Coronavirus

Bravo Italy For World’s Strictest Vaccine Mandate - But Where’s Mario?

Italy's new "Super Green Pass" is great, but where's "Super Mario"? Such a sweeping measure, which requires workers to show proof of vaccination or a negative COVID test, risks encroaching on the fundamental right to work. It's necessary right now, but also needs Prime Minister Mario Draghi to explain why.

Bravo Italy For World’s Strictest Vaccine Mandate - But Where’s Mario?

Dove sei, Mario Drahi?

Massimo Giannini*

-OpEd-

ROME — There is not a single good reason to criticize Italy's new "Super Green Pass", the new decree announced on Thursday that will mandate more than 20 million of the country's workers to prove they've tested negative to COVID-19 or that they've been vaccinated to work, beginning Oct 15.

It is the right thing to do in a country locked in a decisive, long and painful fight against the pandemic. Some 10 million Italians still haven't been immunized and the pace of the vaccine rollout has declined significantly in September, with the number of shots administered daily dropping from 142,000 to about 70,000.

We have written it many times and repeat it now: Against the backdrop of possible new restrictions in the winter, the mandatory "green pass" is no "health dictatorship," but a way to keep the economy open and strike a fair balance between the freedom of a few and everyone's right to health. Extending it to employees and self-employed people is not discrimination. It is protection and prevention.

There are times in the life of a nation when taking the ultimate responsibility is called for.

But precisely because of the significance of this measure, Prime Minister Mario Draghi's silence on it was striking. He should have personally explained this decree to Italians. Instead, the news was announced by government cabinet ministers in a press conference. Draghi's absence was likely a way to underline that all the four political parties underpinning his government, including Matteo Salvini's far-right Lega Party, agreed on the measure.

But surely this is not enough. There are times in the life of a nation when taking the ultimate responsibility is called for, and this is one of those. We stand again at a crucial stage of Italy's fight against the virus, and the "Super Green Pass" calls into question our most precious asset beyond life: work, with its rights and duties. With an entire community of skeptics needing to be convinced and engaged, a prime minister worthy of that title must put not only his signature on it — but also his face.

*Giannini is La Stampa's editor-in-chief

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Society

Debt Trap: Why South Korean Economics Explains Squid Game

Crunching the numbers of South Korea's personal and household debt offers a glimpse into what drives the win-or-die plot of the Netflix hit produced in the Asian country.

In the Netflix series, losers of the game face death

Yip Wing Sum

-Analysis-

SEOUL — The South Korean series Squid Game has become the most viewed series on Netflix, watched by over 111 million viewers and counting. It has also generated a wave of debate online and off about its provocative message about contemporary life.

The plot follows the story of a desperate man in debt, who receives a mysterious invitation to play a game in which the contestants gamble their lives on six childhood games, with the winner awarded a prize of 45.6 billion won ($38 million)... while the losers face death.


It's a plot that many have noted is not quite as surreal as it sounds, a reflection of the reality of Korean society today mired in personal debt.

Seoul housing prices top London and New York

In the polished streets of downtown Seoul, one sees endless cards and coupons advertising loans scattered on the ground. Since the outbreak of the pandemic, as the demand for loans in South Korea has exploded, lax lending policies have led to a rapid increase in personal debt.

According to the South Korean Central Bank's "Monetary Credit Policy Report," household debt reached 105% of GDP in the first quarter of this year, equivalent to approximately $1.5 trillion at the end of March, with a major share tied up in home mortgages.

Average home loans are equivalent to 270% of annual income.

One reason behind the debts is the soaring housing prices. In Seoul, home to nearly half of the country's population, housing prices are now among the highest in the world. The price to income ratio (PIR), which weighs the average price of a home to the average annual household income, is 12.04 in Seoul, compared to 8.4 in San Francisco, 8.2 in London and 5.4 in New York.

According to the Korea Real Estate Commission, 42.1% of all home purchases in January 2021 were by young Koreans in their 20s and 30s. For those in their 30s, the average amount borrowed is equivalent to 270% of their annual income.

Playing the stock market

At the same time, the South Korean stock market is booming. The increased demand to buy stocks has led to an increase in other loans such as credit. The ratio for Korean shareholders conducting credit financing, i.e. borrowing from securities companies to secure stock holdings, had reached 21.4 trillion won ($17.7 billion), further increasing the indebtedness of households.

A 30-year-old Seoul office worker who bought stocks through various forms of borrowing was interviewed by Reuters this year, and said he was "very foolish not to take advantage of the rebound."

In addition to his 100 million won ($84,000) overdraft account, he also took out a 100 million won loan against his house in Seoul, and a 50 million won stock pledge. All of these demands on the stock market have further exacerbated the problem of household debt.

42.1% of all home purchases in January 2021 were by young Koreans in their 20s and 30s

Simon Shin/SOPA Images/ZUMA

Game of survival

In response to the accumulating financial risks, the Bank of Korea has restricted the release of loans and has announced its first interest rate hike in three years at the end of August.

But experts believe that even if banks cut loans or raise interest rates, those who need money will look for other ways to borrow, often turning to more costly institutions and mechanisms.

This all risks leading to what one can call a "debt trap," one loan piling on top of another. That brings us back to the plot of Squid Game, "Either you live or I do." South Korean society has turned into a game of survival.

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