Siheyuan started as an unlicensed knight and became a hero of justice

In order to better serve reform and opening up, laws and regulations must keep pace with the times and play their due role.

However, because the current laws can no longer keep up with the pace and situation of the times, the reform of laws and regulations is urgent, and many important laws have been revised.

As one of the people who proposed this suggestion, Wu Zhen also contributed a lot of suggestions and ideas, as well as insights into the advantages and disadvantages of the laws and regulations of various countries.

However, the reform of laws and regulations cannot be achieved overnight, but will continue to change with the development of the times.

Many laws and regulations are no longer suitable for modern forms and should be abolished, especially those laws governing special circumstances in special periods, because laws should be time-limited and continuing to enforce them after the statute of limitations will be counterproductive.

However, before the laws and regulations could be revised, new challenges emerged!

Because during the planned economy period, all national infrastructure investments were funded by free fiscal grants, the government had no money.

The departments and units below have become accustomed to asking for money, so they don’t think about making money on their own. They just wait for funding and rely on money from above.

However, since the reform and opening up, the business has grown bigger and bigger, and the national finances can no longer bear it. It can only switch to supplying through loans from the China Construction Bank and implement the reform of separating finance and finance.

In addition, the country has also proposed price reform. After all, although it has been reformed and opened up, it is still implementing the practices of the planned economy era, which is not in line with market laws.

Before the reform, the prices of China's industrial products were very unreasonable, and the profit levels of enterprises producing different products varied greatly.

In addition, price management is too centralized. Price management departments at all levels hold the power to decide the prices of most commodities, while the companies that produce commodities have no power to decide prices at all, so it is still a market economy.

The state decided to change price reform from administrative pricing to market pricing, that is, prices are determined by supply and demand.

However, price reform also brought huge challenges. After the prices of four non-staple foods were liberalized, the price of pork immediately rose by more than 4%, and the price of fresh vegetables also rose by more than %.

For example, when the prices of famous cigarettes and liquors were just liberalized, the retail price of Moutai liquor suddenly increased from more than 20 yuan to 290 yuan, and the price of Zhonghua cigarettes also increased from one or two yuan per pack to 12 yuan.

Domestic prices took off like they were on a plane!

According to Wu Zhen's investigation, in the mid-to-late 1500s, due to economic overheating and strong investment and consumption demand, the amount of time deposits of corporate units increased rapidly, with an average annual increase of more than billion yuan in currency.

By the end of the 80s, the money supply had reached billion yuan.

Most of this new money exists in the form of cash, and the amount that actually enters the production process is relatively small, which exacerbates inflationary pressure.

The full-scope fiscal deficit accounts for as much as 1/4 of fiscal revenue, and 1/5 of all fiscal expenditures have no corresponding actual revenue. Simply put, the money comes from unknown sources.

In order to control high inflation, the government had to start tightening regulation. Then, as deposit and loan interest rates increased one after another, companies faced the problem of capital shortage.

Wholesalers and retailers delayed payment to manufacturers, resulting in the occupation of production funds; and manufacturers followed suit, occupying the production funds of upstream component manufacturers; this eventually led to chain debts and became a common phenomenon across the country.

The leader asked Wu Zhen if he had any solution. What good solution could Wu Zhen have? He had no power or influence and only the right to investigate and make suggestions.

In desperation, Wu Zhen could only come up with a stopgap measure of increasing revenue and reducing expenditure.

Open source means:

Faced with difficulties, they can only rely on cheap labor to produce labor-intensive products for export and occupy the international market.

As a result, the entire national economy has been forced to shift from relying mainly on domestic demand to an export-oriented economy with an increasing degree of reliance on foreign trade exports.

Throttling is:

Reduce the maintenance costs of local government departments, public goods such as education and medical care, and rural public investment.

Of course, after doing this, the expenses of local governments and grassroots organizations will naturally be passed on to farmers, greatly increasing their burden.