The Economist homework no.1
Asia: Duty calls; South Korea talks of unification
August 21st 2010-09-01
Part I – Summary
The article “Asia: Duty calls; South Korea talks of unification” is mainly talking about that south Korea and north Korea needs to be unified. In order to be reunified the president of Korea who is Myung-bak, Lee declared that South Korea needs to take more taxes for the reunification. The cost of reuniting will be a load of money and Koreans are confused by this speech of the South Korea president. The living standards right now of North and South Korea has too much difference, to give an example its describing Korea as an developed rich family and the North can be described as an undeveloped poor family. South Koreans didn’t really understand what the president was up to. Park Jie-won, the leader of the opposition Democratic Party, said that the president is trying to collect unification taxes in order to end the Pyongyang regime. But why is it Koreans that needs to collect the unification taxes, even though South Koreans naval ship the “Cheonan” were sunken by a torpedo of the North. The issue of the Cheonan naval ship was huge, because almost all the South Korean marines were dead when the torpedos of the North stroke the naval ship. Why do the South Koreans need to collect the tax even though we were attacked and many innocent marines lost their precious lives? There is a separated explanation of the tax which exists by the Liberty Forward Party, and they state that the South Korean governments are trying to fill up the hole that they used by the unification taxes. Also they declare that the unification tax has nothing to do with the unification that the South Korean president is seeking.
Part II – Relevance to Macroeconomics Concepts
There are many concepts related to this article which can be opportunity cost, tradeoffs, and incentives. The South Korean governments are trying to collect taxes...