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Korean labor market in rapid transition

15 0 12

By Peter S. Kim

Last month U.S. President Joe Biden got a much-needed win with the House of Representatives passing the $1.75 trillion stimulus package for social safety net and climate change initiatives. The bill now moves to the U.S. Senate, which could be the biggest challenge for President Biden battling a plummeting approval rating after less than a year in office. The Build Back Better bill's passing came days after President Biden signed a separate $1.2 trillion bipartisan infrastructure package to repair bridges, roads, tunnels, and other transport systems.

The fiscal stimulus packages continue to roll on despite the fears of inflation. The fiscal stimulus resembles the "roads to nowhere" initiated by Japan in the 1990s and China during the subprime crisis in 2009. Government spending is raising concerns of long-term repercussions in a world increasingly dependent on debt.

The U.S. is an economy already in transition from manufacturing to services, and the pandemic is an inflection point for another transition for its labor force to move from traditional services to the next phase of job creation. Government spending is halting the efficient labor and capital allocation function, and it could be years before a balance is reached (if at all). Policymakers........

© The Korea Times

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