Source: People's Daily - Theory Channel Original Manuscript
People's Publishing House Central Party School Publishing House
Editor's Note: In late August 2020, the book "Basic Issues of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era" was officially published by People's Publishing House and Central Party School Publishing House. The book outlines the main points and uses points to lead the whole, and deeply explains the rich connotation, core essence and distinctive characteristics of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. The People's Daily Theory Channel excerpted the chapters and serialized them for readers' enjoyment.
Supply-side structural reform was proposed shortly after it was proposed, and some people equated it with the Western supply school. To this end, Comrade Xi Jinping clearly pointed out: "First of all, I must make it clear that the supply-side structural reform we are talking about is not the same as the supply school of Western economics. We cannot regard the supply-side structural reform as a replica of the Western supply school. We must also prevent some people from using their explanations to promote 'neoliberalism' and take the opportunity to create negative public opinion."
The Western supply school is an economic theory that arises from the "stagflation" problem that arose in the United States and other Western countries in the 1970s. The supply school believes that stagflation is entirely a cumulative effect caused by the long-term implementation of Keynesian demand management policy. In terms of policy propositions, one is to reduce taxes, especially marginal tax rates, and the other is to reduce government intervention. The theory and policy propositions of the supply school were valued by then-US President Reagan. In the 1980s, it became the basis for the Reagan administration to formulate policies, forming the so-called "Reagan Economics".
, and supply-side structural reform is the product of the combination of the basic principles of Marxist political economy with Chinese practice. In the Introduction to "Critique of Political Economy", Marx analyzed the dialectical relationship between the four links of production, distribution, exchange and consumption in the social reproduction process. In the "Das Kapital", Volume 2, Chapter 3, "Reproduction and Circulation of Total Social Capital", he discussed the appropriate proportional relationship between the two major categories, and profoundly analyzed the balance between supply and demand in quantity and structure. These ideas are of great guiding significance for my country's supply-side structural reform.
The main difference between the supply-side structural reform and the Western supply school is that
1 is that the theoretical basis is different. The theoretical basis of supply-side structural reform is Marxist political economy, which is Xi Jinping's economic thought on socialism with Chinese characteristics in the new era. The theoretical basis of the supply school is neoliberalism based on "market universality" and "Say's law". Therefore, unlike the laissez-faire idea of the supply school opposing government intervention, supply-side structural reform implements economic policies in accordance with the idea of "combining market with government" of "making the market play a decisive role in resource allocation and better playing the role of the government", emphasizing the dialectical unity of supply and demand.
Second, the policy means are different. The supply school regards tax cuts as an important part of its policy program. In addition, in order to stimulate investment, the Reagan administration has also implemented measures such as accelerating depreciation and investment tax credits, and advocates deregulation, balance budgets, and reduce inflation. Supply-side structural reform is to use reform methods to promote structural adjustment, reduce ineffective and low-end supply, expand effective and mid-to-high-end supply, enhance the adaptability and flexibility of the supply structure to changes in demand, and improve total factor productivity. Tax reduction is only one of the contents of supply-side structural reform. In addition to tax reduction, supply-side structural reform emphasizes the adjustment of the supply structure through reform and implementing the "three cuts, one reduction and one supplement". At the same time, more market-oriented and legal means are used to work hard on "consolidation, enhancement, improvement and smoothness" to improve the quality of the supply system.
Third, the reform goals are different. The goal of the supply school's reform is not only to get out of the dilemma of "stagflation" at that time, but also to return to the laissez-faire market economy tradition advocated by classical economics, and to change the government's intervention in the economy over the past few decades to achieve long-term economic growth and prosperity. Although the ultimate goal of supply-side structural reform is to achieve long-term economic growth and prosperity, the specific goals are hugely different from the supply school.The goal of supply-side structural reform is by no means implementing a laissez-faire market economy, nor is it getting rid of the troubles of "stagflation", but it is to focus on improving the quality and efficiency of the supply system, enhancing the momentum of sustained economic growth, promoting an overall leap in my country's social productivity level, and enabling my country's supply capacity to better meet the people's growing needs for a better life.
(Note: This article is part of the second section of Chapter 8 of the book)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-