"Discharge water directly?"
Wang Shan frowned and explained the consequences of releasing water directly: "If we release water without the "Infrastructure Plan", there is a chance that Longguo currency will depreciate significantly, and the economic pattern will likely change from deflation to inflation."< br>
"It's not a probability. If you send money directly, you can basically confirm substantial inflation."
Qin Long said in a deep voice.
Perhaps many people do not understand what economic deflation and inflation are.
Economic deflation does not mean that the total amount of money decreases, but that there is less money circulating in society and more deposits in banks.
To determine whether the economy is deflation or inflation, you only need to pay attention to the M2 currency data released by the National Bureau of Statistics.
What is M2 currency?
M2 currency is also called broad money, which includes M0 cash currency, M1 narrow currency, time deposits and market funds, etc. It is the total amount of domestic currency in Dragon Kingdom.
M0 cash currency refers to cash in circulation.
M1 narrow currency is MO cash currency plus demand deposits of enterprises and units.
If the economy is experiencing deflation, the amount of M0 cash money and M1 narrow money will decrease, while the amount of M2 broad money will increase.
Since a large amount of M0 and M1 currencies have entered banks and become M2 currencies, generally speaking, in order to cope with economic deflation, the country will choose to frequently cut interest rates.
1. It can reduce deposit interest.
The second is to force money out and stimulate the economy.
Compared with economic deflation, the situation of economic inflation is completely opposite.
Economic inflation means there are too many M0 and M1 currencies. Translated into the vernacular, it means that there is too much money on the market, and productivity cannot keep up with the speed of printing money, causing the money to no longer be valuable.
If you want to recover the money on the market, the best way is to raise interest rates.
Use interest rate increases to turn M0 and M1 currencies into M2 currencies, reduce the money circulating in the market, and trade time for space.
Whether it is economic deflation or economic inflation, the people at the bottom will be the most seriously injured.
Because economic deflation will make people unable to make money, while economic inflation will make the money in their hands worthless.
If in an extreme period of time, economic deflation switches to economic inflation, many people at the bottom will go bankrupt instantly. This is something neither Wang Shan nor Qin Long want to see.
"You may have misunderstood. I am not suggesting that the country directly transfer money to people's bank cards like Europe and the United States, but rather invest funds to improve the pension and medical security systems, and if possible, even add education."
Seeing the worry between the two people's eyebrows, Chen Xing expressed his inner thoughts.
Why does the economy deflate?
Why are people unwilling to spend money?
The first is the world economic situation. The US dollar interest rate hike has caused liquidity to return to the United States, making it difficult to earn money.
Second, people need to save to guard against possible risks in the future.
For example, medical care and education are topics that every family cannot avoid.
Many people may think that since the implementation of nine-year compulsory education, education expenditure will not cost much. In fact, education is even more expensive than medical care.
Better kindergartens cost tens of thousands of yuan per semester, while worse kindergartens start at 2,000 yuan.
In addition to kindergartens, there are also cram schools and interest classes. If you take the art route, it is not surprising to spend tens of thousands a year.
When you get to university, in addition to tuition fees, you also have to pay for living expenses.
If your grades fail and you study in a private college, the tuition alone will cost between 10,000 and 30,000!
Many students actually use state loans to go to college.
It is precisely because of the need to take precautions and deal with possible situations where money will be spent in the future that people are forced to make large deposits.
"It makes sense."
Wang Shan's eyes suddenly lit up.
Qin Long even applauded and analyzed: "Injecting water into the security system can not only fundamentally save people money, but also stimulate consumption to a certain extent."
"That's right."
Zhang Zhongchun echoed and continued: "Expenditures on education and medical care have been reduced, pensions have increased, and people are more willing to spend the spare money they have."
"I agree."
"It is not possible to release water directly, but it is still possible to release water indirectly."
Yin Songyang and Hao Zidong both expressed their opinions.
Although they are not academicians of economics, they are still intellectuals and have a certain understanding of the underlying logic of society.
In the past, water was released to coordinate with infrastructure construction, but in fact, water was released indirectly.
Because once the "Infrastructure Plan" is launched, money can naturally flow through workers and be mapped to all walks of life.
Why can water be released only indirectly and not directly like Switzerland and Norway?
1. The founding of the People’s Republic of China was relatively late.
2 is the large population.
If the population of the Dragon Kingdom drops sharply to the population of Switzerland and Norway, let alone education, medical care and pensions, everyone can even have their own private jet.
But the reality is that with a population of 1.3 billion, even if each person is only given 100 yuan, the total amount of water released will reach 130 billion. Even if 1.3 trillion yuan of water is released, each person will only receive 1,000 yuan.
Therefore, money can only be distributed indirectly, specifically, and then relevant groups can drive the operation of the entire social economy.
"But..."
Suddenly, Wang Shan thought of something, looked at Chen Xing and said: "According to the current national financial level, should medical care, education, or pensions come first?"
Chen Xing's economic judgment and way of thinking were recognized by him, and he was eager to know Chen Xing's thoughts.
Faced with the question, Chen Xing thought for a few seconds and gave the answer: "I think it is medical treatment."
"Why?"
Wang Shan asked.
He originally thought Chen Xing would talk about education.
In developed countries, education always comes first.
You know, even if it is the United States, when it formulates global trade, the only industry it retains is the education industry.
Another example is the Jewish community, which attaches great importance to education. Even if they try to sell it, their descendants will receive a good education, because history has proven that education is always the best way to improve their horizons and horizons.
Chen Xing did not hesitate and expressed his opinion: "Let's talk about pensions first. If they are retired employees, they will most likely not be short of money. The current pension limit is very high."
"If you are a farmer, an increase of 100 or 200 yuan is of little significance, because they will most likely be reluctant to spend it and will only save it for future generations, so they cannot change the status quo."
"The same goes for education." After taking a breath, Chen Xing continued: "Currently, the bulk of education expenditures are kindergartens, cram schools and universities."
"One fact we must accept is that kindergartens and cram schools are only for well-off families. Only some poor families who value education will send their children to kindergartens and cram schools."
"Since we must make up our minds to change the economic deflation and adopt a large-scale fiscal release, without launching the "Infrastructure Plan", only the medical field can catch this huge flood and map it to every citizen."
After the words fell, he added: "After all, in a hundred years of life, who will not get sick, and who can guarantee that he will not get sick."
Chen Xing's heartfelt, sonorous and powerful words stunned Wang Shan, Qin Long, Zhang Zhongchun and others.
They didn't expect that a private enterprise CEO would think so far.
What is a people’s entrepreneur?
This is the people’s entrepreneur!
Wang Shan fell into silence at this moment. He was analyzing what Chen Xing said word for word and judging the feasibility.
After a full thirty seconds of silence, he already had his answer.
Just as Chen Xing said, since it has been decided to release the water, this huge flood must be reflected on everyone.
Wang Shan has not forgotten that the Dragon State is a country where the workers and peasants are the main body.
According to the census and the National Bureau of Statistics, as of 2016, there were 300 to 400 million farmers in Long Country.
These 340 million farmers still rely on farming to make a living, and they have very limited spare money. The only field of water injection that can maximize their profits is medical care.
Compared with education and pensions, solving the problem of "medical treatment" can obviously reduce the burden.
After all, who in this world never gets sick?
Once universal free medical care is realized, 340 million farmers will be direct beneficiaries, and they will no longer have to worry about having no money for medical treatment.
"I, Wang Shan, will keep this proposal in the medical field in mind and will hold a special meeting to study it when I return to the imperial capital."
Wang Shan responded solemnly.
"There is indeed a need for construction in the medical field to solve people's livelihood problems and also facilitate the flow of funds." Qin Long said in support.
"Yes, no one can guarantee that he will not get sick. If our income is low, we must save money to prevent it in the bud."
"Medical care is indeed suitable for letting go."
"If we want to build free medical care for all, I will definitely vote for it."
"But the question comes again. If free medical care is implemented, will it cause a medical shortage?"
Zhang Zhongchun asked the key question.
Medical cash runs are very common in top hospitals.
Some people take advantage of the reimbursement and go to a tertiary hospital whether they have a fever or a cold or the weather turns cold and call a specialist to consult a doctor.
Are they wrong?
Strictly speaking, there is nothing wrong.
But from the perspective of medical resources, there are people who need this expert number more than they do.
Nowadays, it is difficult to get expert accounts in tertiary hospitals. If free medical care is implemented for all, Zhang Zhongchun is afraid that medical resources will be excessively wasted. After all, who doesn’t want to get a few free things?
Just like selling health care products with free eggs, it always attracts a group of elderly people to queue up to get them.
"This can be graded."
Chen Xing also thought about this problem and continued: "Farmers are basically in rural areas. The medical resources they have access to are basically county hospitals. Then we can make county hospitals free of charge, and people living in county towns, they can go to county hospitals for free. Municipal hospitals are free of charge, and people living in cities are free of charge at designated locations.”
"If it exceeds the capacity of county hospitals or city hospitals, it can be sent to provincial tertiary hospitals, and additional capital investment can be increased to have at least three tier 2 hospitals in a county, at least three tertiary hospitals, and five tier two hospitals in the city. , it is completely possible to achieve universal medical care.”
Just after finishing speaking, Chen Xing smiled and said: "Of course, this is just my idea. The investment in building universal medical care must be huge. After all, our country has 1.3 billion people."
"Yeah, I've written it all down."
Wang Shan nodded.
His expression and eyes were very serious, and he already had some recognition in his heart of Chen Xing's talk about the big scandal in the medical field.
After writing down Chen Xing's proposal, he suddenly asked: "By the way, what is the new power supply agreement?"
Hearing this, Chen Xing nodded and expressed his inner thoughts: "Aren't we currently supplying power to Southeast Asian countries? Since room-temperature superconducting materials have come out and we plan to develop controllable nuclear fusion, we can completely expand the power transmission business. The scope expands further.”
"The first is to reformulate the electricity settlement currency and replace the US dollar with Longguo currency."
"The second is to pave a profitable route for nuclear fusion and establish a community of interests."
Since the State Grid not only supplies power to Longguo, but also to Southeast Asian countries, and even has business dealings with West Asian countries, there was a time when Longguo currency actually wanted to be linked to electricity.
However, considering the limitations of electricity and the lessons learned from silver, Longguo currency was ultimately not linked to electricity.
Now is the stage of competition between the Dragon Country Coin and the U.S. dollar. Both sides are trying their best. If the Dragon Country Coin is added with the "electricity" chip, it may be able to win the recognition of more countries.
As for establishing a community of interests, Chen Xing considered that after the advent of controllable nuclear fusion, other countries might spy on him.
If at this time, any country that enjoys "cheap electricity" is willing to step forward, then the Dragon Kingdom will not be alone.
The common man is not guilty, but he is guilty of carrying the jade. Chen Xing has considered everything carefully.
The first "cheap electricity" countries to be connected are the Mao Xiong in the north and the Ancient Elephant Kingdom in West Asia.
As long as Mao Xiong and Ancient Elephant Kingdom are willing to form an "electricity alliance", other countries will not dare to act rashly, no matter how coveted it is.
“This proposal reminds me that we still use U.S. dollars for electricity settlement, and we do need to convene a national-level meeting.”
Wang Shan nodded slightly.
"I have to say that Mr. Chen sees things further than I, the president of the Academy of Dragon Science. If I could, I would have you give up business and go into politics, haha." Qin Long said with a mocking tone.
"Actually, there is no need to give up. After all, Longxing Group cannot be without Mr. Chen at the helm. We can jointly recommend to Shenzhen and let Mr. Chen nominate the representative seat."
"This is a good suggestion."
"I agree."
As soon as Zhang Zhongchun finished speaking, Yin Songyang and Hao Zidong quickly agreed.
Businessmen who reach a certain height can run for representative seats.
Rebus, Xiao Ma, and Ms. Dong all have their own representative seats, because these private entrepreneurs represent the domestic economic market to a certain extent, and the suggestions they put forward are definitely more suitable for the market.
Facing the suggestions of several people, Chen Xing did not refuse and said with a smile: "Let's not talk about this for now. Let's talk about it later when we have the opportunity."
"The most critical thing now is how to build a controllable nuclear fusion project."
As long as controllable nuclear fusion comes out, the difficulties encountered by the Dragon Kingdom will be solved and the great rejuvenation plan will become a reality.
After Chen Xing finished speaking, Wang Shan and Qin Long looked at each other. The latter lowered his voice and said a shocking secret:
"We have already laid out the controllable nuclear fusion project and have achieved certain results. If Mr. Chen has time, he can take the technical staff with us to the northwest to visit the engineering experimental site."
(End of chapter)