229, Cynical Bao Deputy Director
The economy is the foundation of the country and the soul of the people. It is particularly worthy of attention for a leader who wants to make some contribution. £∝
Of course, Gu Yang would not forget that he would strive to achieve immortality at the tenth level of the system. He must make economic problems clearer in order to achieve comprehensive development more reasonably and faster. Technical breakthrough alone is far from enough, and it lacks the most important coordination and guidance.
When looking at the relevant documents of the Municipal Development and Reform Commission, Gu Yang couldn't help but frown. He couldn't bear it anymore. These development outlines were still stuck in twenty or thirty years ago. The concept was outdated and he only wanted to develop some ordinary traditional projects. The problem was that these traditional projects had long been oversaturated in the market. What was particularly serious was that the city also adopted strict local protectionism. Many products outside could not enter Mengzhou at all, so as to protect local enterprises to continue to survive.
The harm of this protectionism is very great. It will inevitably greatly restrict the enthusiasm and competitiveness of enterprises, seriously hinder economic exchanges between regions, and run contrary to the general trend of social division of labor and cooperation, which is a serious regression in history.
The National Development and Reform Commission is a core department of regional design and development planning, and its status is very important. Gu Yang knew that if he wanted to implement his development philosophy, the National Development and Reform Commission must take it seriously. What is more important is not to take it, but to truly make the National Development and Reform Commission consciously become its own pawn. Only by first changing the concept of the main leaders of the National Development and Reform Commission can we do it.
In the past, when Wangxi was carrying out a vigorous construction, Gu Yang did not actually have a deep understanding of the economy. He achieved temporary success mainly through the earth's system and relationships. However, relationships are rare resources and can only take care of the interests of a few regions. Once in the future, the relationship will lose its meaning. Moreover, I can't jump on the stage for a few years and will eventually rely on myself. As for the benefits of the system, it is certainly expected, but this is ultimately technical. Without solving the guiding ideology of economic development, it will not be able to solve the serious resistance that is inevitably generated by a huge and complex economic system. It is always impossible to make full use of the full leap. The faster the development, the more problems it will be.
In Mengzhou, Guyang wanted to solve the guiding ideology of economic development. Of course, he also felt that his current understanding was not profound enough and needed further improvement in practice. Although he did not plan to make a super jump like Wangxi, he would definitely have his own distinctive characteristics, which is the goal he was committed to.
After looking through a few pages of the National Development and Reform Commission's documents, Gu Yang couldn't bear it anymore, so he threw it aside, rubbed his temples, thought for a while, picked up the table machine on the table, and dialed a number directly.
Soon, the phone was answered and Bao Yuhuan, deputy director of the National Development and Reform Commission, heard the tepid voice: "Hello."
Gu Yang frowned slightly and said politely: "Hello, Deputy Director Bao. I am Gu Yang. I want to invite you to sit in the municipal government and discuss economic issues. Do you have time?"
Bao Yuhuan was silent for a moment and replied, "I'll arrive in half an hour."
Gu Yang said: "Thank you for your hard work..."
After hanging up the phone, Gu Yang looked around his slightly small office. It was really not easy to find a member of the Standing Committee and Deputy Mayor. It was like a township mayor's office. He was so poor that he was really not used to it.
He does not have high requirements for the working environment, but he is not a person who likes hard work. It is not a commendable thing to do. It only means that the economy here is very bad. Of course, a good working environment does not prove that the economy of a region is very good, but the working environment of a region with a good economy is definitely good.
Gu Yang prepared a special can of tea, which was not spiritual tea, but it was definitely much better than Tieguanyin and other types.
Gu Yang attaches great importance to Bao Yuhuan, who met and talked about some economic issues on the train, because this is Bao Shou's daughter. He is preparing to open a breakthrough from here and instigate him to rebel against Bao's conservative economics. After all, Bao Yuhuan was a very enthusiastic economist in the past, and had many novel concepts. He was actually relatively open in his thoughts, but he was probably affected by the economic situation in recent years and became more pessimistic. In addition, he became inherently admirable for his father, and turned into a turtle that developed the economy.
Gu Yang decided to give this talented economic woman a few more powerful medicines, try to change her concepts and inspire her enthusiasm and fighting spirit. Because the results of using the systematic search, this is a rare good general to achieve the development of Mengzhou. Moreover, she is Bao Shou's daughter. The fortress is easiest to break from the inside, and the people closest to Bao Shou will be rebelled, with the best effect.
Half an hour later, Bao Yuhuan, wearing a light gray women's suit, came to Guyang's office on time.
Gu Yang stood up and greeted him warmly, "Deputy Director Bao, please sit on the sofa over there."
Bao Yuhuan nodded, walked a few steps, and sat upright on the somewhat old yellow sofa.
Gu Yang personally made two cups of tea and served it. He sat down on the sofa opposite Bao Yuhuan through the coffee table, "Let's have some tea first."
He grabbed a cup and blew the heat, and tasted it comfortably.
Bao Yuhuan felt a little awkward. The huge jump in the other party's identity still made her feel a little uncomfortable. A young deputy mayor was still his immediate boss. At that time, he was deliberately or unintentionally posing as a leader on the train, which was simply a joke.
She also picked up the cup and blew it, and took a sip, with a hint of surprise on her face, "Where did you buy this tea? It's very good."
Gu Yang downplayed: "I can give you a can if you like it," he said.
Bao Yuhuan was polite, "Why are you so embarrassed?" While continuing to take another sip, it felt even more mellow and refreshing.
Gu Yang said lightly: "Just just a pack of tea, don't be so polite, just take it away when you turn around."
"Thank you then." Bao Yuhuan, who had liked drinking tea, was never polite. She had never tasted such a good tea before.
After the two finished tasting the tea, Gu Yang continued to make two more cups. Back on the sofa, he looked at Bao Yuhuan with a relaxed look on his face, "It's nothing important to ask you to come this time, so I'll just talk casually. Last time we were quite speculative on the train, and I feel that you are a very thoughtful person. The National Development and Reform Commission is a key department to study how the development of the region is very important. First of all, we should correctly understand various economic issues. If we cannot correctly understand, it will be difficult to make correct decisions."
"Yes." Bao Yuhuan felt deeply, "It's a pity that our officials generally do not have a deep understanding of the economy. They have fallen into a blind misunderstanding of eagerness for quick success and instant benefits, and many serious problems have emerged."
"What about?" Gu Yang asked with an interest and smiled.
Bao Yuhuan's face was a little heavier, "Inflation is a very serious problem. Now our country's total currency is rising at a rate of more than ten percent every year. This harm is very great, which is equivalent to directly plundering the wealth of the people. After deducting inflation, the growth rate of GDP is actually not that great. We are deceiving ourselves."
Gu Yang nodded slightly, "What you are talking about is indeed a problem. We are now overflowing with Keynesianism. From a theoretical perspective, printing money can promote the use of surplus labor, and in fact it does have this effect. Keynes has had this theory that when a country's labor force has a large surplus, the more printed money can be digested by new employment, that is, the money is prepaid so that people can produce more products to realize the corresponding value of money. In fact, printing money is equivalent to providing people with the opportunity to work and can produce more products. Without this money, a large amount of labor can only be idle and cannot produce corresponding products.
Under the market economy, people cannot be forced to work. Only money can make people work. In fact, money is just a means of distribution and exchange, which is equivalent to promising people that as long as they work hard, they can get corresponding products. In fact, it is also people who work to produce these products. The key is the opportunity to work. Without money, there is no opportunity to work. Printing money is not just inflation, but also creating opportunities for people to work. As for the rise in prices, it is also cyclical, sometimes it rises fast, sometimes it rises slowly, and sometimes it falls, because there is a time difference between consumption and production. A certain commodity is in short supply and rise, which will inevitably stimulate people to increase production, which will inevitably reduce prices. However, it takes half a year to raise a pig, so the prices of similar foods are easy to be like roller coasters. This price fluctuation cannot be understood as inflation."
"What you said is a bit novel." Bao Yuhuan looked at Gu Yang with a little surprise, "But the prices have risen sharply, the people's living expenses are getting bigger and bigger, and life is getting tighter. I feel that people's lives are harder now than they were more than ten years ago. What you said doesn't make much sense."
"Haha." Gu Yang smiled slightly, "You are quite cynical."
Bao Yuhuan's face was heavy, "I'm not cynical, but I'm deeply worried about the future of the country. If economic development cannot give people tangible benefits, what's the point? The little wealth that people have accumulated has been diluted by printing money, forcing people to maintain their value in various ways, buy houses, hoard gold, and trade stocks. For example, real estate, the abnormal development in recent years has been very serious. Rich people own too many houses, which is a huge waste, because these houses can only be empty there. According to the living standards of most people, as long as the housing prices do not drop, it is difficult to afford a house. Most of these houses can only be demolished in vain.
Real estate wastes a lot of manpower and financial resources, which greatly hinders the healthy development of the economy. What's more serious is that high housing prices have greatly pushed up the cost of living in cities, which is driving people out of the city. We always say that we should speed up the urbanization process, but in fact, letting such high housing prices hinder urbanization. Let's not talk about hoarding gold. It is just a precious metal, essentially the same as minerals such as rare earths. Its so-called monetary attribute has long become history. The value of currency is determined by a country's economic level, that is, productivity. Gold has no real meaning, it is just a commodity that is hyped. More than ten years ago, the price of gold was less than US$300 per ounce, and later it was almost US$2,000. Now it is still more than US$1,300. You can see how inflated its price is, because in the past decade, the world economy has doubled at most in US dollars.
As for the stock market, I hate it very much. In fact, it has become an absolute strangle in wealth. Most people who enter the stock market will definitely be strangled. The wealth flows to a few people, further exacerbating the gap between the rich and the poor, turning the originally consumer-friendly group into extreme poverty, which will greatly hinder the development of the economy. The stock market is full of too many intrigues, and my country's stock market mechanism is also very imperfect, and all kinds of dark scenes are hard to describe, making it a legal place for robbery."
Gu Yang thoughtfully and pondered: "There is no perfect thing in the world. Stimulating economic development will inevitably lead to many problems. We must also look at inflation dialectically. Yes, the prices of many daily necessities and services have indeed increased a lot, but many high-tech products have not risen much, and even fell. For example, a 50-inch LCD TV, which is only three to four thousand yuan now. Twenty years ago, at the price at that time, people were rushing to buy hundreds of thousands. Others such as computers, mobile phones, etc., which are constantly improving performance, are all kinds of high-tech products that were unimaginable in the past, but their prices are within people's consumption capacity.
Therefore, inflation mainly expands in daily necessities and services. High-tech products are actually shrinking. While people enjoy various high-tech products, they must also bear the increase in daily expenses, because people who produce daily expenses also have to enjoy modern life. Their productivity has basically not changed. They can only increase their prices and increase their income in order to share the corresponding modern products. The great improvement in the productivity of high-tech industries must be shared by everyone, and they can only be shared by everyone. What is the significance of high-tech products that cannot be sold? Only when everyone's income increases can high-tech products be sold in large quantities. Like a barber shop, you cannot expect it to still only charge five yuan each time like ten years ago, because no matter how the economy develops, the number of people who need haircuts will not increase, and the efficiency of barbers will not increase, but haircuts are necessary for people, and it is normal for the price to rise.
The more the economy develops, the greater the living expenses will be. Because the productivity of many traditional industries has basically not increased, but they are necessary for people. Therefore, these industries must share the achievements of various high-productivity industries in modern society in vain. The result is that prices of high-productivity industries rise little or even fall, and prices of low-productivity industries rise faster. This seemingly unfair situation is actually a balance. Without this balance, neither high-productivity industries nor low-productivity industries will survive. The former will not be able to sell products, while the latter will not make money and close business, which will result in a shutdown of the entire society.
In any case, people's quality of life has actually improved significantly, because the scope and types of enjoyment of modern people are far from comparable to those in the past, digital TV, large-capacity broadband networks, various entertainment, highly convenient transportation, etc., no matter which one, they are unimaginable in the past. We just don't feel their preciousness because we have been used to it for a long time. If we were accustomed to it, we would feel how wonderful our lives are and envious, just as we would be envious of the more exciting life a hundred years later. But in fact, people will live a hundred years later, and the more we enjoy, the more we will give, because everyone enjoys them, and the more exciting things will certainly require more effort. We cannot be used to enjoying the wonderful modern life while being tired. You said right?"
Bao Yuhuan said in a daze, looking at Gu Yang, who was still young, it was difficult to associate him with his age.
"What you said is indeed a little bit of reason, which inspired me a lot." Bao Yuhuan sighed with emotion, "But the situation is really bad now, printing money and plundering is always plundering!"
"You are attacking - policy!" Gu Yang pretended to be serious, "As a leader, you must be consistent with the central government. It is very important to be consistent in the pace."
Bao Yuhuan looked passionate, "I naturally have to support the right ones, and I have to put forward my own opinions if I am wrong. If I do something wrong, I have to do something wrong! I don't care about my personal future."
"You are still too young." Gu Yang shook his head.
Bao Yuhuan held his breath, "I am several years older than you!"
Gu Yang smiled dismissively, "This has nothing to do with age. As a leader, you have to see further."
After pausing, he said thoughtfully: "On the surface, printing money is plundering the people's wealth, but in fact it is also creating the people's wealth. Because the money printed can allow more people to participate in production and produce more products, this is the creation of wealth. In fact, the state's printing money is also used for production construction, taken from the people, used for the people, and finally returned to the people. You regard printing money as the state taxes to carry out production, which is essentially the same."
Bao Yuhuan was a little surprised, "You have a different perspective on the problem. I have to admit that what you said does make sense. But I am very worried that if inflation continues to develop like this, people will not be able to bear it one day. Because now everything is rising, but wages are not rising much, and actual income is declining. This is a very serious problem."
Gu Yang said heavierly: "It is no longer a problem of inflation, but the more serious one is deflation. Although there are slight increases in daily necessities and services, and the annual growth of the consumer price index CPI is still a few percent, the prices of industrial products have been negative in recent years, with a decline of just a few percent every year. Considering the annual increase of the total currency volume by more than ten percent, this means that deflation is already quite serious, which is much more harmful than inflation.
Although the number of various products is generally growing and sales is also increasing, the profits of manufacturers are getting smaller and smaller because the prices cannot rise. For consumers who are also producers, when the manufacturers make less profits, consumers' income will also decrease accordingly because the manufacturers cannot issue more bonus commissions. The result can only be that the manufacturers are desperately producing, but consumers lack money to buy, so the manufacturers are forced to lower the price. While ensuring the sales quantity, the profits are less and the money given to consumers as producers is less. The consumption power continues to decrease, and the price of products can only be reduced and the profits are less. This is a vicious cycle. Of course, because the prices of industrial products generally fall, although the prices of selling products are low and the prices of raw materials are also low, so they can be supported for a longer time, but it is a practical experience for manufacturers to make no money.
The problem is that daily living expenses are still rising, which greatly limits the continuation of this model, because people will inevitably spend more of their income on daily basic expenses, rather than various types of enjoyable industrial products that do not necessarily have. The more serious problem is that manufacturers generally have considerable debts. Even if the principal is not paid, interest alone is enough to make these manufacturers breathless. They cannot increase profits by reducing production, because some manufacturers reduce production, which causes the increase in product prices to only make the rest of the manufacturers that have not reduced production profits in vain. As competition, everyone can only work hard to produce and ensure their market share, and it is impossible to agree to reduce production at the same time. This is the inevitable result of competition.
I am worried that a large-scale credit crisis will cause a large number of manufacturers to go bankrupt directly. The situation facing the country is now in a dilemma. Continuing to use the additional issuance of a large amount of currencies to maintain production will make the manufacturer's profits increasingly zero, but will not go bankrupt immediately. But if the additional issuance of currencies is no longer possible, the entire production system that has lost its source of currency will be shut down in large quantities, and countless manufacturers will quickly go bankrupt, and the banking system will also have incalculable serious consequences. Such a situation is accumulated by long-term contradictions, and it will not be cold for a day. It is indeed difficult to solve such a dilemma!"
Upon hearing this, Bao Yuhuan's forehead was locked deeply and said thoughtfully: "Now, inflation of daily expenses and deflation of industrial products coexist at the same time. The situation is indeed very serious. Since you can see so clearly, is there any solution?"
Chapter completed!