Fan Gang: populism will lead to national bankruptcy
Tuesday, May 4th, 2010 Fan Gang: populism will lead to national bankruptcy
At 5:23 p.m. on the April 10, 2010 Fenghuang Wang Finance
National Economic Research Institute China Reform Foundation, Fan Gang
Fenghuang Wang Financial News Boao Forum for Asia 2010 Annual Meeting April 9-11, held in Hainan Province, Fenghuang Wang financial full coverage. National Economic Research Institute China Reform Foundation, the forum said Fan Gang, a populist cause national bankruptcy. The following statement Fan Gang Record:
Bai Yansong: Mr. Fan Gang, the government in stimulating consumption what role to play here? How to stimulate, or themselves have none other, with policies to stimulate their own, creating such an environment, so that we can spend so he is not a weakness?
Fan Gang: First, I said that the definition of consumption, consumption of the concept, I am afraid there are many ambiguities, including a significant fuzzy place, we now housing investment is included in the investment which is not included in the consumption inside This is the first.
Second, the government invested a lot of infrastructure do you think he is, then, that many things are long-term durable public goods, such as metro, subway, strictly speaking not a health product, are you every day, and he is an investment, will use the next one hundred years, then the consumer is not spending the people, now people are traveling by public transport, urban infrastructure is also a consumer, rather than investment goods.
China’s investment is not investment surplus? If the investment in it, the problem is not particularly large. Professor Chen Zhiwu said consumption, investment, I turn that investment spending, the government did not all bad things, so much infrastructure built is a good thing, we have so much saving is the problem, but since there are so many savings , eating, drinking, wasted, as the economists want to build something more, lay the foundation for future development in China. After all, we are relatively backward country.
I agree with Professor Chen Zhiwu said, the United States 1850 to 1920, has come to the last great era of luxury before the crisis, the Western path of development is true, the first Puritan culture was interpreted as a capitalism to the development of Marxism, is that some people exist a pot of gold, some thrift, some savings can develop. When people’s capacity beyond the spending power, the social thought began to restructure the financial system in particular, to meet the new trends, you can so that we borrow money to their own future, China gradually have to this time, since the savings rate is relatively high, on the one hand to use to infrastructure above.
Talked about this later, in turn, say the government should do. I do too many things against the Government, the Government has to do too many things in the future may be a problem. Said is now a low income, say that government subsidies, subsidies that this can not be sustained, leading to a populist national bankruptcy, premature artificially raise some prices may cause some people never get another new job .
This history of Latin America and other developing countries have learned that lesson. Today someone said to me in the car, gave an example in Peru, developing countries have learned the most advanced countries the social security system, and do not want your wives, common-law girlfriend enterprises should also pay social security. This is the most developed social security system, soon to learn if, in the future overwhelmed.
I do too many things against the Government, the Government has done the most important thing is to reform, to twist things Niuguo Lai, if the resource price is too low, resulting in wasted resources, find ways to Niuguo Lai. Enterprises should pay and if you do not pay taxes, are not transformed into income, through tax reform, this part of the revenue, which get converted to income. The construction of social security, health care system should be built, the development of financial and credit system to be built, this is the need to build things, not the government spend money.
This is not the government likes to spend money, but media experts said that the Government should spend money. In fact, there is a source of money, these money away, later to continue to spend down, create new distortions in the future, the future will create a new balance, regardless of the level of all imbalances.
In a sense, the government should play the role play to, but not to do too many things instead, he will make China’s development process, including the growth of future consumption interrupted, some countries of Jiao Xun is what are interrupted Le, how to have sustainable growth, sustainable development point of view, still we need to think about.
Related topics:
2010, Boao Forum for Asia
Recommended Reading
Conference and Scientific Development of Chinese Enterprises in China to promote innovation management project
Management Forum 2010 high-end training program co-application form [download]
Equivalent level for the United States harbor Ph.D., master’s degree program
Eastern Management “Chinese culture and a harmonious enterprise culture” Advanced Training Class on
China (urban) cooperative program of strategic human Fortune Forum
I Ching Chinese culture and business intelligence strategy of scientific development will be the national senior training
Dry spring called: Chinese companies are currently the biggest crisis in human crisis
Taoism talks with entrepreneurs wealth wisdom
Chinese culture and business management transformation and innovation expert public speaking tour live …
Chinese culture and management experts say the national tour and other public solicitation agent
Dry spring: What is Chinese culture?
Chinese Studies and Business Administration (dry spring) high-end training programs
Book of Changes and Management (dry spring) Lecture Series
Ching Innovation and Enterprise Management Training Project Cooperation
National 653 Project and harmony of Chinese culture corporate culture training
Chinese culture and a harmonious enterprise culture Senior Seminar Course Outline
Dry spring: the pain of China’s enterprise management is the human pain
Dry Spring: How to improve employee loyalty SMEs
Students to succeed in business and career planning public speaking tour
Chinese culture and management scholars dry spring
Ching Innovation and Enterprise Management Training Project Cooperation
“The Art of War” and the decision-making leadership training program of senior professional managers