Experts Interpret The Definition And Role Of Supply Side Reform

Big coffee explains "supply side reform" for you.

Recently, with the gradual dilution of the "three carriages",

"It is warming up quickly.

What is the amount of information behind the hot words mentioned by high level and financial Caijing? Why does "supply side reform" put forward at this time? What is the new connotation of "supply side" compared with "demand side"? What new dividends will be released by the "supply side reform"? Will it be a new tactic for the development of China's economy? The small editor will take experts and you to read it.

The so-called supply side reform is to start with supply and production end, and actively supply intervention to promote economic development by lifting supply constraints.

On the one hand, this reform should focus on developing new directions and areas of innovation and create new economic growth points. On the other hand, it also calls for reform of some existing systems or policies that inhibit supply, such as tightening up.

And complicated examination and approval system.

Relative to the demand side reform measures, the supply side reform focuses more on enhancing the efficiency of economic growth, more focused on enhancing the vitality of long-term development of enterprises, and paying more attention to long-term, sustained and balanced economic development.

The core of the supply side reform is to reduce the institutional paction costs of enterprises, including paction costs, taxes and fees, financing costs, and social security costs.

This will help to enhance enterprise innovation ability, improve supply quality and efficiency, improve supply structure, and ultimately improve total factor productivity.

The demand side is important, but it is more short-term and belongs to Keynes doctrine.

Short term problems still need to be rooted in the long term and from the supply side.

"Dislocation of supply and demand" has become the biggest obstacle to China's sustained economic growth.

"Insufficient supply" and "insufficient demand" are the biggest problems at present: the first is insufficient supply.

The supply of infrastructure in services, high-end manufacturing, Midwest and rural areas is still seriously insufficient.

The two is lack of demand.

The overcapacity of traditional industries is still serious. PPI has been growing negatively for 43 consecutive months, and coal, steel and cement enterprises are suffering.

We need to balance the relationship between demand side expansion and supply side reform. We need to expand the shortage of one hand and improve the supply at the same time.

Supply and demand is a balanced relationship between two sides. The reform of supply side is also creating demand at the end, which is solving the problem of demand.

For example, the reduction of production capacity and merger and reorganization are actually adjusting the supply structure, reducing the supply that is not needed, and creating market demand.

The same is true for the reform of the administrative monopoly industries.

The growth, pformation and upgrading, and the development of the service industry create new demands through the reform of the supply side.

In general, solving the supply problem also creates new demands, and this new demand is more reliable, more realistic and more sustainable.

To promote institutional innovation from the supply side is the key to effectively resolve the risks of the "middle income trap", "Tacitus trap" and "welfare trap", and to achieve the "key move" and "the biggest dividend" for China's urgent need to change the way and sustain healthy development.

Facing the pressure of economic downward pressure, we need to use new sources of power to hedge down factors.

Only by stimulating the innovation factor through the new system supply can we successfully cope with the economic downturn and see the great potential for development, toughness and leeway of China's economy.

The role of the supply side reform is manifested in: first, we should intensify our efforts in reducing production capacity and make substantial progress.

Second, we should further relax access and speed up the reform of administrative monopoly industries.

It is not only to "let go small", but also to "enlarge" in a more practical sense.

Third, we should speed up the flow of land, capital and personnel among urban and rural areas so as to achieve rational allocation.

Fourth, accelerate the development of an environment conducive to innovation.

Fifth, we should further accelerate the pformation and upgrading of industries.

Most of our manufacturing stalls have been rolled out, but on the whole, the degree of refinement is relatively low.

China has great potential in this respect.

High cost is the most fatal injury on the supply side.

There are at least six problems in China's supply system and structure, for example, the overall supply system is export-oriented, mainly for low-income groups, and the cost of production and operation of enterprises is too fast. High cost is the most fatal injury on the supply side.

There are four "annihilation wars" to push forward the reform of the economic structure, that is, to resolve excess capacity, reduce the cost of real economy, resolve real estate inventory, promote the sustainable development of real estate, and prevent and defuse financial risks.

The supply side reform is to enable the legitimate subjects to have the right to supply, do not control, restrict people's ability and desire to supply.

The two is to pform the unqualified suppliers into qualified suppliers.

To carry out the supply side reform, we must accelerate the new round of fiscal, taxation and other supporting reforms.

The continued downturn in the economy has determined that the next cycle will be mainly expansionary economic policies and expansionary ones.

Either reduce or increase.

Therefore, whether from the perspective of development or from the perspective of reform, there is plenty of room for tax reduction in this round of adjustment.

The structural reform of supply side should be linked up and down, not only with top-level design but also with grass-roots vision.

First of all, the top-level design is mainly to manage the macro direction and draw the bottom line.

In addition, in the supply side structural reform, which measures are more effective, or let the local and grass-roots enterprises have more space to test, we can find effective measures through experiments.

This is also the most important experience of China's reform over the past 30 years.

This experience is still applicable now.