Volume 8 Final Chapter Chapter 1081 Vested Interests
"Our country's current economic pillar is foreign trade, or more precisely, exporting low value-added products to earn foreign exchange. This issue is rather complicated, so let me explain it in a more popular way. Our products are exported overseas in large quantities at low prices in exchange for foreign exchange. As a result, similar products in China become less available, causing an imbalance between supply and demand, and thus becoming more expensive.
At the same time, the foreign exchange received increases the country's foreign exchange reserves. The country will print equivalent RMB and release it into society according to the total amount of foreign exchange and the established exchange rate. It is not quite accurate to say that it is equivalent. In fact, the country has been printing money in excess in recent years.
Not only are there fewer commodities in society, but a large number of extra banknotes are printed every year, so prices will naturally rise. This is inflation. A commodity that sells for 80 cents this year may only sell for 1.3 yuan next year. The purchasing power of currency continues to depreciate, which means that money will become less and less durable, and its value will continue to decrease.
Due to our country's special economic system, high inflation and currency depreciation will continue in the future. The risk of holding idle cash will be higher than any valuable commodity that can be stored for a long time.
From the perspective of currency depreciation, as a commodity, commercial housing prices will naturally continue to rise due to its commodity attributes and the impact of rising building materials and land prices.
As more and more money is generated, it needs to be circulated in order to create the value that the country needs. Wherever the money flows into, the price of goods in that area will rise. "
Nan Yi started to jump to the topic here. "Limited and controllable inflation is actually a good way to maintain the rule of a country's political system. On the basis of maintaining the overall economic growth and improving the living conditions of most people, inflation is to fleece the people. The wealth of the powerful at the top of the pyramid is more concentrated, and the middle and lower classes will be relatively poorer.
When most resources are in the hands of a few people, the majority of people at the bottom of the pyramid will be able to get fewer resources , the price of resources will be higher, and the minority of vested interests at the upper and middle levels of the pyramid will become richer. "
Nan Yi's face turned grim. "For the vested interests, they have money and can develop games that are only popular among the rich, such as antique calligraphy and paintings, luxury cars, yachts, and maybe private jets in the future. These games have no mass base, so they can be played however they want. Money circulates in these areas, so it doesn't matter if the prices of goods are raised to the sky.
Money must never circulate in large quantities in areas that are closely related to life. If there are problems with the materials that people rely on for survival, and they cannot survive and have trouble getting enough food and clothing, there will definitely be ambitious people who jump out to incite, conflicts will definitely break out, and society will definitely be in turmoil.
A country's political system continuously dilutes the actual purchasing power of its currency and implements a price stabilization system for daily necessities such as food. In this way, on the one hand, it ensures the basic survival . On the other hand, it allows the middle and lower classes to spend their surplus money on specific commodities, forcing them to work non-stop. This is the only way to ensure social stability and forward development.
Strictly speaking, twenty years ago, bicycles, watches, sewing machines, and radios were not necessities for ordinary people. Having them or not would not have any impact on our food and clothing problems. Therefore, it was very appropriate to maintain higher prices for these commodities, absorb idle funds in the hands of ordinary people, and allow money to circulate.
A little later, there are color TVs, refrigerators, and telephones. A little later, there are motorcycles and air conditioners. With the substantial improvement in the level of industrialization and the rapid economic growth, the amount of money issued has also increased rapidly. These commodities are all good tools for eliminating the liquidity of funds in the hands of ordinary people.
What next?
Car?
This is inevitable. The automobile industry is very important to a big country and it involves national security. Our country is vigorously developing the automobile industry. To promote the development of an industry, it is natural to make the products produced by this industry hot-selling. Therefore, in the near future, both policy and value orientation will push ordinary people to save money to buy a car.
As the automobile industry becomes more and more mature, costs will naturally decrease. With the popularization of automobiles and the influence of international car prices, the scarcity of automobiles will gradually fade, and the overall price of automobiles will definitely decline relative to the income of ordinary people.
In other words, the ability of cars to absorb people's idle funds will gradually decrease, and the coverage will become smaller. For people with relatively high incomes, in addition to buying a car, they will still have a large amount of idle funds in their hands.
So, which product can be used as the main force to maintain stability? "
Wenren Lanyue said softly, "House."
“Yes, housing involves many industries. As long as the real estate industry develops rapidly, it will drive the development of related industries and have a huge driving effect on the country’s overall economy.
Sister-in-law, since the central and local governments shared taxes, the relationship between the two is like that of our family. The central government is our parents, and the local governments are our two small families. We live our own lives behind closed doors, but at the same time we also have to pay some household expenses to our parents.
If we want to make life a little better for our family, we have to find ways to make more money from outside. If we are capable, we can live a good life for our family. If we are not capable, our life will be miserable and our parents will naturally feel distressed when they see us, so they have to help us.
If they have enough money, they can help directly. If they are short of money, they will call all their children together and say earnestly that your younger brother is having a hard time, and you older brothers should help him out.
This is the central government transfer payment proposed last year and implemented this year.
Local conditions are good and bad. Some have mines, some are very suitable for attracting investment, and their economic development will be faster than other places, and they can collect more taxes.
As for taxes, most of them are national taxes that must be paid to the central government . Local taxes are relatively small. If local governments want to carry out large-scale infrastructure projects, they can only find ways to increase the total amount of local taxes, or increase some fiscal revenue that does not need to be paid to the central government. "
“Land finance.”
Nan Yi said with a smile: "Sister-in-law, you are right again. It seems that I don't need to elaborate on the latter part. I will jump to the vested interests and say a few more words.
We have a history of 5,000 years, with dynasties constantly changing. Each dynasty would discredit the previous one. If the rulers of the previous dynasty were not so bad that they had sores on their heads and pus on their feet, how could they, who had seized the throne, maintain their righteousness?
Of course, this is something that only feudal dynasties would do. In the enlightened era, this kind of thing will no longer happen. However, we must study the main reasons for the demise of the previous dynasty, draw lessons and avoid making similar mistakes again.
A scholar's rebellion could not succeed in three years, and a peasant's rebellion could not get beyond the county. Throughout the dynasties, all the rebellions that were successful were always the ignorant peasants who died in the front, while the powerful people with a sense of the overall situation, wisdom, and resources stood behind them.
Therefore, generation after generation, the rulers have shown more and more preferential treatment to the powerful and wealthy, and the surveillance has become more and more strict. Just live your extravagant life, don't let your imagination run wild, and don't think about things that you shouldn't do.
What can the rich and powerful do to live a luxurious life? "
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