Chapter 26 4. How to expand domestic demand

●Our problem today is not a problem of insufficient demand, but a problem of poor people. ●Public construction is a one-shot deal, while private economy will snowball. Don't always talk about increasing consumption, is it possible to increase supply?What is increasing supply?It is definitely not to ask companies to expand supply during the recession, which is a misunderstanding; it is to allow private companies to make more money. After they make more money, they will give employees more salaries, and employees will get more money. After getting a higher salary, he dared to spend money when he was rich.

Our problem today is not a problem of insufficient demand, but a problem of poor people.That's why our consumption is very small in GDP, because you have no money, it's as simple as that. And recently, many people have been locked up in the stock market again, and they have no money. How do they spend money?Therefore, creating wealth for the common people is the most important thing today. How to create wealth is to use the power of the government to give 4 trillion yuan to private enterprises to help enterprises earn more profits.And after the company makes more profits, it will give employees more salaries.After employees get their salaries, they will spend and buy a lot of things, and then the company can make more money. After the company makes more money, it will make reinvestment, and then there will be a multiplier effect.For example, if you invest 1 yuan, you can probably earn 5 yuan to 10 yuan in investment benefits, and then make more money to hire more employees, and then make more money, forming a snowball effect.

If the investment is in infrastructure construction, it is a one-shot deal. For example, to build a highway, hire a bunch of people to build the highway, and when it is finished?unemployment.How to do it?Create a second one.Get them employed again.What if the second expressway is finished?Unemployed again.Looking back, the first expressway was torn down and then re-employment. After the demolition, he was unemployed again, and then the second expressway was torn down to re-employment.Because demolition of roads also requires people.Everyone should pay attention, whether you build expressways or demolish expressways, both can increase the growth rate. It is not that GDP will decrease after demolition of expressways, no.So what's the easiest way to do this?Build one and tear down one, tear down one and build one.You can increase employment forever.But don't you think it's a little ridiculous?Our investment efficiency in the public construction field is already very low, our efficiency has been reduced by 3 times, and the number of employees is limited. If we still invest a lot of money now, it is better to invest these funds in the private economy and let it generate More benefits.Therefore, public construction is a one-shot deal, and the private economy will snowball.Therefore, do not simply talk about expanding domestic demand today. Although demand is important, at this moment, it is a new idea to create demand from supply.