In the US, federal spending fell by 12% in June, reducing its fiscal deficit by 49%, while South Korea's government spending rose 1.1% in the second quarter, making the gap in the widening deficit clear.
The Bank of Korea announced on the 26th that government consumption rose 1.1% in the second quarter, led by social security in-kind benefits.
When the US federal government's fiscal deficit reaches $89 billion by June, it is clear that the fiscal recovery will be reduced by 49% compared to the same period of the previous year due to a decrease in government spending and an increase in imports.
The U.S. Treasury Department said on Wednesday that federal spending fell 12% to $550 billion in June, "reflecting a decline in spending on epidemic programs, including the Small Business Administration Treasury and Labor Department."
Korea's exports fell sharply in the second quarter, with a 3.1% decline in the second quarter, led by chemicals and primary metals, and imports down 0.8%. I'm not saying it, but I think there is a way to keep the labor market strong and keep prices down."
The U.S. economy was negative for the second quarter in a row with a negative forecast for the second quarter, with a gross domestic product (GDP) of -1.6% QoQ in the first quarter.
“There is a chance that job creation will be somewhat slow,” Allen said.
Korea maintained its growth rate thanks to government spending and stimulation of private consumption as its fiscal deficit grew, and trade deficit overlapped with declining exports.
The Wall Street Journal reported on the 26th that Secretary Allen's consecutive trip to South Korea and other countries was an article from Seoul, saying, "U.S. officials are still struggling to contain the highest inflation the United States has seen in decades." The poor (national) economy could fall into a swamp,” he said in a statement on a strategy to pass on US inflation to South Korea and others.
The WSJ went on to say about the tour: “During an 11-day sweep of Asia this month, Treasury Secretary Janet L. Yellen and colleagues from wealthy countries in Europe and elsewhere discuss how to mitigate the economic shockwaves hitting low- and middle-class countries. I made it clear that I was starting to think about it.”
Minister Allen and Deputy Prime Minister Choo Kyung-ho reached an agreement in Seoul on the 19th to “participate in the price ceiling system for Russian crude oil”.
In the US, the government and the media are fighting fiercely over the choice of the 0.75% and 1.0% rate hikes ahead of the Fed's further rate hike on the 26th.
The Bank of Japan announced on the 26th that the corporate service price index for June was 106.9, up 2.0% from the same period of the previous year and the 16th consecutive month of increase. The increase in the price index in Japan was the highest in two years and four months since February 2020 (2.1%) against the background of rising transportation and labor costs.
In particular, the corporate service price index recorded the highest growth rate since 1986, with an increase of 84.9% for 'international air freight' and 66.5% for 'sea freight'. Accommodation services rose 19.8% as the coronavirus-restricted economy resumed, and 'shipping and postal services' increased 5.3% against the background of rising fuel prices and demand for transportation, in the growth of transportation and advertising services traded between companies.
The Yoon Seok-yeol government is mimicking Reaganomics by implementing a corporate tax cut policy to stimulate supply.
The Yoon system is reenacting the political propaganda tool by following the failure of calculating the ‘appropriate line for tax cuts’ in the policy of ‘expand corporate investment through tax cuts’ in the Rapper curve of Reaganomics.