Brother Zhang from Beijing has been in the real estate industry for 20 years and is familiar with the industry. I am not a so-called "expert" and only use my 20 years of practical experience to help you answer your questions.
一
Many people in China are very envious of the discovery of gold abroad, and feel that it truly benefits the people. I also admit that this can indeed make the people at the bottom feel a sense of security. No matter what kind of security materials are distributed, it is not as reliable as cash, and it is also more flexible and practical.
Of course, some economists say that "if everyone gets paid, it means they don't get paid at all." This idea is wrong. If everyone doesn’t get paid, does that mean they get paid? If everyone works hard, can it be equivalent to not working hard? It doesn't make sense. Therefore, universal cash must have its advantages. Cash is liquidity and can stimulate the flow of goods and production in the market, thereby quickly restoring economic vitality.
But with such a good economic policy, why does China never use it?
What is China’s policy? It is investment, investment in infrastructure, or injecting loans into companies to help them survive difficulties and avoid bankruptcy. Even the money given out is in the form of coupons, and not everyone has one.
Why are there such big differences between the two systems of the East and the West? Can't China learn from the West?
二
Really cannot, because the systems of China and the United States are different. The United States has a capitalist system, and China has a socialist system.
What is the foundation of capitalism? It is freedom, that is, competition, that allows capital to play its role in regulating the market. So in the case of free competition, who wins, or who holds the power and voice? It must be a capitalist, or a spokesperson for a capitalist. So is the system they formulated really for the poor at the bottom? No, the nature of capital is to pursue profits, and the bounden duty of capitalists is to make money. Therefore, the effect of universal cash is only one, and capitalists want to make profits from it.
What is the foundation of socialism ? Democracy is for the general interests of the majority of people and allows the system to benefit all classes fairly. Therefore, under the socialist system, capital cannot do whatever it wants and has no absolute privileges. When a crisis strikes, the government should protect the majority of people, not a few capitalists, let alone allow them to take advantage of the situation.
I guess many people feel uncomfortable with the fact that the foundation of socialism is democracy. They always feel that the United States is a democratic system. Wrong, the foundation of the United States is freedom, so they are federalism . As for democracy, it is an important system for the bottom proletariat to overthrow the capitalists. In fact, you can tell by looking at the country names. East Germany, the typical Democratic Germany, the Soviet Union, North Korea, Vietnam and other countries all have democracy in their names. One of China's earliest reference country names was "The People's Democratic Republic of China". Later, the word "democracy" was removed because it felt redundant. However, our system is a democratic system, and the people represent democracy.
I won’t go into detail here. Anyone familiar with the history of democracy knows that the foundation of the United States and even the West is preventive democracy. Because they originated from Greece , and Athens, Greece, collapsed because of democracy. Therefore, the United States made a national policy when it was founded, and it was determined not to implement democracy. Rush, one of the founding fathers, even shouted: Only a mad dog would support democracy.
Then why did the United States later raise the banner of democracy? Because is cold war , because it wants to compete with the Soviet Union for the commanding heights of discourse power. So they painstakingly created the "election = democracy" routine, and then took advantage of the decline of the Soviet Union to brainwash the world, thereby establishing the illusion that they were a democratic country. In fact, elections are not democracy, but "representative system", which is the rule of the country by the elite.
I won’t go into too many twists and turns. In short, the United States is definitely not a democracy, and Western democracy is just a fake concept.
三
During the economic crisis , why did the West discover gold and China invest?
For example, it is a fact that the people at the bottom are poor. For them, it is an economic crisis. So how does China's " Targeted Poverty Alleviation" work? It is not that each household receives cash after receiving the funds, but it is to help them find a way out of poverty or find a job, which is to "teach a man to fish."
And if the money is directly distributed, the urgent needs of poor families will indeed be solved, but what happens next? Can it be sent forever? It's very difficult. After all, the money belongs to taxpayers. It can't support lazy people, and there isn't that much money. Therefore, giving money directly is like "teaching people to fish" and is not a long-term solution.
When China encounters a crisis, investment is based on the fundamentals. Investment in infrastructure will inevitably stimulate many links such as raw materials, transportation, sales, and construction, and then loans will be used to support enterprises, thus realizing a large cycle. This process is indeed slower and much slower than issuing money directly, but it saves the foundation.
This kind of operation has been practiced in China since ancient times and has long been a tradition. A typical example is Fan Zhongyan disaster relief, which is not a direct payment of money and goods, but "relief through work". During disaster years, Lao Fan asked temples and other large companies to build projects and recruit disaster victims to work, thus distributing relief in the form of wages. Then he will organize dragon boat and other competitions to not only boost confidence but also stimulate consumption. In a word, we cannot directly distribute money and goods, at least not all of them. If we do, we can only target the most vulnerable groups who have no ability to work.
四
Looking at the West, especially the United States, the founding time of the country is too short and there is not so much historical experience to draw from. As high-level leaders, whether they are the president or various princes, their terms of office are very short, so they cannot use long-term methods at all. The results are slow and not good for their political careers. Only those that are effective can help the votes.
And the capitalists are also willing to find gold, why? Because this is equivalent to a coupon. If you give it out for ten yuan, it can induce people to spend 20 yuan. After all, this money is free, and not many people will cherish it.
Actually, it’s not that difficult. Every shopping mall in China just gives out coupons for promotion. Everyone is afraid of being late and suffering losses, which inadvertently allows capitalists to make more money.
Moreover, the reason why capitalists promote cash deposits actually has a more far-reaching plan, which is to reduce other benefits. After all, if there is too much money, it will trigger inflation, and inflation will affect capitalists' ability to make money, or at least increase uncertainty.
Since the money was paid, the American lobbying companies, which are the spokesmen of capital, naturally went back to lobby and persuade the government to pass the policy of reducing or exempting other benefits. It's actually the same inside and out, and the people at the bottom will never really take advantage.
Moreover, if so much money rushes into the terminal market at the same time, it will definitely cause inflation, not necessarily for all commodities, but where the cash flows concentratedly, which commodities will rise. The price rise in Europe and the United States in the past two years has been serious enough, far exceeding that in China.
The reason why China is unwilling to adopt this method of discovering gold is to avoid the rapid emergence of inflation, and it is also impossible for capitalist groups to obtain benefits from it, let alone control the direction of policies.
五
Of course, using investment to stimulate the economy is not perfect. It can only be said to be a form of long-termism with relatively few side effects. Its disadvantage is that the effects appear relatively slowly, and it does not benefit all industries and everyone. There will definitely be people who will not benefit from the policy.
But what can I do? You can't have your cake and eat it too, choose the lesser of two evils.It is very difficult to manage a country's economy. Otherwise, there would not be so many poor countries in Africa. Wouldn't it be enough to just issue money?
What I know is that every country has its own different national conditions. As an ordinary citizen, just don’t cause trouble. The advantage of democracy is to concentrate efforts to do big things. Ideally, it benefits everyone, but in reality, it benefits most industries and groups. As for the real effect, let's wait and see.
is for reference only.