Exploring the Fundamental Contradictions of China s Economy .

Mondo Finance Updated on 2024-02-01

In ancient and modern times, the imbalance between supply and demand in the market, and the overcapacity and inventory of products are all due to the lack of purchasing power in the market, and the reasons behind this are, because of the uneven distribution of wealth in economic development, resulting in the polarization of social wealth; There is inflation during the boom phase of the economic cycle, which causes the wealth of most people to shrink; The use of information technology and industrial robots has led to an increase in production efficiency and the elimination of a large number of jobs for ordinary people.

The economic problem, excluding inflation and deflation caused by the cyclical law, is ultimately a problem of growth and distribution. Because the periodic law itself is caused by the improper handling of these two problems, it is an artificially created problem, and it is not a fundamental problem, so I will not interpret it here. Among them, the growth is efficiency, and the distribution is fair. This is also a commonplace question, and it is also a question that all previous public leaders must know. It can be seen that this is a fundamental problem in the administrative governance of the country.

There has always been a standard answer to this question, that is, the economic development model of "efficiency first, taking into account fairness", and our country has always done this, but many people know it and don't know why. So let's first carry out the dialectic of opposition and unity on this issue, and see what the true face of it should be, so that we can find the root cause of the disease and prescribe the right medicine.

Giving priority to efficiency is the mode of operation of the capitalist free market, and taking into account fairness is the mode of operation of the socialist planned economy. Efficiency priority is to boost the enthusiasm of the market, is conducive to creating more social wealth, is the part of the bigger cake. Taking into account fairness is to balance the access of all participants, which is conducive to the stability of the whole society, and is the part of the distribution of the pie.

The philosophical structure of this problem is that taking into account fairness is dominated by the top down, and it is a heavenly means to make up for the deficiency while there is more than is lost, and what is paid attention to is the ideological care of treating the people and not suffering from inequality. Efficiency priority is the bottom-up market-led, it is a humane means that is insufficient and there is more than enough, and the emphasis is on full competition within the scope of the law.

Fairness and efficiency, these two constitute a logical closed loop, fairness without efficiency is false fairness, without people's enthusiasm, the society will not form the growth of wealth, for example, the big pot of rice to the end, all raised are lazy; Without fair efficiency, it will create greater injustice, what most people can't get, a small number of people can't hide, and in the end even the pot for eating will be broken. For example, every once in a while, there is an economic crisis in a capitalist country; For example, in past dynasties, every once in a while, there would be internal tears after polarization. This has been the case since ancient times.

For the closed loop of growth and distribution, the correct form should be that the market is responsible for the efficiency of growth, and the market is responsible for the fair distribution. The person responsible for market development can not participate in the administration, otherwise the people who create wealth will inevitably be unwilling to share their wealth, and will inevitably affect the established distribution policy. For the policy of reducing polarization, such as raising the tax bill of the rich, etc., it is bound to be passable, and often will increase the policy that is beneficial to their own operations, resulting in bias in the management of the capital market, such as the registration system, a large number of enterprises that do not have the listing qualification to enter the market, so that China's ** market is under pressure, and finally the financing and investment double loss, no one can get benefits.

And the ** who is responsible for fair distribution cannot participate in the efficiency growth of the market, otherwise the people who decide on the fair bill, and they themselves have a wealth creation machine, will subtly reduce the implementation of the fair bill, because they also want to keep more wealth. For example, a large number of state-owned enterprises constitute a huge amount of national capital, forming a hidden hegemony in the market, and they have unparalleled policy advantages and can easily crush private enterprises. Their executives have high salaries and a path to political advancement. Let's ask, how can such a model of integrating politics and business be willing to share the wealth earned with the people.

When we see this, we have already discovered the root of the problem, that is, the contradiction of the economic problem itself, which is the relationship between government and business. The integration of government and business has led to a confusion in the relationship between fairness and efficiency, resulting in the polarization of wealth and the imbalance between supply and demand in the market.

The integration of politics and business is a great harm to the country. "University" said that the house of ice cutting does not store cattle and sheep. That is to say, those who are in politics should not compete with the people for profit. Those who are in charge of the state must not take profit for profit, but must take benevolence and righteousness for profit. However, smart and diligent people have never understood this truth, and they always want to get more things, always want to diversify, always want to develop across borders, and always want to integrate politics and business, and finally cause their own and even the whole country's predicament.

Just imagine, in the end, people who have a lot of wealth, their increase in wealth is just a number. However, the operation of the industry they represent has harmed the entire business environment, really damaged the operation of the national economy, and ultimately harmed themselves, forming a vicious circle.

Lao Tzu once said, do nothing and do nothing. This is a basic truth, whether it is an individual or a country, only when we understand what we cannot do, can we do what we can do with confidence and boldness. Otherwise, what cannot be done is done, and it seems to be something that makes a difference, but the consequences are nothing.

Now China's fundamental problem lies in the confusion of administration, in which the dialectic of the administrative component is another main line, that is, management and supervision, unfortunately, the same problem arises on this main line, and the regulatory system is out of the public, see my ** "On China's Power Closed Loop", this can not be sent on the platform, but there is a special interpretation on my namesake and a certain sound's **platform.

The root cause of the economic problem lies in the fact that the leader of the integration of politics and business is divorced from the masses. They have formed a whirlpool of wealth appreciation, wealth mergers are getting bigger and bigger, and wealth accumulation is accumulating faster and faster, resulting in 1% of the people controlling 99% of the social wealth. As a result, the vast majority of people have lost the increase in wealth, and finally the market supply and demand are out of balance, and the economic crisis erupts.

In fact, in the operation of the economic market, the relationship between the seemingly opposing propertied class and the proletariat is mutual. To be reasonable, you have to tell both sides of him. Let's ask, if there is no market consumption support from most people, a small number of people's intelligence, diligence and enthusiasm are also useless heroes. In the same way, if there are not a small number of people who are willing to take risks, gamble all their worth to start a business, create jobs and convenient lives for most people, and bring benefits to the general public by balancing the wealth of the rich, the survival and development of the general public will not be as desired. So it's all mutual.

Our society should not only understand entrepreneurs, but also provide them with policy and financial support at the beginning of their business; Entrepreneurship that represents the future development direction of the market should also select those with potential to inject capital into it. At the same time, it is also necessary to take into account ordinary people, ensure the rationality of their income distribution in legitimate employment, and give feedback on welfare after the increase of social wealth. But the root of all this lies in the actions of the administration. The so-called political communication and harmony, all social problems lie in friendly administration.

At the same time, we need to understand the past. Our country's **, in every period, has its historical mission. In the mission of the reform and opening up period, it is necessary to gain a firm foothold and develop steadily in international competition, and it is bound to form the consistency of national capital, so many problems that arise are also excusable. In the past, China's economic mission was to join the WTO, connect the fast track of world economic development, and enter the international division of labor system, so as to enrich ourselves.

At the same time, we need to understand the future because our historical mission has changed. The current international situation is that on the surface it is still economic globalization, but in essence, it has become a dragon and tiger struggle between China and the United States. The goal of these two is to control the international industrial chain, the United States is guarding the industrial chain highland, and China wants to rush into this high ground. This is the inevitable direction of the national strategy in the coming period, in this process, the external force given to China by the world economy has reached the limit, and China must stimulate greater potential through internal changes in order to achieve this goal. This is also determined by China's current international status, and it is an inevitable stage.

When we know the strategic tasks of the country at this stage and understand the parts that need to be improved, we must make targeted changes to activate this potential. And the main force of this potential is the largest number of ordinary people. An economy without mass participation, even if the data is good, because it does not reflect real commercial circulation, it is a false prosperity.

Our ancestors said that we should hide the wealth from the people. Because the economy is an economy with people, and the core of economic operation is the participation of the whole people, anything that is separated from the masses will become a castle in the air, and it will collapse sooner or later. Human creation and human demand are the key to promoting the development of production and promoting economic circulation. Among them, the most critical group is the working class who can generate value through labor and use labor income to make consumption.

When we find the root cause of the problem, it is much easier to solve it. Because the great road is the king, all things belong to their own kind. As long as we follow the principle of returning to the road and the road to the road, we should adopt the method of engaging in politics without doing business and not participating in politics, separate the integration of government and business, and build an ecological environment in which the administration and the market go their own way. The market is responsible for increasing efficiency, and the administration is responsible for improving fairness. In this way, their closed loop will be truly perfected, and the whole people will be included, and finally the market will be active.

When we have formed a friendly political and business ecology, our entrepreneurs no longer have to worry about the outflow of social wealth. Our **, don't have to worry about anything, do it with confidence, and finally retire for the rest of your life. Our people will also concentrate on their work and live with peace of mind.

In this way, the orderly development of the national economy can avoid many problems, such as inflated GDP due to policy needs, the endless image projects of local governments, the loss of state-owned assets, the outflow of social wealth, and serious polarization. At the same time, it solves various social problems caused by economic income, and finally allows the country's development to jump out of the historical cycle rate and achieve long-term prosperity and stability.

If our society is aware of this problem, we can carry out a complete set of economic transformation plans that are in line with the national strategic direction, in line with the current actual situation, and in line with the future social development, and create an economic system in a dialectical state. For the specific strategy in this regard, I have written a special article called "On the Endogenous Reform of China's Economy", and I look forward to you looking back. That's the end of today's topic, thank you, goodbye.

Related Pages