发信人: qili (qili), 信区: Economics
标 题: Re: How to battle deflation
发信站: The unknown SPACE (Sun Sep 12 21:13:52 1999), 转信
the problem, as I understand it, is due to lack of consumer
confidence: people are so concerned about their ability to generate
future income, they save all they can now in anticipation of that
future risk. Well, if noone buys anything, factories go under,
people get laid off, which in turn reaffirms and amplifies the
perceptionof future uncertainty -> becomes a vicious cycle.
by just printing money (and artificially stimulate
(governmental) expenditure) in a country where corruption
is everywhere, one devalues savings of orginary people,
and enriches those who are "tied" to the government and
governmental officials who oversee the expenditure. thus
an unfair redistribution of wealth.
there is a tremendous amount of purchase power inthe hands
of the chinese people collectively today. and they want to
buy a lot of things (house and cars to name a few).
another way, not necessarily better way, is for the government
to ensure income stability in the future. Something like
government-subsidized pension (or pension increase for
those already have one), or pension insurance. in essence,
you build a safety net (like social security in the us, but
not nearly as libral). 2ndly, we need to figure out a
permanent way to legally protect property rights so people know
the house they buy today will remain theirs
for generations to come. 3rdly, allow the price to drop
to kill off those companies that cannot survive competition.
I never had a better time to be a consumer in China than I
did now. and let hopeit remains that way.
【 在 duo (duo) 的大作中提到: 】
: I think many agree that China has a deflation problem, all prices are
: dropping. But why can't the government keep printing money until we
: see the deflation stops? I know it isn't that simple but someone can
: enlighten me?
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