South Korea's program of higher wages and taxes – so far, it's not working
Why would anyone expect higher taxes to increase growth?<p>&gt; <i>Under President Moon Jae-in, South Korea has raised taxes and the minimum wage in the name of economic growth. So far, it hasn’t worked out as planned.</i><p>That&#x27;s not how that works at all. Whoever made this &quot;plan&quot; apparently skipped Macroeconomics 101.<p>&gt; <i>Growth has slowed, unemployment has risen and small-business owners like Moon Seung are complaining.</i><p>Any Economics undergrad would tell you that&#x27;s exactly the expected outcome.<p>Raising taxes hurts growth and increases unemployment because you are reducing the profitability of all businesses.<p>Raising minimum wage increases unemployment because you are raising the cost of labor.<p>And small businesses often pay the highest price for these policies.