In modern society, the difficulties of the real economy are a serious problem. The real economy refers to the material industry economy, which refers to the operation of the real industry, including manufacturing, agriculture, service industry, etc. However, with the development of the times and the transformation of the economy, the real economy is facing various difficulties. So, what is causing the real economy's difficulties?
First of all, technological progress has brought about an increase in productivity. With the development of science and technology, automated and intelligent production equipment and robots have gradually replaced human resources, making the real economy face the problem of overcapacity. Workers were forced to lose their jobs because they couldn't compete with the efficiency and speed of robots. This has led to a large number of people losing their jobs, businesses struggling, and the real economy taking a serious hit.
Secondly, the market is highly competitive. With the deepening of globalization and the opening of the market, domestic enterprises are facing competition from all over the world. Foreign brands enter the market and offer cheaper, higher-quality products, making it difficult for domestic companies to occupy an advantageous position in the market. The fierceness of this market competition is a heavy blow to enterprises, especially those that lack technological innovation and brand advantages, and it is difficult to survive in the market.
In addition, the financial environment has had a significant impact on the real economy. Over the past few decades, the financial industry has developed rapidly, with financial institutions and financial products emerging one after another. However, the boom in the financial industry has also brought about *** Some financial institutions and investors have over-pursued profits and neglected the development of the real economy. They prefer to invest their money in high-risk, high-reward financial products rather than the actual industries that support the real economy. This has led to the problem of difficult and expensive financing for the real economy, making it difficult for many enterprises to obtain the required financial support.
Finally, policy and institutional constraints are also one of the reasons for the difficulties of the real economy. Some local regulations and policies are not supportive of the development of the real economy. For example, cumbersome approval procedures, high tax burdens, and lack of systems to protect property rights have brought great trouble to the real economy. It is difficult for enterprises to obtain the best support and convenience, which further hinders the development of the real economy.
The difficulties of the real economy are a complex and serious problem, but we can alleviate them by taking some measures. First of all, the formulation of relevant regulations and policies should be strengthened to provide a better environment and support for the real economy. Second, enterprises need to strengthen innovation, improve competitiveness, and make themselves a place in the market. Third, increase support and investment in technological innovation to improve the core competitiveness of the industry. Finally, financial institutions should also change their thinking, actively support the development of the real economy, and provide more financial support for enterprises.