Wage increases must push prices up

Mondo Finance Updated on 2024-01-29

The current state of China's economy is very worrying. Salary cuts and layoffs are being considered everywhere. Banks have entered a situation of asking others for loans. A large amount of capital is reluctant to take risks and begins to lie flat or emigrate. **Also difficult to push**. The entire surrounding population is in a state of caution and anxiety. This situation cannot last long. China must consider how to activate the liquidity of capital and avoid the tragedy of falling into a liquidity trap.

The specific measures are as follows:

1. Increase investment in scientific and technological research and development. China must print money to support investment in scientific and technological research and development, and strive to achieve independence and controllability in the high-tech industrial chain. Establish an independent IT ecosystem. It can cultivate and absorb a large number of high-tech talents for employment. This is also the foundation of the country.

2. Encourage the appropriate price increase of agricultural products and promote the price increase of other commodities. Improve the gross profit margin of the enterprise and enhance the level of profitability.

3. Encourage profitable enterprises to raise salaries for employees. Through the policy of wage increase and tax reduction, the spending power of ordinary workers will be improved.

4. Provide basic living expenses to low-income families. Improve the sense of security and spending power of low-income people.

5. Activate ** when necessary, China needs to activate ** at the appropriate time, so that investors can gain confidence.

At present, the marginal utility of activating the economy through infrastructure is getting weaker and weaker. The country's capital construction is basically in place. Engaging in a large number of redundant construction or face-saving projects will cause a waste of resources. The way to stimulate the economy with the greatest marginal utility is to activate the national consumption capacity.

China can encourage its citizens to develop towards the ocean by promoting the ocean economy. Improve high-tech agricultural cultivation technology and improve the supply capacity of agricultural products. Promote the tourism economy and entertainment economy, and activate the consumption of the wealthy.

In short, wage increases must be encouraged to push prices**. Activate capital investment. Don't take the old road of cutting down on food and clothing, cutting salaries and laying off workers. It is necessary to learn from Xi United States and promote economic development by covering a big bubble with a small bubble. Instead of popping bubbles. As long as China can maintain its leading position in science and technology, leading militarily, and its economy will be vigorous. It doesn't matter how much money you print.

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