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The governor of Gyeonggi, Lee Jae-myung, continues to attack intensively day after day the criticism from the Korean Institute of Tax and Finance that the issuance of local currency offsets the economic effect. The day before, he blasted the criticism as ‘poor’ and ‘wasting the people’s blood tax’, then tried to disprove the reason for the wrong advertisement. In particular, the Gyeonggi province research institutes also joined in the criticism, saying: “Insolvent and exaggerated research reports.”
◇ Lee Jae-myeong “Nationally owned institutions criticize central government policies”
On the night of the 15th, Governor Lee posted a post on his social media titled ‘5 Reasons Why the Tax and Finance Research Institute announced the local currency degradation.’ “Local monetary policy was completely denied as a key policy of the current government” for the reason that the presentation of the government-run research institute was incorrect. It is strange, “it was dismissed as a loss of budget” and “inconsistent with the research results of other national research institutes.”
Governor Lee said, “The Moon Jae-in government has been supporting the local currency in earnest since 2019.” In particular, the main theme of the research is that ‘by making use of small shops in alley shopping areas instead of large markets has reduced the welfare and utility of consumers’ “It completely denies the central objective of the policy of the Moon Jae-in government to promote small self-employment. “
Furthermore, “a strict investigation and reprimands are necessary to see if the Research Institute on Taxation and Finance, which selects and studies projects in consultation with the Ministry of Finance, lacks punctuality and integrity, contradicts the government’s political position and presents the research results, ignoring the real economic effects at this time. “Do it.”
◇ Research institutes affiliated with Gyeonggi-do are also controversial
The same day before, about an hour before, ‘the economy is in circulation … I published a post saying that it is frustrating to give water to the stream, but to give it to the reservoir and say that the water does not flow.
Governor Lee said: “The economy is a cycle. No matter how large the total quantity is, the economy is dead, and if the total quantity is at least fast in circulation, the economy will survive. “He noted:” I am concerned about the stubborn attitude of state research institutes and economic bureaucrats who they depend on the local currency, which is a promise of the Moon Jae-in administration and one of its core policies. “
The Gyeonggi Research Institute, a research institute affiliated with Gyeonggi Province, also announced a rebuttal statement.
The Gyeonggi Research Institute said: “With the foreseen premise and the exaggerated logic, the general sense of the local currency is nullified. The report of the Institute of Tax and Finance presents numerous assumptions and analysis results that are inadequate from the data used and is out of fact “. Said. Furthermore, “As I presuppose the conclusion and try to complete the process, I wonder if the irrational development of logic and exaggeration followed. It is advisable to do research based on adequate data and then publish a report. “
Meanwhile, the Korean Institute of Taxation and Finance analyzed that the local currency, which can only be used in a specific region, causes various losses and costs, offsetting the economic effect.
A related report explained that most local governments promote the sale and distribution of local currency, which is less useful than the same amount of cash. He analyzed that the difference is being subsidized by the government, and out of the 900 billion won subsidy, the net loss that cannot be transferred to consumer welfare is estimated at 46 billion won. The total net economic loss, which is the sum of the subsidy losses and the cost of operation in local currency, is estimated to total 226 billion won this year.
