Imbalance and Regulation of China's National Economy

On China's Fundamental Economic Problems as Structural Imbalances

The national economy is a system of relatively independent and interconnected institutions or individuals, and

any system has a structure. The so-called structure can be understood as the distribution of the system's building blocks (constituent parts

) in some kind of relationship, e.g., the structure of the human body usually refers to the distribution of human body parts in spatial

relationships, the structure of a piece of music is the distribution of musical notes in temporal relationships, and the structure of a computer usually

refers to the distribution of modules in functional relationships. ....... In short, structure

is a meaningless concept apart from the relationships between the building blocks. In contrast, economic structure can often be understood as the distribution of the constituent

parts of the national economy in the relationship of the state of development. Obviously, there are

different levels of structure at different levels of the system, for example, there is a consumption structure, a supply structure, a distribution structure, and there are also such things as the proportional structure of different

industries, the compositional structure of the technological level of enterprises within the same industry, and so on. This article focuses on the structure of the Chinese economy at the macro level.

Human economic phenomena and their movements are essentially supply, demand and exchange. Supply

is the process of providing products and services and creating use value, which is the basis of human economic activity.

Demand is the acquisition and consumption of use value, which is the fundamental purpose and destination of economic activity. And exchange

is the process by which different suppliers exchange the use values they produce with those produced by others

is the link that connects supply with demand. All three are indispensable and *** together constitute a continuous

economic movement.

Whether the movement of the national economy is normal or not is directly viewed as whether supply and demand are balanced or not, that is, whether the structure of supply

giving structure coincides with the structure of consumption, let's take an example, imagine a simple society with a supply

structure of 10 tons of rice, 1 ton of oil, 1,000 meters of cloth, and 1 ton of jin of iron, and a structure of consumption of 9 tons of rice, 1

.2 tons of oil, 1,200 meters of cloth, and 0.8 tons of iron, then we say that the structure of supply and demand is out of balance, i.e., there is a structural

imbalance. Of course, the so-called structural imbalance is not only limited to the direct form of expression, but also include different

the same labor force ratio structure, the proportion of enterprises with different levels of technology structure, different technical content of

products of the same kind of products and services of the proportion of the structure, and so on, it is the structural imbalance of these structural aspects of the cause of

the structural imbalance of supply and demand. For example, China has a disproportionately large agricultural population and therefore generally low incomes

, which limits their ability to consume industrial goods and modern services (e.g., good health care and advanced communications)

, thus causing structural imbalances.

To illustrate that structural imbalance is the fundamental economic problem in China, I would like to list some specific forms of structural

imbalance:

1. Distributional structural imbalance. It is also known as polarization. The direct consequence of the imbalance in the distribution structure

is this: China is in general a country with a low level of production of luxury goods, and the demand for general

goods is limited, and the most fundamental place is with the domination of a large amount of wealth in the high-income earner's income

income from the process of the production of general goods (whether it is from the surplus value, or from the bribe or

misappropriation of tax revenues. p>

The embezzlement of taxes and the like), so that this is reflected in distortions in the structure of supply and consumption. Let's say a shoe

factory owner's wealth comes from the labor of the shoe factory workers, a garment factory owner's high income comes from the creation of the garment factory

workers, a restaurant owner's income comes from the creation of the cooks and waitresses, a builder's wealth

is created by the construction workers, and so on, and how many pairs of shoes, garments, houses, and food

things can the above mentioned owners consume? ? But their wealth corresponds to a large number of shoes, clothes, etc., so there is a situation where supply

is greater than demand.

2, industrial structure imbalance. The Chinese government in recent years has been to adjust the industrial structure as the economic life

The top priority to grasp, this direction is obviously correct. But the imbalance in industrial structure can't be solved purely

by adjusting the industrial structure in isolation. For example, China has a lot of people and little land, no matter how to adjust the

industrial structure, most of the land must still be used to grow food, otherwise the problem of food security is not guaranteed

. Under these circumstances, it is impossible for farmers to increase their incomes in a general way, and the problem of absolute surplus of agricultural labor simply cannot be solved, and I think there is no doubt about it. Therefore, the fundamental way out of China's

industrial restructuring lies in the reduction of the agricultural labor force, through the rapid development of secondary and tertiary industries

development, and take the road of urbanization in order to obtain a solution. Let's take the issue of industrial upgrading of a large number of enterprises

with low technological level and efficiency, which involves the employment of a huge number of people - and employment determines the level of demand and whether supply and demand can be kept in balance. Therefore, such upgrading should not be pushed forward blindly

but should rely on market forces to gradually resolve the issue and constitute a buffer. What is worth mentioning

is: what kind of supply structure is reasonable? This depends on what kind of demand structure exists,

And the demand structure is not the government can stipulate, is a reflection of the consumer's will, so how to adjust

Industrial structure in fact, the government can not do the Lord, otherwise it is likely to fall into the situation of brute force.

The imbalance in industrial structure is the phenomenon that the factors of production included in different industries (such as labor

power, technological level, etc.) are unable to form a balanced exchange structure, and the fundamental manifestation of this is the existence of a large gap in the output value created by employees in the different

same industries (note the difference with the imbalance in the distribution structure), so that the

high-efficiency industries are unable to find a new source of income. High-efficiency industries are unable to seek sufficient

consumption from workers in low-efficiency industries. For example, the large-screen, high-performance color TVs produced by China's color TV companies could not seek widespread demand in rural China

, thus limiting their growth. Therefore, the root

reason for the imbalance in industrial structure is the serious imbalance in the rate of efficiency improvement or the level of efficiency of different industries, and to solve this

type of imbalance, it is necessary to analyze the specific problems and adopt different strategies to solve them. For example, China

country's agricultural production efficiency is very low, the root cause is not China's agricultural varieties can not be

nor is China's industrial development is not enough to provide agricultural mechanization equipment, but lies in a large number of agricultural labor force

cannot get out of agricultural production, the rate of urbanization is too low enough to absorb a large number of agricultural population. Another example is the large number of small and medium-sized enterprises (SMEs) that have low technological levels, are inefficient, and pollute and waste. If these enterprises can not get

technological upgrading but by technologically advanced enterprises to bankruptcy, then, can only cause a large number of unemployed, in turn

over to affect the market size of the advanced enterprises, therefore, the state should take measures to be technologically upgraded

technical and financial support, and should not be left to the market competition will be wiped out. The technological upgrading of small and medium-sized enterprises (SMEs) will inevitably lead to the development of related industries (e.g., machinery manufacturing, metallurgy, etc.),

which will create a broader market for SMEs after the technological upgrading.

Productivity development is fundamentally a general increase in per capita labor productivity, but from the surface

Present form of scientific and technological progress. But how can scientific and technological progress prevent the machine from

excluding human labor? The fundamental way out lies in the emergence of new forms of supply to the original industrial system of

manpower absorption, as well as the expansion and efficiency of the original industrial system, such as the emergence and development of new forms of services

(eg. beauty care), the emergence of new industrial sectors and the development of the emergence of new industrial sectors (eg. domestic

cars). The constant emergence of new products and services and their development, resulting in the constant transfer

of large numbers of laborers, is the fundamental reason why the old industries have become more efficient without causing massive unemployment. Of course, the expansion of existing industry sectors can also provide a large number of jobs (e.g., the development of the construction industry), which in turn provides a market for

new industries. The industrial sectors interact with each other, and have the relationship of "one gains, the other loses"

. Therefore, the adjustment of industrial structure should focus on the development of each industry, rather than cutting the size of

some industries. For example, China's food surplus is actually relative, is not commensurate with the reality of the low standard of living of most of China's

residents, if the food into animal protein,

actually far from being able to meet the needs of the fundamental problem lies in the structural imbalance in other areas (such as

such as the distribution of structural imbalance, the structure of the labor force, etc.), so the way out is not to reduce food production

the way out is not to reduce the production of

animal protein

the way out.

The way out is not to reduce food production

but to develop other industries and transfer agricultural labor.

No matter what measures are taken, a large amount of financial support is needed, so it is necessary to adopt expansionary

monetary and fiscal policies, otherwise the adjustment of industrial structure will lack of momentum.

3. Imbalance in labor structure. This is in fact the most serious structural imbalance in China's economic life

, there is not only a serious surplus of agricultural labor and a lack of scientific and technological talent, but also a huge gap in the productivity of labor in various

industries, that is to say, not only is there a serious imbalance in the distribution of labor in the number of different

industries, but also different levels and levels of labor

. There is also an imbalance in the number of different levels and levels of labor force

to meet the needs of each industry (e.g., there is said to be a severe shortage of high-level skilled laborers in Shanghai, while graduate students and the like are in good supply). Although the structural imbalance in China's labor force is directly

like any structural imbalance, reflecting a very low match between the structure of the supply of labor and the structure of the demand for labor,

what is different from the way in which structural imbalances in the structure of supply and demand are regulated is that the main direction of regulation is no longer supply-side, but rather, it lies on the demand-side. For example, the general commodity supply structure

structure and consumption structure imbalance, certainly through the supply side according to the market feedback to adjust their own supply

level and structure to solve, but in the labor market, although the workers themselves to adjust their own

skills can be used to fill the gap in the structure of the demand for labor, but the demand

side is in the labor market, the demand

side is the main direction of the demand side.

The demand for labor is dominant, and there is no question of eliminating the supply of labor or changing the quantity of the supply of labor

in this respect, the supply of labor has a rather special nature. In a country like China, where there is an absolute and massive surplus of labor, the fundamental way out is obviously not a change in the quality of workers, but a massive increase in the demand for labor. In order to achieve a large increase in the demand for labor,

the fundamental way out lies in the development of industries, especially new industries (new products and services supply

) and the expansion of the existing secondary and tertiary industries. That is to say, the fundamental way out is through the development of production

generated by the expansion of the demand structure and changes, rather than the local adjustment itself.

4, the imbalance of the configuration structure of productive forces in different regions ......

So why is the fundamental problem of the Chinese economy is structural imbalance? We know that the normal development of the national economy of a

country or region, directly speaking, is the structure of supply and demand

construction of the coincidence or not - its macro-expression of the so-called balance of supply and demand, the macro balance of supply and demand

is a micro supply and demand balance of the The overall manifestation of this is the balance between supply and demand at the micro level. And what is the biggest problem facing the Chinese economy in the form of

presentation? Lack of demand and excess supply. Although the causes of this market weakness are many

diverse, but from its various specific manifestations and causes, are this level of

supply structure and demand structure of the imbalance, is a lot of industry development is far from adequate as a result of the general. In fact

actually, any economic problem can be attributed to structural imbalances, only that the

dimensions or content of their main imbalances are different, and the means of solving them are different. Therefore, the proposition that structural imbalance is the fundamental problem of economic life

is universal.

Since there is a lack of demand and excess supply, why is the reason "many industries are

far from adequate"? This is the difference between dialectical thinking and mechanical thinking. What kind of country is China

? A developing country with the 116th highest per capita output in the world. So China's supply situation, no matter

how much of a surplus it is, is still a relative surplus, and what does relative surplus mean? It means that the material and cultural needs of the people are actually being met less than they would like to be, as in the case of

sufficient meat supply, which is based on the reality that the rural population's intake of animal protein is quite low, and the textile industry, which is based on the premise that a lot of people consume clothing sparingly.

And the relative surplus of products and services can not find the reality of purchasing power, the reason lies in other industries

Industry development is quite lagging behind, lies in the labor structure of the serious imbalance on the solution to the problem, the root

Root of the way out is not to eliminate the surplus, of course, but to accelerate the development of lagging industries, for which the creation of broad

Consumption space. But to accelerate the development of lagging industries, we must take the massive transfer of agricultural labor (

that is, urbanization) as a breakthrough, we must implement the virtual monetary policy, with the legal effect of the currency to

transform the potential and surplus productive forces into real productive forces, so as to provide the excess supply of greatly

expanded space for demand.