Ye Tan: National Income Doubling Plan To Fight For Dignitaries

China's national income doubling plan is in the balance.

As long as national income is multiplied, domestic demand can be stimulated to maintain the stable structure of olive type.

The export oriented economy is facing bottlenecks while the internal economic efficiency is decreasing.

In 2009, the corresponding GDP of unit fixed assets investment has dropped from over 3 in the last century to 1.5 in the last century, and the ROA in the A share market has dropped from 10% to 2%.

If there is no deep reform, China's economic growth will go to a blind alley.

It is against this background that China has put forward a series of reform plans from the real estate to the national income distribution.

Apart from real estate, national income doubling plan is the only way for domestic demand economy.

We tend to compare China with Japan in the bubble trap in the 80s of last century. In fact, China is the combination of Japan and the beginning of industrialization.

Before and after World War I, Japan set up a market mechanism for big chaebol and a group of abject industrial workers.

Although Japan was among the top powers, it could not solve the internal contradictions.

After the defeat of World War II, the Japanese economy gradually recovered, and after a long period of growth, the Japanese economy once again entered the bottleneck.

In the early 60s of last century, the Japanese economy entered the stage of "bottom of the pot". The reason was that there existed many problems such as the dual structure of agriculture and industry, big enterprises and small enterprises, over reliance on investment, the ending of demographic dividend and the lack of personal consumption.

In the 50s of last century, there was a great discussion on the pformation of the economic system in Japan. This discussion became the theoretical basis of the national income multiplier program in Japan.

The so-called national income doubling plan, in fact, does not only refer to national income, but also includes several parts, such as improving labour productivity, promoting domestic demand, eliminating backward production capacity and increasing national welfare.

The national income doubling plan is actually the process of the Japanese government's iron fist to break up the chaebol. The fundamental goal of economic development is to double the GNP rapidly, thus seeking to achieve full employment through increasing employment and greatly improving the living standard of the people.

The main measures include: narrowing the gap between agriculture and non agriculture, between large enterprises and small and medium enterprises, between regions and between income and income, in order to achieve balanced development of national economy and national life.

Japan's national income doubling plan was successful. From 1960 to 1967, Japan doubled its national income and doubled its national income.

By 1973, national income had increased by 2 times.

Because of the national income doubling plan, Japan's economic structure finally stabilized and became a super economic power. More importantly, a strong and stable middle class consumer group was born in Japan.

By the 80s of last century, Japan was once again faced with economic bottlenecks. The breakthrough was to overestimate asset prices, making Japan the largest asset class one, while the Japanese were initially applauded as the horn of economic revival.

In the post industrial era, when the domestic demand was completely emptied, and the overvalued asset prices made the Japanese struggle for the unreal assets for a lifetime, the collapse of the bubble was the end of the feast.

Japan's asset bubble has exhausted the shadow of the real economy, and the Gilded Age has worsened the gap between the rich and the poor.

As Xie Guozhong said, Japan's per capita national income has dropped to nineteenth place in the world today, and it is a society with a huge gap between the rich and the poor. The relative poverty rate is second only to the United States, ranking the second in the world.

As a symbol of Japan's reform, the New Liberal Democratic Party has promised to achieve 2% economic growth in the second half of fiscal year 2010, with an average increase of 1 million yen (US $10 thousand and 600) in household income and raise the per capita national income to the highest level in the world within 10 years.

But raising per capita income is tortuous and long.

China's national income doubling plan is at the critical moment of China's economic restructuring and stimulating domestic demand. Labor conflicts and the shortage of labor force in the market do not lack the labor force, which shows that the past mode can not be sustained.

However, for China, because it is the combination of Japan in the early stage of industrialization and the bubble era, it faces the dilemma of two-way warfare. On the one hand, it needs to start war against dignitaries, and on the other hand, it must control bubbles.

For China, if the malformed income distribution system does not change, then the government will force the improvement of the minimum wage system into a digital game of redistribution of wealth under inflation. As the control and distribution ability of the capital market is very high, the final minimum wage system will be returned to the rich through the capital market and other channels.

Except for the past 10 years, the wage increase of migrant workers in the past two years has not really risen after inflation.

Perhaps for China's national income doubling plan, the real difficulty lies in restraining monopoly enterprises internally, reducing burdens on SMEs by means of Taxation, and establishing a comprehensive social security system. On the outside, they maintain Renminbi credit and strive for monetary sovereignty and asset pricing rights.

This is not easy. From the current resource tax and other tax reform, it basically belongs to the balance method of levy a supplement, and strive for monetary sovereignty outside, and reduce interest in issuing money internally. It is the restraint of the government on its own desire, and it needs a fierce competition from all sides to set it up.