In the past, the land rent economy was an important pillar of China's economy, bringing wealth to many people and helping to solve the problem of urbanization in China's industrialization process.
However, at this time and at that time, the wheels of the economy continued to move forward, and the era of the land rent economy was gone.
Looking back to the fifteen to twenty years before 2022, the land rent economy is prevalent in our country, many people have taken advantage of the situation, and local governments have also formulated policies around this, and the administrative system is closely linked to it, and the financial, financial and other departments have all served the land rent economy. However, time flies, and now the local finances are in deep trouble, which is precisely the legacy of the land rent economy.
In the past, land finance made some places rely on land sales for a living, just like the descendants of landlords, and the loss of land will dry up the financial resources. For a long time, the entire administrative system has been closely linked to land rent and land development, and internal personnel are also Xi to this, and the difficulty of transformation can be imagined.
This is true of finance, and even more so of finance. Once upon a time, our financial system was centered on land rent, and it was difficult for manufacturing and small and medium-sized enterprises to obtain financing, while the financial system of the western industrial powers served the real economy.
If you look at the industrial powers of the West today, the financial system is based on the real economy. Looking at Hong Kong again, since 1983, when the era of land rent began, industry was almost completely wiped out.
The reason why this is the case is because the money from the sale of land is fast, and the tax mainly depends on the sale of land, and everything naturally revolves around the land. Educational resources and medical resources tend to serve the sale of houses. Driven by windfall profits, capital also flows to the industry.
In today's China, housing for living in, not for speculation has become a policy-oriented. However, the road to transformation is long, and vested interests will naturally resist. The transformation from a land rent economy to a digital economy requires a complete change in the thinking mode of the whole society.
In this process, people need to adapt to the new changes. However, the mood of the profiteers in the era of the rent economy will certainly be very violent.
Since the end of 2022, there have been many calls for the resumption of the rent economy. However, as we all know, housing prices have reached the extreme, and if they continue, the country will fall into a crisis and the survival of the people will be threatened.
That's why I always say that it is difficult to recur in 30 years.