Recently, the Ministry of Industry and Information Technology of the State Council has eliminated backward production capacity in 18 industrial sectors such as steelmaking and ironmaking. A total of 2,087 enterprises were eliminated, and they were forced to close within two months. The elimination of backward production capacity involves a wide range of companies, as many companies, the workload is large, unprecedented in history.
In the past decade, many industries in our country have experienced overcapacity. This problem is no longer a new problem. It has repeatedly appeared and presented a chronic and persistent problem. There are three main reasons for this:
First, the consequences of government allocation of resources. As the government allocates resources, it dilutes the basic role of market allocation of resources, causing overcapacity in many industries.
Second, monopoly industries have created excess capacity. Due to the blind expansion of many monopolies, it has led to a round of overcapacity, which is the institutional cause of overcapacity.
Third, excessive investment has exacerbated excess capacity. In response to the financial crisis, China began to increase fiscal investment and bank loans for construction and projects in 2008, and used investment to stimulate economic growth. Due to excessive investment, overcapacity in some industries has been exacerbated.
Practice has proved that the main body to eliminate backward production capacity is the market rather than the government. If a company has excess capacity and product backlogs, companies lose money because they have no sales profits, and the eventual closure is a matter of course. The enterprise is the micro foundation of the market and it is an economic organization that is responsible for its own profit and loss. The survival and death of enterprises is determined by the market. If the government's administrative measures are used to shut down the company, the consequences are too heavy, the cost is too high, and the effect is not good. Finally, the dislocation of the government and the market is not conducive to the transformation and adjustment of the government-led economy to the market-oriented economy.
The government has had a negative effect of eliminating backward production capacity. First, the effect of elimination is poor and it is easy to go through the court. Second, the government has stepped out of backward production capacity, so it is easy to carry out burdens and increase government burden. The market eliminated obsolete production capacity companies and claimed losses. Third, it will affect the economic development and stability of some localities. 18 industries were included in the phase-out list. More than 2,000 factories were eliminated and demolished, affecting at least the local GDP of 100 billion yuan in GDP and billions of fiscal revenues. Produce a large number of laid-off workers, reduce the employment rate, increase the unemployment rate, to some extent, endanger the stability of some localities and industries. Fourth, to solve the backward production capacity, on the one hand subjectively forced to eliminate, on the other hand, to stimulate consumption and increase social purchasing power. By developing the economy to ease the relationship and contradiction between social supply and demand, and stimulating consumption to absorb excess production capacity, we can actively adjust the supply and demand relationship in the market, use consumption to stimulate production, and promote healthy and stable economic development.
In the past decade, many industries in our country have experienced overcapacity. This problem is no longer a new problem. It has repeatedly appeared and presented a chronic and persistent problem. There are three main reasons for this:
First, the consequences of government allocation of resources. As the government allocates resources, it dilutes the basic role of market allocation of resources, causing overcapacity in many industries.
Second, monopoly industries have created excess capacity. Due to the blind expansion of many monopolies, it has led to a round of overcapacity, which is the institutional cause of overcapacity.
Third, excessive investment has exacerbated excess capacity. In response to the financial crisis, China began to increase fiscal investment and bank loans for construction and projects in 2008, and used investment to stimulate economic growth. Due to excessive investment, overcapacity in some industries has been exacerbated.
Practice has proved that the main body to eliminate backward production capacity is the market rather than the government. If a company has excess capacity and product backlogs, companies lose money because they have no sales profits, and the eventual closure is a matter of course. The enterprise is the micro foundation of the market and it is an economic organization that is responsible for its own profit and loss. The survival and death of enterprises is determined by the market. If the government's administrative measures are used to shut down the company, the consequences are too heavy, the cost is too high, and the effect is not good. Finally, the dislocation of the government and the market is not conducive to the transformation and adjustment of the government-led economy to the market-oriented economy.
The government has had a negative effect of eliminating backward production capacity. First, the effect of elimination is poor and it is easy to go through the court. Second, the government has stepped out of backward production capacity, so it is easy to carry out burdens and increase government burden. The market eliminated obsolete production capacity companies and claimed losses. Third, it will affect the economic development and stability of some localities. 18 industries were included in the phase-out list. More than 2,000 factories were eliminated and demolished, affecting at least the local GDP of 100 billion yuan in GDP and billions of fiscal revenues. Produce a large number of laid-off workers, reduce the employment rate, increase the unemployment rate, to some extent, endanger the stability of some localities and industries. Fourth, to solve the backward production capacity, on the one hand subjectively forced to eliminate, on the other hand, to stimulate consumption and increase social purchasing power. By developing the economy to ease the relationship and contradiction between social supply and demand, and stimulating consumption to absorb excess production capacity, we can actively adjust the supply and demand relationship in the market, use consumption to stimulate production, and promote healthy and stable economic development.
Raw Materials Of Dietary Supplements
Raw Materials Of Dietary Supplements,Dietary Supplement,Raw Material Dietary Supplements,Raw Material Supplement
Jinan Meiluwei Biotechnology Co.,Ltd. , https://www.mlwpharma.com