I owe 20,000 won to the town and spend 900,000 million won.

President Moon Jae-in announced on the 9th at a meeting in which the leadership of the Democratic Party was invited to the Blue House, ‘there was no time that people wanted for agreements between opposition parties, agreements between the women, the night and the government, or between the government and the National Assembly. ‘ [연합뉴스]

The second emergency disaster grant goes in the wrong direction. The purpose of “Personalized Disaster Assistance” (meeting of President Moon Jae-in, boss and aide on the 7th) has vanished. He spends nearly 1 trillion won to spread the communication expenses by 20,000 won, as if they gave Chuseok pocket money. It is the “populism of the cost of communication”. Meanwhile, the fiscal deficit is expected to exceed 100 trillion won.

On the 9th, the party and government announced that they would hold a meeting with the Democratic Party leadership at the Blue House at the invitation of President Moon, and that they would provide communications costs of 20,000 won to those 13 and older. Chief Democratic Party spokesman Choi In-ho said: “Executive Director Nak-yeon Lee called for collective support and said it would be comforting to provide communication expenses to Corona 19 tired people, even if the amount is not large.” . Spokesman Choi said: “(In response to Lee’s comments) President Moon said, ‘I have the same idea. As people’s non-contact activities have skyrocketed due to the crown, it would be better to provide support for communication costs without distinction ”.

As a result, the original plan of paying only those aged 17-34 and over 50, excluding those aged 35-49, was abolished. Against selective pay, there was growing opposition to people in their 30s and 40s, who are classified as key supporters of the current government. It is noted that the political calculation method worked. People’s Power spokesperson Bae Jun-young said, “I thought it was intensive support for suffering small business owners and freelancers, but what is the lump sum payment?” He said.

According to demographic data from the August resident registry, those over the age of 13 (46.4 million people) represent 89.5% of the total population. As the number of support targets increases by more than 40%, the budget burden increases significantly. If the number of people is simply multiplied by the amount of support, it is expected to increase from 650 billion won to 930 billion won. This is more than 10% of the half to half 7 trillion won disaster grant budget that must be augmented by debt.

As a result, there is the possibility that money for those in need of intensive support may be reduced. The government initially planned to spend around 3 trillion won for the new desired fund for small business owners, 2 trillion won for emergency employment stabilization support, and allocating the remainder for living expenses for low-income families, and the second child care coupon budget. President Moon also promised on the 7th that he will focus on the sectors and classes with the most damage and support as thick as possible.

If you do not reduce the other sectors, you will have to increase the size of the fourth supplement by increasing the debt. As a fourth complement, the ratio of national debt to gross domestic product (GDP) at the end of this year is close to 44%.

200,000 won per child under elementary school age … Attachment also up to 2 million won

From the right, Nak-Yeon Lee, Tae-yeon Kim and Chairman Han Jeong-ae of the Policy Committee. [연합뉴스]

Ahn Dong-hyun, a professor in the Department of Economics at Seoul National University, said: “It is very effective to give more to people who have suffered real harm by supporting detection. This is a problem caused by this initiative ”. It is also criticized that it is questionable how much 20,000 won will be useful for living. Sang-bong Kim, professor of economics at Hansung University, said, “If you provide 20,000 won, it is the money that goes directly to the news agency.”

Meanwhile, the Party and Cheong also brought out the ‘Good Rent’ card again. President Moon ordered a plan to extend the rent cut tax credit. However, in Seoul alone, more than 20,000 stores closed from April to June and there is no room for rent cuts. In Seoul’s Gwangjang Market, which campaigned to cut rent by 20%, restoration to its original condition has increased since July. Dae-Jung Kwon, a professor in the Department of Real Estate at Myongji University, raised doubts about the effectiveness of the rent, saying, “There is no landlord who can reduce the rent from 2 million to 3 million won to receive between 200,000 and 300,000 won. won in tax benefits. ”

Disaster grants were described. Small business support that meets the purpose of personalized emergency support has been set at a maximum of 2 million won. It targets 12 high-risk facilities that had to be closed according to government quarantine guidelines, such as PC cafes, singing practice centers, health clubs, large academies and buffets. In other industries, whose sales have declined significantly compared to last year, desired new funding will be provided for small businesses of up to 1 million to 1.5 million won. Based on data from the National Tax Service reported last year, a plan is being promoted to immediately select and pay for targets without additional proof of income, considering the increase or decrease in sales. Entertainment establishments are excluded.

A second part of the Corona 19 Emergency Employment Security Grant will also be awarded to special type workers (special advisers) such as substitutes, freelancers and unpaid graduates. Up to 2 million won is expected to be backed by increasing the amount of the first 1.5 million won (3 months every month 500,000 won).

Child care coupons that were paid in the early days of the Corona 19 crisis will also be posted again. The per capita amount will decrease from 400,000 won (4 months of 100,000 won per month) to 200,000 won, but the payment targets will increase. It widened the range from being limited to those who are entitled to the 7-year-old child benefit to primary school students. It reflected the point that difficulties at home are great due to the closure of elementary school and the conversion of online classes. The payment method will also change from card points to cash. A plan is being coordinated at the last minute to provide a 500,000 won monthly job search allowance to young people who have not worked for a long time. Details of major policies, etc., will be announced by the Ministry of Strategy and Finance after an emergency economic meeting chaired by President Moon on the 10th.

Sejong = Reporter Cho Hyun-suk and Lim Seong-bin, Seoul = Reporter Kim Hyo-seong [email protected]