China's economy is currently entering a deflationary era, and everything is falling in price. Buildings, cars, beef, food, most things are falling in price.
The market has its own rules, and some things cannot be controlled. Printing a large amount of money will cause prices to rise. The printed money must be circulated to be useful. If no one borrows money from the bank, it will not have the effect of inflation.
After the collapse of the real estate market, Japan's economy has been sluggish for ten years, and the consumption is bleak. China may follow suit.
The average person may not be able to figure out whether it is overcapacity or the impact of real estate. Why can't many things be sold? People have no money in their pockets and no desire to buy.
I think it is related to social distribution. Why do I say that? Look at how much money young people have in their pockets. A college graduate, if he does not have family support, can't even get married.
A hard-working worker, a college student, is not afraid of being laughed at by everyone, but he only has a salary of 3,000 yuan. Even retired teachers have a pension of 5,000 yuan. The salary of retired teachers is higher than that of employees. Is it normal?
Raise the wages of workers and college students, they are the consumption army. Retired people earn tens of thousands of yuan a month, and they have everything they need. How can they afford to consume if they deposit their money in the bank and earn interest?
It has been more than 40 years since the reform and opening up in 1979. Many things have changed dramatically. Reasonable distribution of wages is very important.
Except for state-owned enterprises within the system, private enterprises generally have low wages, and consumption cannot keep up with market changes.
No one comes to the bank to borrow money, the real estate market is sluggish, the car market is more expensive, and the stock market cannot maintain 3,000 points. The economy will definitely have negative growth in the future.
Without drastic rectification, the will to survive by cutting off one's arms, and the idea of burning the boats, the economy will be difficult to recover.
The downward trend of the real estate market is inevitable, so let it fall. After the collapse of Japan, there were no catastrophic consequences. Starting over again is also an option.
Being afraid of wolves in front and tigers behind, tying hands and feet may be more detrimental to development. Breaking the old and establishing the new, moving forward boldly, may create a new world and lead the economy to move forward.