Zhang Weiying, a professor of economics at Peking University, not only often advocates a market economy, but also vigorously advocates the privatization of state-owned assets.
At a 50-person economic forum in 2019, Professor Zhang Weiying said that where the state-owned sector exits faster, the better the economic growth, and where the higher the entry of the private sector and foreign capital, the better the economic growth.
Does Professor Zhang Weiying think that the private hospital is too cheap, or does he think that the house of a private real estate company is too cheap?
What will be the consequences of allowing private capital and foreign capital to enter state-owned sectors and state-owned assets such as energy, transportation, education, medical care, and urban construction?
In the nineties of the last century, Yeltsin sold a large amount of state-owned assets to private companies at a low price and turned a large number of state-owned sectors into a private sector.
As a result, Russia's domestic prices are soaring, currency depreciation, inflation, and goods have risen by more than 100 times in just a few years, and the money in the hands of the people has become waste paper almost overnight, and a large number of Russian state-owned assets have been embezzled by foreign capital, and Russia's GDP has continued to decline for 10 years.
This is what Professor Zhang Weiying advocated that state-owned assets hinder economic development, and what really hinders economic development is not state-owned assets, but the loss of state-owned assets.
Professor Zhang Weiying also said that where the proportion of foreign-funded enterprises is high, the higher the R&D density.
Foreign-funded enterprises do bring a certain amount of innovation, but if state-owned enterprises want to innovate in the market, then who will ensure the stability of the market? Who will build bridges and roads? Who will stabilize the drug **?
Not only that, Professor Zhang Weiying also said that in places with high capitalization, there are fewer cases per 10,000 people, and in places with high public expenditure, there are more cases per 10,000 people.
From the end of the 19th century to the end of the thirties of the 20th century, the United States not only increased public spending significantly, but also successfully emerged from the Great Depression of the thirties of the last century under the leadership of Roosevelt's economy, becoming one of the countries with the fastest economic development at that time.
According to Professor Zhang Weiying's theory, the period when the United States built infrastructure and invested heavily in public spending should be one of the most corrupt periods in the United States.
Corruption should not deny the legitimacy of public spending on bridges, roads, hospitals, etc.
Moreover, Professor Zhang Weiying has over-touted the market economy and privatization, and in some places it is not possible to privatize all of them, although state-owned enterprises will have some corruption problems.
But privatization is not just about corruption, and some can have catastrophic consequences.
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