Recently, demonstrations by French high school students in protest of a shortage of teachers and poor educational conditions have spread into nationwide protests. Last weekend, protesters who were also fighting against soaring living costs and prices of fuel joined the movement. Tens of thousands of people took to the streets, with violent protests including occupations of town halls, arson, and robbery of stores.
On the 19th, the South Korean newspaper 'Chosun Ilbo' published an editorial stating that France, which is consumed by youth's anger, is also the future of Korea, which has a 'money addiction'.
The article argues that the root of French protests lies in extravagant fiscal policies. France’s public spending accounts for 57.2% of its GDP, which is higher than the eurozone average of 49.8%. The country’s national debt stands at 120% of GDP. Despite increasing social security expenditures such as pensions, which continue to grow like a snowball, attempts by successive governments to reform these policies have been repeatedly thwarted by unions and political opposition.
The editorial says that French politicians, regardless of their left or right parties, are all vying for populist promises such as tax cuts and lowering the age of pension eligibility. In the end, the Macron government, which was blocked by the political establishment, chose education budget cuts, which are considered the least controversial. The future of students, who have no voting rights and no representation in their political affairs, became the first victims. Rats and cockroaches rampaged in classrooms, heating and cooling facilities were inadequate, and the anger of neglected students turned into a trigger for violence. Of the more than 6,800 people arrested during the protests, 86% were minors without voting rights.
The article states that international financial markets view France as having the same fiscal crisis as southern European countries such as Italy and Greece. There are warnings that the collapse of the domino effect originating from France’s national debt market could turn France into a fuse for the global economic crisis. France, once a economic powerhouse synonymous with art and romance, has now become Europe’s "sick man."
"The Korean Daily" is full of worry: "France's economic and social crisis is no different than one that we have to face." South Korea's national debt has recently increased by over 100 billion won (approximately 5020 billion yuan) each year, exceeding GDP at a rate of 50% this year. Although this ratio is lower than France, the problem lies in the speed.
According to reports, in the past decade or so, South Korea has seen the proportion of national debt rise at the highest rate among countries that do not use their main currency. In the future, the fastest aging population and lowest birth rates worldwide will weaken South Korea's tax base, while also leading to a sharp increase in pension and welfare expenditures. However, politicians still cannot shake their addiction to excessive welfare spending. During election seasons, promises of spending hundreds of trillion won on campaigns are common, as politicians avoid cutting government spending out of fear of losing votes.
The editorial points out that while the current prosperity of semiconductors is supporting the Korean economy, once that period ends, the populist economy, which has always relied on debt, could collapse. “If we do not consider the time brought about by semiconductor prosperity as the golden period for the Korean economy to take off again, and focus instead on structural reforms such as labor, education, and regulation, then the next generation in Korea will face the same situation that French students are currently experiencing.”
