UYal's blog

(alt: “Liquidity Is Not the Enemy – It’s About Where It Flows”)

🔹 1. Introduction – A Curve That Raised Bigger Questions

In my previous posts on the Lorenz Curve and the Wealth Gini Coefficient,
I explored how inequality compounds over time.
But that led to a bigger insight:

👉 It’s not just about how much liquidity is injected into the economy — but where it flows.

Liquidity itself isn’t the problem.
The real issue is whether there’s a designed path for it to follow.

(For this discussion, I set aside small-government, laissez-faire arguments.)

When wealth inequality rises, it doesn’t just mean people got richer.
It means wealth is accumulating somewhere — likely due to concentrated liquidity flows.

And when we compare South Korea’s past and present administrations,
we see a sharp difference in how they directed that liquidity.

---

🔹 2. Comparing Economic Approaches – Moon vs. Lee

Here’s a comparative look at the two administrations:

Category	Moon Jae-in Administration (2017–2022)	Lee Jae-myung Administration (2024– )
Liquidity Strategy	Pandemic response, sustained low interest rates, fiscal expansion	Interest rate reductions, liquidity targeting everyday life
Where Liquidity Went	Mostly flowed into real estate	Policy efforts to direct it toward financial markets (e.g., stocks)
Housing Policy	Tight regulation on multiple home ownership, higher property taxes, stricter mortgage rules	Focus on primary residence; continued regulation but more flexible sales policies
Asset Market Strategy	Lacked a clear direction beyond real estate restrictions	Aimed to reform the stock market, boost listings, reform short-selling mechanisms
Public Perception	Indirect effects (stimulus checks, rent reform laws)	Direct price-control actions (e.g., grocery prices), support for low-income groups
Inequality Approach	Focused on redistribution via real estate restrictions	Focused on reshaping asset flow structurally
Resulting Outcome	Liquidity existed but lacked clear direction → fueled real estate bubble	Liquidity with an intended direction → experimental shift in economic structure

Moon Jae-in served as the President of South Korea from 2017 to 2022.
Lee Jae-myung, the current President (since 2024), is pursuing active reforms including updates to commercial law and stock market regulations.

---

🔹 3. Liquidity Is Not the Villain. Direction Is Everything.

Liquidity is essential during crises.
But no matter how much regulation you impose,
if you don’t create a path for that money to move through,
it will inevitably flood back into familiar markets — like real estate.

If Moon’s government tried to shut off the water,
Lee’s administration is turning it on — but guiding its direction.

---

🔹 4. It Feels Like the Puzzle Is Coming Together

I admit: I’m the type who’s afraid of sudden change.
But this time, it feels like pieces are aligning —
from financial market reforms to real estate adjustments to cost-of-living policies.

Whether it will work, I don’t know.
But at least now, there seems to be intentionality behind liquidity design —
and that, in itself, is a meaningful shift.

Sometimes I think:
We only see the outcomes.
But designing systems like this — and making them work together —
is truly an underrated feat.

---

🔗 Related Reads:

• 🔗 《How Inequality Compounds Over Time – The Exponential Curve of the Lorenz Curve》
• 🔗 《Beyond the Gini Coefficient – What Wealth Gini Tells Us About Collapse》

Enjoyed the post?
☕ Support me here → Buy Me a Coffee