This paper discusses the current Korean government’s “income-led growthmodel” from the perspectives of the Principles of Economics. It argues that boththe characteristics and severe limitation of the income-led growth model can bestbe explained by the Keynesian IS-LM model. The IS-LM model is an aggregatedemand model which ignores the aggregate supply side. Hence, the income-ledgrowth model does not take into account of adverse aggregate supply effects ofthe abrupt increase of the minimum wage. Since the IS-LM model is ashort-run model it can not properly address economic growth. The so-called“income-led growth (model)” is a misnomer. The misleading and awkwardterminology should be discarded. The wide-used terminology “inclusive growth”will suffice. The minimum wage increase should be moderated.