Brought to Bay

Gov't Ought to Ease Plight of Working Poor

Soaring oil prices and widespread epidemic fears are threatening the livelihoods of low-income workers, but the government just keeps looking on.

Take the skyrocketing price of diesel, which has recently exceeded that of gasoline here in part because of a shortsighted tax policy. Of course the gas oil price hikes are due mainly to the jump in international prices reflecting the surge in global demand. Still, the price reversal with gasoline at the domestic market was attributed to Seoul's sharp raising of the tax on diesel to narrow the price gap last year.

Now, numerous urban peddlers as well as small-scale farmers and fishermen whose main means of making a living are small vehicles using diesel are finding the harder they work, the bigger the losses because of the prohibitive fuel prices.

But government officials are still ruling out the possibility for oil tax cuts, saying it would rekindle consumption in this era of high energy prices. They may be right if the tax breaks are directed at middle-class motorists who use their vehicles for commuting or leisure activities. But the beneficiaries of diesel tax reduction are lower-income workers who would not use more energy than they need however low the tax rates are. A teamsters' union has decided to go on a national strike unless the government comes up with relief measures by June 10. Most people no longer regard it as a usual union threat, but a desperate distress signal.

The government should move quickly to help ease their burdens through either cutting taxes or giving refunds.

Also, more than 3,600 small restaurants closed their doors this year in Seoul alone, hit by largely groundless rumors about mad cow disease, avian influenza and rocketing material prices, including flour. No fewer than 319,000 jobs have been lost in catering, wholesale and lodging businesses over the past 15 months, in what many self-employed say is the ``worst business slump'' since the Asia-wide financial crisis of a decade ago.

Fluctuations of international material prices are beyond the reach of officials, but unfounded health panic surrounding beef and poultry could and should have been reduced to a minimum had Seoul handled it more skillfully and preemptively.

There was only one reason people elected Lee as President, despite his dubious moral credentials ― make our everyday lives better. It's too early to tell, but Lee's pledge to rectify income polarization seems to have gone the other way round: The number of households in debt has sharply increased, as their spending far exceeds income, while the amount of credit card use abroad as well as cash reserves at 10 largest conglomerates have hit all-time records.

Lee may fall into a lame duck status far earlier than expected if he fails to meet the popular expectations for improved living standards sooner than later. The people's disappointment and despair about their lives going from bad to worse could cause social unrest incomparable to that from mad cow fears.

Conglomerates may invest less without tax cuts and other incentives. For many working poor, however, their survival itself is in jeopardy without prompt support.