Following on the theme of economic systems and North Korea, below is a documentary from the BBC Panorama programme. John Sweeney goes undercover in North Korea and finds out what life is really like. The documentary shows: State ownership, State control, price controls and extreme government failure in poor quality goods and services, massive shortages, and crippling unemployment. He does venture over the border to South Korea where the experience is in stark contrast. Good video to finish off the market systems topic.
From the WSJ News Graphics. There has been a big increase in borrowing by old Koreans to open fried chicken restaurants.
The Korean government is trying to slow the growth of chicken restaurants—which tripled to 36,000 over the past 10 years—amid concern about the rising household debt burden, which is seen as a drag on economic growth. While it is unlikely a burst fried chicken bubble alone would take down Korea’s financial system, a sharp rise in defaults would damp consumer spending and make banks reluctant to lend. Gross domestic product grew just 2% last year, its slowest rate since the 2009 financial crisis, partly as a result of poor domestic demand on top of weaker demand for Korean exports. WSJ 14th September.