Why there is No Austerity in People’s Korea .

Some people say that People’s Korea is no different to the capitalist countries and has austerity . Recently the Supreme People’s Assembly (the highest law-making body in the DPRK ) the 12th session of its 14th term . At the meeting held at the Mansudae Assembly Hall in the centre of Pyongyang Deputy Ri Myong Guk, minister of Finance of the DPRK gave a report . In the report he stated that budgetary revenue in the DPRK over the past year had increased by 4.3 per cent and that spending by the state had increased by 3.2 per cent . Two things of importance to note there ,firstly spending in the DPRK is being increased and not cut ,secondly , the DPRK is NOT spending more that ‘earns ‘ ,it is actually operating with a small budgetary surplus ! It is planned to increase spending by another 3.2 per cent during the coming year ,37 per cent of the state budget will be spent on health ,education and sports . The DPRK is not cutting public expenditure unless the capitalist countries which have continuous cutbacks and austerity for years and years.

Unlike the capitalist countries the DPRK funds its public spending through the profits of state owned industries .The DPRK government does not borrow money from banks nor does it print money to create revenue .The free-market , 100 per cent USA has a staggering national debt of $36 trillion equivalent to $107,000 per US citizen . The US pays $1 trillion in payments on the national debt . So much for the “land of the free “.

Back in 2007-2008 banks in countries like the UK and US collapsed and had to be bailed out by the government or more accurately the taxpayer. In People’s Korea no bank has ever collapsed or needed by bailed out , this is because People’s Korea has a socialist planned economy and a Juche-based self-reliant independent national economy . None of its banks are owned by foreign banks and the DPRK is not a member of the IMF, World Bank , WTO or WEF so they control and plan its economy in its own interests .

It is another miracle of Juche that People’s Korea can increase public spending but at the same time not borrow or print money . There is no austerity or empty shops in People’s Korea .