The Appropriate Growth Rate Will Help The Economy Achieve Qualitative Change.

In the past, China's economic growth rate was obviously faster.

In the 1961-2011 years, the world's highest GDP growth rate was 6.8% (in 1963), the lowest growth rate was -2.2% (appeared in 2008), the average growth rate was 3.6%; 1961-2011 years, China's actual GDP growth rate was 19.4% (appeared in 1969), the lowest growth rate was -27.1% (appeared in 1960), the average growth rate of 8.3%.

After the reform and opening up, the actual GDP has been growing at a faster rate than the world's GDP.

In recent years, whether the rapid growth is reasonable or not is controversial.

The labor force, capital equipment, natural resources, entrepreneur resources and technological level of a country are limited, and there is "natural limit".

If the elements of production and production are at these limiting levels, the output is called "natural level GDP", also known as "potential output".

Obviously, if the economic expansion is above the limiting level of the factor, the actual GDP will be higher than the potential output.

But this situation will not last long, because the demand for elements is greater than supply, and the price of elements will rise. This will inhibit production. If the economy runs at the limit level of the factors, the real GDP will be lower than the potential output. When the supply of the elements is greater than demand, the price of the elements will fall, which will stimulate production.

There has not been a generally accepted conclusion that China's economy has been running on potential output in recent years.

The author's tendentiousness is that China's economic growth rate can be appropriately adjusted.

First of all, appropriately lowering investment growth will help the balanced growth of the economy.

According to the demand law of national income accounting, between 1980 and 2011, the proportion of residents' consumption accounts for about 45% of GDP in China.

The proportion of GDP accounts for about 39%.

Since 1980, the proportion of China's investment in GDP has been on the rise.

Government spending accounts for about 14% of GDP.

The proportion of net exports to GDP fluctuated between -4% and 9% (the average value from 1980 to 2011 was 2%).

In the 1976-2011 years, global capital formation accounted for the highest proportion of global GDP (25.4% in 1979), with a minimum value of 19.1% (2009), with an average of 22.4%, while China's average value was as high as 39%.

Obviously, the proportion of investment in China is too high, and consumption is too low.

Moderate callbacks help to achieve a good state of macroeconomic operation: commodity market equilibrium, money market equilibrium and international market equilibrium at the same time, that is, complete equilibrium.

Second, adjusting the investment structure contributes to the healthy growth of the economy.

Modern macroeconomics theory shows that investment should focus on three aspects: making up for the existing labor force.

The depreciation of the level makes the per capital equipment level of the new labor force equal to the average capital equipment level of the existing labor force, and makes all the capital and equipment level of the labor force have technological progress, so that the economy will converge to the stable level.

The current investment in China is too concentrated in real estate, finance and other fields, and needs to be vigorously adjusted.

This adjustment will temporarily affect economic growth, but in the long run, it will help our economy to achieve healthy growth.

Third, giving priority to the allocation of resources in the field of education and scientific research and appropriately adjusting the pace of economic growth will help to achieve a qualitative leap in the future economic development.

Economies with insufficient technological innovation are prone to the ups and downs of development.

In 1962-2011 years,

Experienced 8.97% of the long-term growth rate, but the economy has been fluctuating.

The economy moves from one crest to a trough, and from one trough to another.

Among them, negative growth appeared in 1962, 1967, 1968 and 1976 (-6.1%, -5.7%, -4.1%, -1.6%) respectively.

This fluctuation is related to the political environment, but it is also related to the lack of technological innovation.

Once the economy is in recession, people's income will decrease and unemployment will increase.

The consensus of some economists for China's economic formation is that we must strengthen knowledge creation and technological innovation.

Higher education has trained a large number of researchers for the country. The world bank defines researchers as "participation in the shaping and creation of new knowledge, new products, new processes, new methods or new systems, as well as professionals in related project management.