By Well South Korea is finding out that increasing welfare means you have less money for other stuff:
As the central government of Korea has scrambled to implement new welfare policies, local governments are forced to cut money that is needed for important policies.
The Gangbuk District Office in Seoul said it has cut a total of 7.8 billion won ($6.92 million) that was supposed to be used for education and local street maintenance.
As the Gangbuk office has decided to cut funding, the money for running a public child care service center has been reduced as well, and officials in Seoul’s local governments lamented that they are forced to cut additional funding in order to support the central government’s welfare policies.
The Gangbuk office said that it has cut a total of 165 million won that was designed to support one of its local child care service centers, the Nightingale Day Care Center, which takes care of babies up to four years old, in order to support the central government’s free school lunch program. The free school lunch program aims to support elementary school students eight years and up. The day care center will not receive its 60 percent of utility expenses funding, including air conditioning and heating, and its snack expense budget for each baby will be reduced from 10,900 won to 900 won.
“I know that it’s a very poor decision,” an official of the Gangbuk office told the JoongAng Ilbo. “But we had no other options but cutting it because we have to provide money for the newly implemented welfare policies including the free school lunch program that is provided by the central government and politicians. [Korea Times]
You can read more at the link, but if South Koreans want increased government programs they have three choices: increase taxes, cut spending elsewhere, or go into massive debt. It appears for now South Korea is deciding to cut spending elsewhere where in the US we just decided to go into massive debt.
3:04 am on December 6th, 2011 1
In the US the “Free Lunch” programs tend to be subsidized toward the low income families. Not quite sure of what I think of your lean on this, really. This implementation is across the board. That means the rich kids of Gangnam get free food that isn’t required just the same as the poorer sampling of citizens. Now the poor side of the house will feel more pain through the reduction of child care, where the the two income families really will feel the pain. The Gangnam leisure class seem to be the only ones to gain here, on two counts. Their kids get free meals, and the cost of child care they don’t need goes up. Everyone knew this would happen, particularly the former Seoul Mayor. Learn as you lose in the game of life Korea.
4:04 am on December 6th, 2011 2
Funny thing is that as of next year, the government is promising free and or heavily subsidized childcare for all.