Economist Wu Xiaoqiu put forward a thought-provoking point in a speech: stop simply relying on stimulating domestic demand, because ordinary people's pockets are empty, the money in their pockets is cleaner than their faces, and they cannot afford to spend at all.
His viewpoint pointed out sharply that the fundamental reason for the weak domestic demand in China lies in the lack of income and limited consumption capacity of the common people. So, when the people have no money in their pockets, how to stimulate domestic demand and stimulate consumption?
In order to support Wu Xiaoqiu's view, we might as well take a look at the real living conditions of the people. For example, in Dali, many sanitation workers do not receive wages for most of the year, and their livelihoods are difficult to secure.
Although some teachers work hard, but the monthly salary is only 3000-4000 yuan, the salary is meager and difficult to maintain, some entrepreneurs who invest in homestays, want to rely on tourism to make money, how do you know that the industry is seriously involuted, the off-season can not be profitable at all, less than a year on the loss, the future is bleak.
In the job market, many college students are gray after graduation, and they can't find a job for more than a year after graduation. In the company, middle-aged employees in their 40s are also unable to escape the doom of layoffs, and jobs are hard to find, which is a great blow to them who have support for the elderly.
These cases reflect the lack of income and the forced livelihood of ordinary people. Even if you want to start your own business, you still face the dilemma of low investment, weak support, and low returns.
Even if you squeeze into the "zero threshold" self-leading industry, there are very few people who can rely on their own income for a long time to survive, and most people are struggling to survive.
Of course, there are still some wealthy classes in society, but they account for a small proportion of the entire population of society, and they cannot drive the economy at all. At the same time, the gap between the rich and the poor in our country is widening, with the rich getting richer and the poor getting more and more difficult. The disposable income of urban and rural residents in China is relatively low, and the overall consumption power is weak.
In order to stimulate domestic demand, many policies and measures have been formulated and introduced in various places. However, as the people's pockets become less and less, and the desire to consume falls to the freezing point, the effect of these policies is very limited.
So, how to make the people's pockets bulge and have money to spend?Wu Xiaoqiu believes that the focus should be on increasing the income of the common people. In other words, by raising the income level of the people and improving their living conditions, we can increase our consumption capacity and release the potential of domestic demand.
For example, raising the minimum wage standard, ensuring that grassroots employees have a certain income, increasing support for small and medium-sized enterprises and self-employed people, increasing employment opportunities, improving the social security system, ensuring the basic needs of the people such as education, medical care, and pension, reducing living pressure, cleaning up all kinds of unreasonable and arbitrary fees, and reducing the burden on the people.
These measures can increase the proportion of disposable income of the people, so that they can invest more income in consumption, thereby driving a larger growth in domestic demand.
Of course, in addition to increasing income, it is also important to narrow the income distribution gap. If the gap between rich and poor is too large, even if the country's GDP grows rapidly, its effect in promoting consumption is limited.
Among them, the most critical issue is education. Through educational equity, different social strata can have the opportunity and possibility to receive high-quality education and work in the system, which can effectively narrow the gap between the rich and the poor. This is a move that is both fair and efficient.
In general, it is difficult to change the current situation of weak domestic demand in China by relying solely on stimulus policies, and it is necessary to fundamentally solve the problems of people's income and life. When the people's money bags are bulging, they will naturally increase consumption, release the huge potential of domestic demand, and promote steady economic growth.