The old man of Korea, refresh my perception of “East Asia hell mode

East Asians are really suffering.

Because the domestic epidemic prevention and control is basically completely liberalized, so I will look at some overseas economic data after the epidemic has been liberalized in the past two days, and the result is that, without comparison, as an “East Asian”, I immediately felt the “damage”, and also let me have a new understanding of I have a new understanding of the “East Asian hell model”.

First of all, what do you mean by “East Asian Hell Mode”?

Simply put, in the past half century, people in Europe and the United States white people, including Canada, Australia and New Zealand, life is really easy, working 5 days a day, five or six hours a day on the shift, to the point on the horse up and down, in addition to Saturday and Sunday, there are 1/10 or more days a year are holidays, leaving a lot of time to drink a little wine, fall in love, sunbathing, with their families, a random white collar blue collar middle class families. Want to travel to which place on earth, basically is to say go……

The most important thing is that the working hours are so short; people’s income is still much higher than East Asians, the real money and leisure.

As for most countries in Africa and Latin America, of course, the income is far less than the white people in Europe and the United States, but the same is the pressure of life is small, working hours are not long, every day like playing, time passes in a blur, belong to the idle without money master.

In contrast, we Chinese, North Koreans, Koreans, Japanese, intelligent, hardworking, hardworking, disciplined, which is recognized around the world, however, since the East Asian countries into the industrialized society and join the world trade system, people are generally highly nervous, whether it is education, work, buy a house, medical care, child rearing, life is not the usual pressure, even, from the kindergarten period, the Began the whole society competition and involution……

In fact, if we discuss the role of different economies in maintaining contemporary civilized society, whether it is the scale of industrial development, or the area of industrial parks, or the amount of industrial output, or the weight of industrial output, East Asia, nowadays, is properly the global production and manufacturing center.

Not to mention the number, weight and scale of industrial products, even taking into account that Europe and the United States produced some high value-added products, according to the new manufacturing output value, today more than 40% of the world’s manufacturing output value, are produced and provided by East Asia’s China, Japan and South Korea.

In 2021, for example, of the total global manufacturing output of $16 trillion, the manufacturing value added by “China + Japan + Korea + Taiwan” will reach $6.6 trillion, accounting for 41% of the world.

Looking at the above table, the manufacturing value added of mainland China alone is close to the sum of EU + US; Japan is second only to China and US; and South Korea ranks fifth after China, US, Japan and Germany, and exceeds India with 1.3 billion people; even our small Taiwan, the manufacturing value added is almost on the same level with UK, France and Russia.

With such a strong manufacturing capacity, the life of East Asians, according to history, should definitely be the richest, most leisurely and relaxed society in the whole world.

Unfortunately, the reality is just the opposite, otherwise, how can it be called “hell mode”?

This is not the problem of the level of economic development, has entered the developed society of Japan, South Korea, Taiwan, Hong Kong, and has been considered more developed in mainland China’s first-tier cities, without exception, are in this state, Japan’s GDP per capita is even once far more than the United States, but the labor hours are generally long, most people feel that in order to a little money in the life of the work, little spare time, at every turn are rumored to have died of overwork There are news of overwork deaths at every turn, not to mention global travel at will.

So, which economic data has given me a new understanding of “hell mode”?

The answer is…

A comparison of the labor force participation rates of the 65+ population in Europe, America and East Asia before and after the epidemic.

In the US and Europe, this is indeed the case – after the outbreak in 2020, the labor force participation rate of 65+ in Germany, UK, US, and Canada generally declined, especially in the US, which is extremely markedly.

In East Asia, however, the opposite trend is observed, as the labor force participation rate of 65+ year olds actually starts to rise after the outbreak, including in Japan, Korea, China, and Taiwan. Some may think that this is due to the fact that Japan and Korea are aging more severely than Europe and the United States, so the labor force participation rate of the elderly has risen – the problem is that Japan, which is also an advanced economy and has the most severe aging, has not seen a significant increase in the labor force participation rate of the elderly, but rather Korea, where aging is not as severe, has seen the most significant increase.

Why is this case?

There are two reasons.

One is that the Korean government gave out less money during the epidemic.

The other is that the retirement assets of Koreans are too low.

At the beginning of the outbreak, South Korea followed the example of the U.S. in giving money to the people, but compared to the U.S.’s largesse, South Korea was a bit stingy in giving money. the first round of family benefits was given in May 2020, covering 70% of low- and middle-income families, and was given by household, with an average of about 250,000-400,000 won (1,450-2,300 Yuan) per person; in July 2021, a second round of benefits was given, covering 90% of the population except for the high-income group, with an average of 250,000 won per person, equivalent to 1,450 Yuan.

In other words, during the epidemic period of nearly three years, all low- and middle-income Koreans will receive an average of only RMB 3,000 per person from the government, which is equivalent to only 1.3% of Korea’s GDP per capita of US$32,000, which is more than nothing for most Koreans.

Since it is better than nothing, many elderly Koreans have insufficient pensions and are living on short-time jobs, so they have to rush to work under the epidemic.

In contrast, people the U.S. government in April 2020 a shot, is the low- and middle-income families, each adult $ 2,000, children $ 1,200, and then, in 2021 there is a second round of subsidies, $ 2,000 per person ……

No, no, no, you don’t think that’s all, that’s the small end of the money the US government gives out!

Since the outbreak of the epidemic, the U.S. federal government has directly increased the amount of unemployment benefits by an additional $600 per week for more than a year, which means that every unemployed American adult during the epidemic, even if they don’t go to work, can get an additional income of more than $30,000 in the past 2 years, which is equivalent to more than 200,000 RMB! ……

200,000 RMB, you say, is not enough for you to spend 2 years?

Let me tell you, that, alone, is not the main reason for the 65+ labor force participation rate splits in Korea and the US.

The thickness of the old man’s wallet is what determines the ability of Americans to “retire early” with style and exit the labor market, while the elderly in Korea, even under the ravages of the new crown, must grab jobs with young people in the job market ……

Currently, the size of OASDI is about $1.1 trillion, which is the smallest piece of Americans’ pensions, while DB plans (defined benefit pensions) and DC plans (defined contribution pensions) are the bulk of Americans’ pensions, which currently add up to nearly $20 trillion, almost equal to the U.S. GDP; not considering commercial pension insurance, the assets on the U.S. IRA account alone are has exceeded $12 trillion……

In addition to OASDI, a significant portion of other pensions are invested in the U.S. stock market, and it is well known that the U.S. stock market for the last 40 years long bull, the American pension assets rose, the thickness of the wallet is the world’s first, to date, pension assets have been equivalent to 170% of GDP – of which, not the big head of IRA, there are 800,000 million dollars account, in this case, you say that the United States 65 years old + elderly, there is no qualification to retire in style, there is no qualification “early retirement”?

This is the real reason why the labor force participation rate of 65+ year olds in the US has been declining rapidly since 2020

In contrast, the total pension assets of Koreans is only 32% of GDP, so if you don’t work, what do you eat……

 

 

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