Do you feel that this year is poorer than before? The significance of inflation has been deeply rooted in the hearts of the people over the years. People are thinking about turning their money into a house into an investment, otherwise they will lose money in the bank. Only if they spend money fast enough will they be unable to catch up with you.
However, in 2018, people's willingness to invest and finance has weakened. Is it really just fear of thunder and lightning? The stock market has collapsed only because people do not have the will and confidence to invest?
The root cause is the tight money in people's hands. Now, the core issue is before us - we have entered an era of deflation.
Maybe you will wonder how the price around you is rising and the currency is issued so many times. What do you think is also the rhythm of inflation and how can it be tightened?
Let's first compare the characteristics of inflation with our perception. In addition to rising prices, inflation is accompanied by the following performance:
Prices and wages are rising.
Residents have a strong desire to consume.
Enterprise capital increase and production expansion, stock market rise and easy financing.
What is everyone's feeling? Will wages rise or remain unchanged for a long time? Is it harder or easier for business friends to raise money than before? Has the stock market gone up? Are you spending too much money now or are you being more " stingy"? In contrast, it seems that nothing is the feeling of being drunk with money during inflation.
Then why are prices rising around? It is said that rising prices are the most direct response to inflation. How can this be explained? To analyze this phenomenon, we should start with the flow of money in our country.
As we all know, due to other reasons such as taxation, money was quickly concentrated in the hands of the government and then reinvested through bank loans. Moreover, the additional money will not be sold through market operations like those in the US and Europe, but will also be " released" through bank loans, so the money resources will only be concentrated on a few people and a few industries.
With less people and more money, it is easy to bring up prices. However, hot money in recent years has mostly been in a few industries such as real estate, which has not allowed the real economy to soak up all the rain and dew, the real economy has not developed and the income of the people at the bottom has not increased.
However, the more difficult situation is that after years of infatuation with inflation, we have to face the dilemma of the intersection of deflation and inflation, which is even more painful - while we are unable to consume while the economy is empty, unable to support the domestic overcapacity and causing deflation, hot money is concentrated in less developed industries such as real estate and causing inflation.
In short, it is easy to go from luxury to luxury and difficult to go from luxury to simplicity.
Moreover, deflation is more harmful than inflation, money is not enough, and everything is difficult - corporate profits are falling, financing is difficult, debt is difficult to repay, the market is shrinking, and unemployment is increasing … I dare not think about it anymore.
Can that continue printing large amounts of money and releasing large amounts of water as in previous years?
Printing money to drain water is a helpless method, which has certain effects but needs to be built on the fact that money can really be put into the real economy, so that enterprises, especially small and medium-sized enterprises, can develop and raise people's wage income level to stimulate consumption demand. For example, our country's current population structure and labor force ratio really need to be adjusted, so that more fresh blood ( leek ) liquid ( vegetable ) can be involved in production and consumption in order to fundamentally boost domestic demand. However, people are not willing to have children now. Apart from their sense of autonomy, they are worried about the economic pressure of raising children and whether their future income will continue to grow steadily.
However, in order to boost the economy in a short period of time under the current situation of insufficient domestic demand, greater output capacity is needed, such as the belt and road initiative. If it can be established and opened up, the next development of our country can still reach a higher level, but the difficulties are also considerable.
What about our ordinary people? Consumption has been downgraded.
It is very helpless. The way we ordinary people can cope with deflation is probably only to tighten our belts. Therefore, the demotion of consumption has become a hot word in 2018. As long as consumption falls, wages will not rise, which will definitely not embarrass the boss and worry the country.
Then how can we be Self - lowering
1. Distinguish between necessities and impulsive consumption
I used to buy whatever I wanted, but now I have to think twice before I buy it. Is it useful? Must I buy it? Is there anything at home that has the same function as it, but is not cost effective? In particular, the red-mouthed numbers that give straight men headaches are all red, but only in different shades, but the wife will buy as many as dozens of them. Can such consumption be restrained in times of deflation ( this column does not discuss the category of lipstick economy ).
In addition to the party, try to cook by yourself
Don't be lazy. It's cheaper to buy food and cook than to eat it outside. Besides, take-out is not only expensive, but also too convenient for people to stop ordering food taken late at night. Both people need more than 150 food for a barbecue ( don't ask me how to know, and don't want to tell you that it's from rich life experience ).
3. Develop the habit of bookkeeping
When you write down every sum of money you spend, you will find that it is really scary to spend money and it is convenient for you to reflect on which parts of it can be reduced.
4. Sound financial management
In times of inflation, the more money you owe, the more cost-effective it will be. In times of deflation, money is tight and expensive, and every debt can't breathe. Therefore, we need to reduce debt and invest in safer financial products, such as money funds, which have good returns in times of deflation.
