Capitalist private ownership has rapidly led to the concentration of wealth in the hands of a few, resulting in the lack of spending power of the common people, the inability to sell the products of enterprises, and the problem of overcapacity.
In 2001, he joined the world's leading organization and sold his products to Europe and the United States, which solved the overcapacity, and the strong demand in Europe and the United States drove China's industry to expand its scale and expand its production capacity. However, in 2008, the financial crisis broke out in the United States, and the American and European economies were hit hard, foreign trade and exports were hit hard, the problem of overcapacity broke out, and a large number of workers lost their jobs.
In order to solve the problem of overcapacity, with 4 trillion investment as a symbol, start infrastructure and real estate, infrastructure and construction of real estate, can drive the development of steel, cement, chemical, electrical appliances, home appliances, hardware and other industries.
Most people don't have money, how to buy a house, so they come out with a policy, 30% down payment, 20% down payment loan to buy a house. Dramatically reduces the amount of money needed to buy a home for the first time. What if people don't want to buy a house, they will concentrate schools and hospitals in the city, so that you have to buy.
The huge demand for buying a house, by greatly reducing the funds for the first time to buy a house, through hard measures, through the way of 30 years of debt stimulated, resulting in demand greater than supply, so housing prices continue to **, at the same time Wenzhou and other capitalists smelled business opportunities, hoarding and speculation, housing demand and investment demand together, so that housing prices rise step by step, buying a house can make money, has become a consensus.
The rise in housing prices has led to the rise in land prices, and the rise in land prices has pushed prices higher, and the money-making effect brought by the sharp rise in housing prices has absorbed huge amounts of funds from banks, insurance, trusts, and the real economy into real estate, resulting in skyrocketing housing prices, so people can no longer pay the down payment and do not want to buy a house.
China's housing prices are to solve the fundamental contradiction of capitalism, the crisis of overcapacity, with a huge amount of debt, not that the people really have money to buy a house, the gap between the rich and the poor is large, the people have no money, plus the high mortgage and interest have to be repaid every month, the consumption power has been greatly weakened.
As a result, the company's products and services cannot be sold, the problem of overcapacity re-erupts, the survival of enterprises is difficult, many enterprises go bankrupt, many people lose their jobs or their incomes decline, and they cannot afford to repay their mortgages, so they can only choose to cut off the supply or sell the house at a significant price.
Housing prices, the owner cut off the supply, the house can not be sold, so a huge amount of real estate-based assets, including **, bonds, wealth management products, accounts have shrunk significantly. Unemployment, declining incomes, and large shrinkage of assets have further reduced social consumption capacity, so the CPI index has been falling, and overcapacity will not stop, but a continuous cycle of aggravation.
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