FEATURE
12
www.gwangjunewsgic.com
October 2020
Franklin D. Roosevelt and Winston Churchill in Teheran,1943. (commons.wikimedia)
Don’t Waste a Crisis Written by Arlo Matisz
T
he COVID-19 pandemic is one of the most significant events in modern economic history. It is so significant that I feel I should use capital letters to describe it, as I would for other major events such as the Great Recession, the Asian Financial Crisis (or “IMF Crisis” as it’s referred to in South Korea), or the Great Depression. Though still ongoing, the pandemic’s impact has already been so large that the effects will be felt for years to come. This is the nature of economic events: They evolve over time. By taking a closer look at what is happening here in South Korea, by examining households, small businesses, larger firms, and the government, one can see the interconnectedness of the
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economy, why the effects are so large, and what good can come from how the crisis is managed. Let’s start with an average Korean household. Of course, it’s hard to imagine an average, so I’ll flesh it out a bit: Mr. and Mrs. Kim, with their two children. Mr. Kim works at a large car factory that produces goods for the domestic and international markets. Mrs. Kim owns and operates a small hair salon. Their children, ten and four, attend school and preschool. How is their household affected by the pandemic? Mr. Kim’s job is in trouble. The pandemic has disrupted global transportation networks that move goods from country to country. It has also reduced
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