South Korea's Economic Identity Crisis and Future Challenges

The current South Korean economy faces a long-term identity crisis, marked by stagnation and rising inequality.

### The Evolution of Economic Thought
The country is currently lagging behind in economic progress and may need **thirty years to implement effective policies**. Since the 1980s, a monopolistic school of thought, particularly **neoclassical economics**, has dominated the field, leading to a **regression in economic diversity**. The classical school, introduced by Adam Smith, emphasized **self-interest and competition in the market**, while the neoclassical perspective focuses on **individual rational choices**, accepting the **existing distribution of income and power**.

### The Impact of Wealth Distribution and Entrepreneurship on Society
The president's family and their friends are profiting from oil, causing a **stagnant standard of living for citizens**. The theory of new distribution aims to make changes without altering **basic property and power relations**, appealing to those with **teams and money**. The role of entrepreneurs in company success has evolved, with a focus now on the **collective effort of workers, engineers, scientists, and government support**, as seen in South Korea's Hyundai Motor Company.

### The Impact of Government Support on South Korea's Auto Industry and Current Economic Challenges
Hyundai and Kia's success in the automobile industry was driven by government support, including **funding for engineer training** and a **ban on car imports**. The U.S. government's investment in technology also played a crucial role in **Silicon Valley's development**. Currently, South Korea is facing high restaurant prices and rising costs across industries due to global factors like the **COVID-19 pandemic** and **Russia's invasion of Ukraine**, leading to **increased interest rates** as a response to rising prices.

### The Impact of Rising Interest Rates on the Economy
Rising mortgage interest rates have led to **reduced consumer spending**, causing a ripple effect on businesses and farmers' incomes. The current economic situation has not resolved the **2008 financial crisis**, with little reform in manufacturing since then. The artificial sustenance of the economy through **low interest rates and quantitative expansion** has resulted in a precarious situation, with rising rates now **exposing cracks in the system** and contributing to a **long-term identity crisis** for the Korean economy.

### The Long-term Identity Crisis and Its Impact
The country is experiencing a **long-term identity crisis** due to rapid economic development, leading to a **disintegration of the extended family system** and social transformation. This has resulted in **stagnant economic growth**, a **flawed welfare system**, and **alarming rates of suicide, elderly poverty, and gender income disparity**. The young generation is heavily investing in stocks and cryptocurrencies, driven by the belief that their **future is determined by their parents' socioeconomic status**.

### Advocating for Change in Exam Papers and Welfare Systems
Young people should protest for better exam papers, demanding a change that reflects a **fairer competitive society**. The country's limited welfare state and changing social dynamics have made it harder for individuals to succeed, highlighting the need for **systemic reform**. Collective efforts and raising voices are crucial for advocating change, addressing issues like **gender discrimination and lack of childcare support**, to create a **more equitable society**.

### Economic Insights: Addressing South Korea's Current Challenges and Future Prospects
* 📉 "Our country is not at the level of fifth-place students; we are still at the level of **tenth or fifteenth-place students**, so it's **premature at this time**."
* 📚 Historically, until the 1980s, various schools of thought in economics coexisted, but since then, the **neoclassical school has dominated**, leading to a **stagnation in economic discourse**.
* 🍽 Adam Smith's classical economics introduced the concept of the "**invisible hand**," emphasizing that **self-interest can lead to societal benefits** without government intervention, known as **laissez-faire**.
* 💼 The classical theory identified a class structure where only **capitalists and landowners could save**, while workers lived **paycheck to paycheck**, highlighting **systemic economic inequalities**.
* 🌍 The neoclassical perspective focuses on **individual rationality**, but it fails to address the **systemic issues of wealth distribution and power dynamics**, as exemplified by the situation in **Equatorial Guinea**.
* 🏭 The role of entrepreneurs is crucial, but modern businesses require **collective efforts from workers, engineers, and government support**, as seen in South Korea's automotive industry.
* 💰 The current economic landscape is marked by **rising prices and interest rates**, exacerbated by global events like the **COVID-19 pandemic and geopolitical tensions**, leading to a **decline in consumer spending**.
* 👶 South Korea faces a long-term identity crisis characterized by **low birth rates, high poverty rates, and inadequate welfare systems**, necessitating **systemic reforms and a collective push for change** to ensure a **fair competitive society**.

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