[Opinion] One Vote Reduces Opportunity Cost

In the basic concept of economy there is a word `opportunity cost`.

Opportunity cost means that if someone does some activity, he should give up the other activity, and the value of other activity is the opportunity cost.

For example, opportunity cost of university student includes other economic acts, which he should give up as he is studying in university.

Suppose that he earned big money opening Venture Company without going to the school.

Then, the opportunity cost for being in the university is quite big as he sits in the classroom giving up the income, which he can earn through venture.

As other example, in case player Park Chan-ho, who is playing in American pro baseball, goes to the army, his opportunity cost for being in army would be more than 13 million dollars per annum.

Therefore, many star player and entertainers do not want to go to army, if possible.

Like wise, we usually think the cost which is entailed while doing an economic activity, however, if we perceive such opportunity cost and utilize well, we would do excellent economic behavior.

Returning to the subject, there must be no country like our country which has big opportunity cost among industrialized countries in the world?

Let us see the expenditure that is spent on education.

As public education is not doing well, private education is booming even before entering Kindergarten.

Parents spend quite big amount of money on English, art and athletics education from young age, saying that they are providing the best education, not considering the family`s income.

Without counting Chonji, expenditure for private education surpasses family income sometimes.

If it is a rich household, children receives too expensive extra curriculum for which the amount can`t be imagined, and if it is not, mother arranges fee for extra curriculum even working as house wife.

Visible expenditure for private education is like aforesaid and if the one is third grade student in high school, invisible expenditure that is called `third grade disease`, is also huge.

For example, what is the expenditure for shifting house in an academic area?

In case of Daechi-dong in Seoul, where around 150 famous private institutes are located, sale price of 32 Pyeong apartments is 550 million won and the lease of a house on deposit basis is around 300 million won.

Such opportunity cost is quite big.

If they possess 500 million won worth apartment, it means they give up deposit interest that would be least 2 million won; therefore, it should be included in opportunity cost for entering the university.

If opportunity cost of the individual is like this, then considering the whole society it would be much bigger.

It is not only the field of education.

Although it is said that it improved a lot, but what about the expenditure for getting each certificate for the sake of opening one company, and what about the black money which is provided to politicians and high ranking officials for the sake of getting advantage?

In addition, what about the bribe which pleasure resorts give to fire stations, police stations, and district office…

Then, the owner of shop reports the income less or evades taxes in order to get back the exact expenditure

Such things do not happen only in one particular place.

There are many cases individual to individual.

If we mention, there would be endless compromises, therefore our social opportunity cost is huge.

The nation like our country which doesn`t have united religion or centrifugal point should promote social development by people only, therefore, the speed of reformation and change is slow and expenditure is high.

In order for society, which has big opportunity cost in society as well as individual, to develop, all of us should be reborn.

When I do some behavior –whether it is political or economical- we should think how my behavior affects other people or society to pay opportunity cost.

Now elections will start continuously.

We should choose the one who can work for people and show the vision, not using one vote following regionalism, saying that “ are we different? ” Or emotional popularity.

Otherwise, we will end up spending big opportunity cost for years.

Yun Yong-Man (Prof. Incheon Univ, Economics)