus countries force other countries to run because of their weak domestic demand that results from the suppression of wages. The United States has relatively open capital markets, good governance, good legal structures, and a deep and liquid financial market, making the US the primary target of investment from countries that run a trade surplus. Naturally, this has an impact on the United States. The United States and all other countries that run large trade deficits have one of three options: (1) they could let unemployment rise as domestic industries are destroyed, leading to workers being fired, inducing a negative savings rate domestically; (2) encourage household debt, which increases faster than increases in productivity suggest; (3) increase fiscal deficit. Most governments don't like option number (1), so options number (2) and (3) are what usually happen. However, this model only works insofar as all the major countries that run trade deficits, such as the United States, Canada, Australia, and the UK, are willing to accept the trade surpluses of countries like China, South Korea, Japan, and Germany. If trade deficit countries were to decide that enough was enough, it would result in an increase in the prices of goods from abroad becoming more expensive, however, in the long run, employment would likely increase as production increases domestically, but for trade surplus countries, it would result in unemployment as there would be an imbalance between the supply and demand within the economy, forcing trade surplus countries to recalibrate their economy, such that domestic consumption realigns with domestic production, which is a much more difficult task. In general, trade deficit countries are waking up to this realization and are becoming more protectionist. These countries are realizing that free trade is not necessarily fair trade.
For more information: th-cam.com/video/wLjrsMg7bNg/w-d-xo.html (An interview with Micheal Pettis)
US policy in 90s or WTO is the root of the problem
After watching Parasite movie, this was not a surprised. Just fulfilled prophecy
You left out the billions of dollars in aid following the Korean war
He did mention foreign aid
There is one thing I don’t understand. What do European nation do differently from Japan and Korea to stay afloat?
Officially: migrations. Unofficially: earlier demographic transition and starting to evolve some adaptations to modern society.
3:34 The IMF destroyed the Korean middle class.
Or, more realistically, the Korean government told the middle class that their patriotic duty was to pay off the debt.
They need to reunification, but they must sweep away Kim's dinasty first
Same reason every other country is. Humanity is rotten.
Solution: Bring BTS back 😂😂😂😂😂😂😂❤❤❤❤
Bye Drake
Because BTS is in the military, duhh!
That would save budget, not stagnate the economy.
@@snomcultist189How so?.
All big export-driven economies (SK, Japan, Germany, China, etc) are suffering with the increase in protectionism from deficit countries (due to China overdoing the export game)
OK
If you don't have a young population then just forget about productivity, S.Korea is the next Japan
having high IQ helps
I've been living in South Korea for almost a decade and I witness that people are fed up with far right politicians. I guess people often forget that South Korea's is traditionally a very right wing society due to military culture seeping into civilian aspects of life. So, even the most pro-socialist South Korean legislative candidate is a moderate right wing from an American perspective.
It's never a good idea to view South Korea with a very Americanized or western political point of view.
I've heard a couple times on the internet the claim that (young?) south Korean men are quite right wing and anti feminist. Is that true?
usa is also very much more right wing than western europe
I learned about that when i watch moon channel video on south korea gender wars also salari
@@koks49045 I mean if you think about UK we have conservatives that didn't stop mass migration, they didn't protect statues of Churchill and so on, didn't do Brexit right and had to change PMs 3 times due to it, and are to scared to even touch social issues. Like the only thing they 'conserve' is the money of the rich lol.
Extra funny because all the American parties are considered far right wing compared to all the parties in *my* country. So what does that make the South Korean candidates?
Id say the multiple zombie outbreaks has been a contributing factor. Loads of Zombies in South Korea.
fact check: Korea doesnt have the lowest birth rate. Ukraine does
Ukraine birth rate is the second lowest in the world
South Korea still has lower birth rate however by 2025 Ukraine birth rate will decline below south Korea at this rate