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Home  /  Picture of the Day  /  Pic of the Day by Category  /  Economy 财经   /  魏杰:中国人不爱消费 主要是收入不高 - Wei Jie: Chinese don't like to consume, because salaries are too low
魏杰:中国人不爱消费 主要是收入不高 - Wei Jie: Chinese don't like to consume, because salaries are too low print version
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In the '5th Hubei province education forum for high-raked enterprise personnel', famous economist Wei Jie not only pointed out the future development direction of businesses, but also called on the improvement of resident income, which could bring along economic development.

Wei Jie said: "There's a limit to apartment purchase; the price isn't falling and there are few transactions - In this way the economy cannot grow. Similarly, in some districts the purchase of cars is also limited, leading to a drop in GDP. The economy of privately run enterprises is becoming 'the industry in the lower-middle reaches of the river': competition is fierce while profit is low, thus, many enterprises give up. Therefore, the economy must maintain a stable growth. If the GDP drops to a level of lower than 7%, it will be impossible to guarantee new job positions; if growth reaches 10% we might face inflation.

Wei Jie said that if we want to find a new economical growth model, the real-estate industry must be regulated quickly. Wei Jie believes that the future main investment domain is high-class housing. "Real-estate is naturally an investment realm which cannot be restricted and setting it free is beneficial to economical growth. In this way, housing price statistics could be divided in the future, as not all types of housing should be generally mixed in the same category."

"Why there is no growth in the consumerism of Chinese residents? Some say that reason is that Chinese don't like to consume and like to save money, but this is impossible, who doesn't like to consume?! The basic problem is that the common people are too poor. Wei Jie said that residents' income should at least follow the GDP growth. Wei Jie believes that in order to improve residents' income, some regulations in fiscal policies must first take place. At the moment inflation is too severe.

Original article published by Changjiang Times, 长江时报,

[1] 第五期湖北省企业高级管理人才教育讲坛dìwǔ qī húběishěng qǐyè gāojí guǎnlǐrén cái jiàoyù jiǎng tán - 'The 5th Hubei province education forum for high-raked enterprise personnel', an economy symposium that took place in Huazhong University of Science and Technology, Wuhan, Hubei province

[2] 经济学家 jīngjì xuéjiā - Economist

[3] 魏杰 wèi jié - Wei Jie, a famous Qinghua university economy professor

[4] 居民收入 jūmín shōurù - Resident income

[5] 限购 xiàn gòu - Limited purchase, insufficient consumption

[6] 民营经济 mín yíng jīngjì - Privately-run enterprises

[7] 中下游 zhōng xiàyóu - Middle and lower reaches of a river, here a metaphor for a crowded location with not much profit

[8] 利润 lìrùn - Profit

[9] 就业岗位 jiùyè gǎngwèi - Job posts

[10] 通胀 tòng zhàng - Inflation

[11] 房地产业 fángdìchǎn yè - Real-estate industry

[12] 高档性 gāodàng xìng - High-class

[13] 房价统计 fángjià tǒngjì - Housing prices statistics

[14] 消费 xiāofèi - Consumerism

[15] 节俭 jiéjiǎn - Thrifty, save money

[16] 财政政策 cáizhèng zhèngcè - Fiscal policies (mainly policies in government expenditure and taxation).

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