In this blog post, we’ll examine the relationship between technology and society, and specifically look at why technological determinism prevails. Humans are often referred to as social animals. At the same time, it’s hard to imagine human life without technology. As such, technology and society are central to human life. Since technology and society are so closely intertwined...
This blog post examines whether a situation where imports exceed exports necessarily signifies an economic crisis. It calmly outlines the correct criteria for judging a nation’s economic health by analyzing the relationship between the trade balance, current account balance, and GDP. Is a trade deficit always bad? In January 2023, South Korea recorded a $12.7 billion trade deficit...
This blog post examines, from an economic perspective, why government intervention is necessary and how far it should be allowed when prices of daily necessities become unstable, using the example of the mask rationing system. The Mask Quota System and Mask Prices It’s not just fleetingly popular items like Pokémon bread that can become hard to find; even essential daily necessities...
This blog post calmly examines how probability, risk, human psychology, and cognitive biases cloud rational judgment during investment and decision-making moments. It explains the process by which uncertainty distorts judgment through concrete examples. Principles of Investment and Finance When I mention I majored in economics, many people ask which stocks seem likely to rise. Indeed...
This blog post examines why real estate, particularly apartments, serves as a key indicator in the South Korean economy. It calmly explores how trends in housing prices, subscription applications, and new home sales signal developments for households, businesses, and the government. Understanding real estate is key to seeing the South Korean economy Unless you’re a Hollywood...
This blog post calmly examines why apartments in South Korea are treated like financial products beyond mere living spaces, and the structure created by loans, policies, and psychology. How on earth can you afford to buy an apartment? An apartment is the most expensive asset an average person can purchase. Moreover, since housing prices aren’t included in the consumer price index, no...
In this blog post, we will calmly examine the difference between poverty and inequality, measurement indicators, and international comparisons to determine whether inequality in Korean society is indeed severe. How severe is inequality in Korea? We previously explained that efficiency and equity are important. Efficiency refers to increasing GDP, but how can we judge equity? What does it...
This blog post calmly examines why the jeonse deposit, though appearing like a stable asset, actually contains credit risk similar to stock investments, through its contract structure and institutional limitations. Why is jeonse as risky as stock investing? While investment principles and approaches vary slightly from person to person, most people essentially seek two things: higher...
This blog post examines how monetary rewards distort or enhance human motivation and organizational performance, using case studies to explore the question: Are incentives a drug that boosts performance, or a poison that ruins organizations? Are incentives a drug or a poison? Two friends decide to diet to lose weight. After much deliberation, they make a bet: whoever loses more weight wins...
This blog post calmly examines the structure of inflation and the resulting burdens on daily life within the flow of the economy, exploring why lunch costs and living expenses inevitably keep rising even as salaries stagnate. Why do lunch prices keep going up? While salaries remain stagnant, product prices show no sign of falling and keep climbing. Not just lunch prices, but bus fares...