Chapter 302 The Problem of Insufficient Domestic Demand "Please Give Me Monthly Votes"

In 1980, Jilin Jiangbei Machinery Factory started a motorcycle project with its military automobile engines. Since their military products were in good condition at that time, they could not let them hold two golden dolls at the same time, so their superiors asked them to transfer the motorcycle project to Jialing for production.

At the end of the year before last, in accordance with the unified deployment of the General Army, Jiangbei Machinery Factory switched to Alto production. The planning and thinking of General Bing is naturally very good. Four Alto companies, including Chongqing Changan, Jilin Jiangbei, Xiangtan South, and Xi'an Qinchuan, assemble one model in a unified manner. Changan supplies the covering parts and the parts are unified within the system. A large number can be formed quickly, which will generally solve the problem of military-to-civilian conversion in the military system.

However, the market does not follow people's plans. Inbreeding of parts and components makes it difficult to ensure good health and quality of life. Changan has three more competitors for no reason, so naturally it feels unhappy. And because the supply radius is too large, the cost of a single unit cannot be reduced. Jiangbei loses 10,000 yuan every time it builds a vehicle.

Xi'an Alto later changed its production to Flair. After a small success, it was transferred to the battery giant BYD and switched to the production of electric vehicles. North and South Alto are both dying. By 1999, when the Bingzong branch was divided into two major groups, the North and the South, Jiangbei's Alto had completely ceased production, with a cumulative output of only 5,000 vehicles in seven years.

Although Jiangbei Machinery Factory has been manufacturing cars for two years, not only has it not made any money, but it is heavily in debt and on the verge of bankruptcy. In order to pay wages, it even sold its excellent stamping equipment at low prices.

Later, Changan Tuo was still selling well, Jiangnan Alto was dying, Jiangbei Alto became an elf, Xi'an Qinchuan Alto was rebranded as BYD Flair, and in the end, Alto with the Suzuki logo was still alive and well.

From this example, Fan Wubing can see that the poor development of the domestic state-owned automobile industry is not simply a technical problem, but mainly due to the inflexibility of policies that restricts their development. For joint ventures, , and are restricted by the joint venture partners and cannot obtain relevant technologies. As for private automobile companies, although their policies are flexible and they are willing to develop the national automobile industry, it is a pity that their capital chain cannot guarantee long-term investment in technology research and development. This is a big problem.

In addition, private car companies are actually affected by the discriminatory psychology caused by traditional thinking. As the saying goes, if the name is not correct, the words will not go smoothly, they will be criticized everywhere, and their development will be unsatisfactory.

If the state had provided more support to the private automobile industry, the domestic automobile industry would have developed long ago.

Because now Fan Wubing has confidently stated his intention to build both high-end cars and entry-level cars. Anyway, everyone from the top to the province to the local government is optimistic about his success. After all, he has a rock. Where are the living examples of this?

However, some reporters have different opinions on Fan's decision to invest in the Group's automobile industry. It is believed that domestic demand in China is not enough to support so many automobile industries. Automobile industries have been established in various places. In fact, it is taking a path of waste and vicious competition.

to this doubt. Fan Wubing replied. "Our domestic demand is insufficient. The main reason is that we do not have a strong middle class to stimulate domestic demand. Where has our wealth gone? Look at the gap between Latin America and the United States. You will understand how our current situation of insufficient domestic demand came about. Latin America is poor. The reason is that it has not formed a good wealth regeneration system. Therefore, it lacks a sustainable development capability for wealth accumulation."

Everyone looked confused after hearing this. Fan Wubing continued. "Let me tell you two examples. Suppose a gold mine is discovered in a place. A man comes and invests in a mine. He hires a hundred workers to mine gold for him. He makes a profit of 10 million per year. The mine owner Fifty percent of the land is used as workers' wages. Each worker earns 50,000 yuan a year. They use 10,000 yuan to rent a house. The remaining 40,000 yuan can be used to get married, have children, start a family and start a business. The mine owner still has 50,000 yuan in hand. Millions. It can be invested. Because the workers have money and want to settle down. Therefore, there is a demand for houses. So the mine owners use the money in their hands to build houses and rent them to workers. Or sell them to workers. Workers need to eat and drink. So. . Open a restaurant. Earn back the money from the workers. To open a restaurant, you have to hire other workers. So the workers’ wives have employment opportunities and income. The consumption demand of a family will be greater. In this way, in a few years. After that, a hundred families appeared in this place. Children wanted to study. There was a demand for education. So someone came to set up schools. Workers wanted to date, consume, and make other things. So there were movie theaters and stores. Like this. Fifty years later, when the mines in this place are almost exhausted, it has become a prosperous city of about 100,000 people."

Everyone listened with great interest. Fan Wubingjian successfully attracted everyone's attention. Then he continued to preach. "Another situation. Suppose a gold mine is also discovered. Someone comes to invest in mining. It employs a hundred workers. It makes a profit of one thousand a year.

It is the mine owners who pay 10% of the money as wages. Thousands of dollars per worker. The money was barely enough to fill their stomachs. No money to rent a house. No money for a wife. They can only live in shacks. The mine owner made nine million a year. But look around and see the poor. There will be no demand for reinvesting anything locally.

then. He transferred money abroad. Because it is simply not safe locally. He built several luxury villas. Hire a few workers as bodyguards. The workers have no future. In addition to working hard to make ends meet. There is no other need at all. The only way to have fun is to find a way to trick a wife. Give birth to a beautiful daughter. Maybe you can even marry the mine owner as your wife. After fifty years have passed. This place has nothing but luxury villas. There is still no other industry. Wait until the mine is finished. The mine owner walked away with a huge amount of money. Workers either go into exile. Either the man is a thief. Women become prostitutes. "

Reporters are all people with relatively flexible minds. As soon as they heard the two situations mentioned by Fan Wubing, they immediately made some associations and connected them with the phenomenon of joint ventures in certain places in China. After gaining some insights, I couldn’t help but admire Fan Wubing’s forward thinking.

Although these two examples are very simple, the truth contained in them is very profound and has a very strong guiding significance for reality. They can be said to be concise and comprehensive, and they illustrate two different development paths in the development of various countries.

Fan Wubing saw that everyone was thinking deeply, so he continued, "These two very simple examples actually represent the different development trajectories of the United States and the United States. Perhaps Americans should thank Washington today because he created the most modern civilization for the United States. The most scientific political system, thanks to Henry Ford, who single-handedly created the American middle class. Latin American countries are not so lucky. Their great dictators created a predatory economic system and went crazy with a powerful attitude. It divides social wealth and makes the entire economy collapse and no longer able to develop."

Someone immediately raised objections to Wu Bing's statement, "Mr. Fan, please pay attention to your words. The most modern and scientific political system may not be what the United States has. Our political system has more advantages!"

Fan Wubing smiled and replied apologetically, "Well, I made a mistake. I just looked at the problem from the perspective of economic development. The living standards of Americans and the comprehensive strength of the country are obviously better than ours now. A bit stronger. But judging from our country’s development momentum, surpassing them is just around the corner.”

At this time, those people who said: nodded and let Fan Wubing go.

Fan Wubing shook his head, thinking that the difference was the times. Issues that he could talk about ten years later would still attract criticism from many people if he spoke about them now.

He paused, and then said, "Here we need to mention Henryt again. Among all business figures in ancient and modern times, Henryt's influence on social economy is unparalleled. It was he who used his Model T car to He single-handedly created the original middle class and introduced American society into modern society. Europe was decades behind the United States at this point. Henriette said that he wanted all his workers to be able to afford my T Model car, so he paid high wages to workers and created the assembly line production method, which greatly reduced the price of cars. As a result, Ford became the largest car company, so workers with money could buy cars and houses. , can be used for other consumption, and the middle class was born. So after completing the western expansion, the United States, which had no room for maneuver in its territory, discovered another gold mine. The rapidly growing middle class drove huge demand and supported the huge The domestic market continues to drive rapid economic growth, and this is the domestic demand of Americans."

"The United States has always been a country that relies on domestic demand for economic growth. However, China has more than one billion people, but it has to rely on foreign trade to drive economic growth. But we are not a small country like Japan. We can make money just by relying on an export-oriented economy. There will be a lot of money. Who can feed China with more than one billion people? No one can do it except ourselves." Fan Wubing said, "China is completing its own primitive accumulation of capital in a gradual way. This Not to mention power-for-money transactions, system loopholes, and getting something for nothing. No country’s primitive accumulation of capital is clean. But the key is, after the accumulation is completed, what should we do? Should we continue to allow the polarization between rich and poor to develop? Or should we continue to allow the polarization between rich and poor to develop? To create our own modern society so that most Chinese people can enjoy the fruits of reform and opening up?"

When Fan Wubing finished speaking, the entire press conference was completely silent, except for the sound of some stenographers scribbling on paper.

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