I Became Park Jeong-ui’s Nephew - Chapter 179



Only Krnovel

He became Park Jeong-ui’s nephew. – (179)

“If this continues, America will perish. Everyone needs to come to their senses.”

This is the United States, and an economic expert has given the US economy a death sentence.

According to the National Bureau of Economic Research (NBER), the United States has already entered the pre-stagflation phase.

The biggest problem is that the aftereffects of artificially suppressing prices are now appearing. The United States achieved high growth of over 6% annually in the 1960s based on a manufacturing boom.

The problem is that this phenomenon fuels rising prices and wages.

President Richard Nixon had controlled inflation and wages for a year, but the result was a 12 percent spike in inflation this year.

What followed was a simultaneous decline in stocks and bonds.

It is common for bond prices to rise when stocks fall, and for stocks to fall when bonds rise.

When the economy is good, investors tend to invest in stocks, and when the economy is bad, they tend to prefer real values.

Although U.S. bonds are also investment products, they have been treated on the same level as real assets over the past 10 years because the U.S. economy has grown by 6%.

But what does it mean that these two are declining together?

First of all, even if wages are raised this year, it will not be immediately reflected in prices.

The effect takes place over time, but the US artificially controlled prices for a year to control inflation.

For a while, prices seemed stable,

In fact, the Nixon administration boasted that we had prices under control, but that didn’t last long.

“No, can’t you raise prices?”

“How can companies make a profit like this?”

The true face of the price control policy revealed after a year

Because they were not making any profits, companies laid off workers, and as the manufacturing industry fell into a slump, there was the side effect of prices rising due to a shortage of supply.

If the US had continued to lower energy prices, its manufacturing competitiveness would have remained intact, but the Middle East has now risen up and said it cannot do as it pleases.

This is the problem,

Energy prices are continuing to rise, the U.S. government is imposing price controls, and companies are laying off workers in a madhouse.

How can we maintain our manufacturing base in this situation?

Manufacturing accounts for 40% of all employment in the United States, and when this industry faltered, the growth rates of not only American businesses but also the U.S. government were shattered.

This is why stocks and bonds fell at the same time.

So how can the US escape this trap?

The U.S. government also made a mistake here.

“If we raise prices, companies will hire workers again. In the future, the U.S. will focus on corporate growth and suppress inflation.”

So did this work?

If it had worked, the Fed wouldn’t have raised interest rates to 12.5%.

The Fed demanded that the government tighten its monetary policy, saying that the current situation was caused by the government’s excessive quantitative easing policy.

Do politicians know how much money is currently in the market, having spent money on selling the books and fighting wars?

The United States is in this state because politicians without economic sense are in power.

“We need to win the election, so shouldn’t we spend more money?”

“That’s right, and I think prices are rising too much these days, so let’s control businesses so that prices don’t rise.”

Literally the logic of miracles,

How come prices don’t rise when money is being spent?

Politicians’ economic concept is to win elections by spending money, abusing populist policies, and using government power to control prices.

As the burden of the aftermath falls on the shoulders of the entire United States, the Federal Reserve Chairman issued a chilling warning to American society.

“If interest rates are not fixed even like this, they could go up to 15%. The situation is serious. In the worst case, the U.S. may not grow at all for the next 10 years.”

The side effects of boosting the economy through quantitative easing are now appearing.

Is the worst-case scenario that the U.S. economy, which has grown by 80% over the past decade, will come to a standstill for 10 years?

Everyone was skeptical, but many people have already started to feel it in their skin.

“Huh? Why doesn’t the government release money?”

“Why aren’t companies hiring? And why aren’t interest rates lowered?”

“No, there’s nothing in the mart!! There’s nothing!! How can that be?!!”

America is literally in a panic,

Everyone took out loans to buy houses and cars and became middle class, but the interest rate is now 12.5%.

With unemployment at an all-time high in the past 10 years, how will Americans who have lost their jobs pay off their debts and support the economy?

That’s why financial companies are going bankrupt one after another.

But the government has no money to spend.

The Fed is demanding fiscal tightening, but where is the government going to have the money to support financial companies? It’s time to get out of the illusion created by the debt feast, but the tunnel is too deep and dark.

The U.S. economy is in a state of cascading collapse, starting with manufacturing.

The aftermath even affected Korea.

***

“America is in chaos right now?”

“Yes, there is a chain reaction of collapse starting from manufacturing to finance.”

“Whew~ The timing is incredible.”

The same routine that repeats itself today,

I breathed a sigh of relief when I heard the rumor from America.

The Korean economy, which has been running solely on the US, has also enjoyed a sweet share of the US’s annual growth rate of over 6%.

The question is how long this will continue,

It is only natural that quantitative easing will eventually have side effects. However, the U.S. government was too complacent about this issue, and this is what happened.

‘It’s dangerous to rely only on the US, so let’s diversify our investments elsewhere.’

This is one of the reasons why I joined hands with the Soviet Union.

The US government’s actions so far have been too precarious for it to concentrate its efforts in one place.

The final blow was that the government had been holding back inflation for a year, and who could have guessed that in that short period of time, American manufacturing would be devastated?

The economy is something that can go down the drain with a momentary misjudgment.

If you don’t do this right, you’ll end up in hell that day.

“What can politicians appeal to the people? Spending money? Even children can do that. The important thing is to grow businesses and maintain jobs. What do politicians have to offer?”

Honestly, when I look at politicians, I wonder if people are really happy.

If someone were as good at singing as a celebrity and was handsome, it would be nice to just look at them, but that’s not the case with politicians.

He looks like he is the same guy, and all he does is stand on stage and shout loudly.

Don’t American politicians know that they are unpopular, so they spend money to do favors?

If the government declares that it will stop inflation, will it be stopped?

Even a dictator cannot do that.

The economy is a task that must be completed by fitting together the scattered pieces of a puzzle. It is something that fools who just throw money around cannot do.

I’ve been doing that for 20 years and I’ve been getting public support so far. I’m not handsome and I can’t sing well, but I’ve been able to show off what talent I have.

[Korea’s inflation rate this year is 7.5%]

[Economic growth likely to decline to 4.8% due to economic shock from the US]

This is something I expected.

How can Korea hold on to the United States, which it has been holding on to, when it is shaking?

However, thanks to the new lifeline of the Soviet Union, we are holding on somehow, and the economic cooperation agreement worth 150 billion rubles with the Soviet Union will be effective next year.

Until then, I guess I’ll have to endure the abuse.

As expected, public opinion began to speak out.

“Prices have risen by 7%, but wages haven’t risen by as much?”

“We can only survive if we raise our wages.”

“We have established economic cooperation and development with the Soviet Union, but it will take about a year for the effects to be seen. Until then, let’s all be patient.”

The problem is that the people cannot wait for this one year.

If prices rise by 7%, wages should rise by the same amount immediately, but since that is not happening, everyone is dissatisfied.

Then doesn’t that mean the Korean government and the ruling party are not doing politics properly?

The privileged class, feeling a sense of crisis, demanded an increase in government spending.

“Sir, if we continue like this, the opposition party is likely to win the votes. How about throwing money at it right away?”

“Who can’t do politics that way? Are you all doing this because you don’t want to be cursed at by the people?”

“that… .”

“Politicians are there to get cursed at. If you’re going to turn elections into a popularity contest like that, bring in a good-looking person and have them sing. Don’t we do politics because we know that’s wrong? Just wait a little bit. If we wait, we’ll be proven right.”

In fact, the ruling party’s approval rating fell to the 50% range in the wake of the economic crisis that originated in the United States.

This is also something that the vested interests have to accept. They have been sucking honey from the US all this time, but now that the US is shaking, isn’t their approval rating shaking?

It is our responsibility to diversify our economic structure before this happens.

But if you wait a little bit, it will eventually rebound.

The problem is that this is not as easy as it sounds.

The opposition parties, which lack administrative ability, let alone economic sense, were busy criticizing vested interests.

“Why is the government not doing anything when the economy is in trouble?!!”

“What do you know?!! You just sit there and criticize, but we are looking for answers!!”

“Isn’t that showing no results?!! Is it okay to just say that you’re trying!!”

This is the tragedy of the ruling party.

If you take power, you have to achieve results. What difference will it make if you make excuses? No matter what criticism you receive, the best thing to do is to clench your fist and endure it.

In the midst of this, an article criticizing the head of state even came out.

[Daehan Transportation made 8 trillion won in profits this year, but only paid 1.9 trillion won in corporate taxes. The remaining 6.1 trillion won probably went into the pockets of the head of state. Should only his own wealth grow when the people are struggling?]

When I said, “Yes, yes, yes,” the reporters climbed up to my head.

I immediately published a response article.

[It is very unfortunate that Korea has become an economic powerhouse, but there are still ignorant people who do not even know the basic concepts of economics working as reporters in this country.

Is the corporation’s money my money?

Why do you write an article like this, leaving out the fact that corporate money is taxed again when distributed to individuals?

As the article states, Daehan Transportation made 8 trillion won in profits, of which 1.9 trillion won was paid in taxes. Of the remaining 6.1 trillion won, about 8 trillion won was paid out as dividends, of which 3 trillion won was returned to the government as taxes.

The remaining 5 trillion won was reinvested in improving distribution networks and advancing manufacturing technology.

The reason why the manufacturing industry in the United States is struggling is largely due to government policy failure, but it is also because companies are not investing their profits in technological advancements in a timely manner.

The public seems to want all that money spent on wage increases, and I would never do that.

Time will tell whether I was right or wrong.

If you still don’t believe me after I said this, then impeach me right now.

If the people do not want me, I will gladly step down from this position.]

This is how I hit the drain.

I have shown you over the past 20 years that if you don’t trust me, you should just leave. I have no choice but to explain the economy to reporters and opposition figures who are just talking nonsense, and they won’t understand. I have decided to just accept this situation.