Recently, at the 2022 Phoenix Finance Summit, economist Guan Qingyou suggested that money be directly distributed to low- and middle-income groups every month for three to five years to boost consumption first.

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Recently, at the 2022 Phoenix Finance Summit, economist Guan Qingyou suggested that money be directly distributed to low- and middle-income groups every month for three to five years to boost consumption first.

He said that now that is expanding domestic demand for , it is actually very difficult to start consumption. After so many years of shouting, why can't it start? Just because no money was given.

(1)

Is he right? Yes, I don’t buy delicious and fun things because I don’t want to buy them? That's because I don't have money to buy it, right?

If the country sends me money and I can immediately buy something I like when I see it, how happy would such a life be?

But wait a minute, if boosting consumption or governing the country is really that simple, why haven’t the top officials used this solution?

Especially this is not really a new idea. The United States, my country's Hong Kong and other places have already distributed money to all residents.

There must be something wrong somewhere, and it is an insurmountable problem, which is why we have not implemented this simple solution.

(2)

Is it because of the definition of low- and middle-income people? This is really difficult to handle. For example, I consider myself to be a low- to middle-income person, but the country obviously doesn’t think so.

Because I still have to pay taxes every month, the state said that your income has reached the tax quota, but you actually think that you are low- to middle-income?

But my living conditions are really bad. As soon as I get my monthly salary, I use it to pay off my house and car loan, and there is still a little money left to use to live a tight life. Isn’t this miserable?

I’m going too far. In short, it’s really difficult to define low- and middle-income. In addition, many people don’t even have social security or formal jobs. Everyone feels miserable. Isn’t this a mess?

Then just make the move bigger and everyone gets paid. This seems to be the way it is done in Hong Kong. As long as you are a Hong Kong citizen, you will receive a subsidy on your bank card every month.

Okay, let’s get to the core of this problem right away. Now every adult basically has a bank card, and the state also holds everyone’s household registration information, so is it okay to transfer money to the resident card on a per-capita basis?

The answer is no, because it involves two questions. The first is where the money comes from, and the second is how the money is spent.

(3)

Regarding the first question, some people say that the central bank can just print money directly. It is simple and crude. Well, it is indeed very simple, and then inflation will happen immediately!

You get the money today, and when you go to the breakfast shop for breakfast the next day, you find that the price of buns has doubled, because the owner of the bun shop was informed by the flour shop the day before that the price of flour has doubled.

If printing money out of thin air can solve the problem, then everyone will have to work hard and wait for the country to send money.

The answer to the second question is even simpler. Although I said earlier that if the country gives me money, I will buy it, but if the money is really given, will I spend it all?

No, I'm worried about what to do if I get laid off by the company. I also need to keep some money in case I run out of money for medical treatment. Come on, I'd better put the extra money in the bank!

Do you think I’m the only one who thinks this way? Most people are faced with this situation. In the end, the country gave everyone 1,000 yuan per month, but when I looked back, it was all in the bank savings account. This is a feeling of loneliness!

As for the workarounds for issuing consumer coupons, everyone has forgotten that they were issued two years ago when the epidemic first came. Later, they found that they either didn’t work, or they were hoarded by scalpers and resold at high prices. In the end, they were all in vain.

To put it bluntly, after three years of epidemic, everyone’s expectations for the future are pessimistic. In reality, protection is lacking. If I can be sure that spending money casually will be fine, then it must be that I am drunk today and will worry about tomorrow!

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