Sharing the experience of learning teacher Wen Tiejun’s theory

/ MingXin | 明心阁

Original link: http://mingxin.life/index.php/archives/288/

origin

From 2018 to 2021, I was working as a software developer in a software supplier in the financial industry, and I began to contact and learn the business logic of the financial industry. At the end of 2020, I began to study stocks, learn various knowledge, and pay attention to macroeconomic policies. By coincidence, at the beginning of 2021 I saw the video of Mr. Wen Tiejun interpreting the 2021 Central Document No. 1, but it was not very touched at that time. Later, I watched a series of videos of Mr. Wen’s rural construction practice and other videos on station B, and I was really convinced. When I had nothing to do, I watched all the courses and lectures of Mr. Wen that could be found on the Internet. Guoren series books I almost bought it and read it. Because I came from the countryside, I have personal experience of many situations in the countryside that Mr. Wen talked about, so I very much agree with Mr. Wen’s concept of rural construction, which is the main reason why I came to do rural construction.

My understanding of cost passing theory

One of Mr. Wen’s core theories is the theory of cost shifting. In my opinion, this theory explains many phenomena in society very well.
Some examples:

  1. The sudden rise of the IT industry and a series of wealth creation myths are due to the fact that the military command system that the U.S. military invested huge sums of money in research and development during the US-Soviet hegemony was converted to civilian use after the disintegration of the Soviet Union, which is equivalent to the cost of early hardware research and development.
  2. After the reform and opening up, private business owners and foreign companies made a lot of money in China. Because before the reform, state-owned enterprises borne the full cost of labor reproduction (education, childbirth, housing, pension), most of which were reflected in the form of welfare rather than wages. In comparison, private and foreign companies have great advantages in wages, but they do not bear the cost of education and pensions for the labor force. The cost of education has been paid by the state, and the cost of pension is basically dumped to the society after employees are fired. In addition to this, there are quite high environmental costs that have not been paid and are ultimately dumped on society as a whole.
  3. How do the so-called developed countries, especially the United States, after de-industrialization, although they do not produce, they still enjoy various commodities produced by the resources of various countries? It mainly relies on a series of institutional arrangements centered on finance and objective strong advantages in the fields of science, technology, military and ideology, which capture most of the benefits of globalization and pass the costs on to developing countries.

I have read Taleb’s “Asymmetric Risk” before, which helped me a lot in understanding Mr. Wen’s theory of cost shifting. Asymmetric risk refers to the asymmetry between the benefits obtained by individuals and the risks they take, and it is a way of transferring costs. Here are two examples:

  1. Fund companies help clients operate funds and charge management fees, but do not bear the risk of capital losses.
  2. The main reason for the subprime mortgage crisis is that banks can package loans and sell them to asset management companies, earning only interest margins and not taking the risk of loan defaults at all. The more you lend, the more you earn, and in the end, you keep lending to those who can’t pay it back. Then the asset management company packaged these junk bonds into high-quality bonds and sold them to investors, and finally collapsed.

My understanding of the theory of cost shifting is not only from the economics level, cost is not only “cost” in the economic sense, and shifting is not just conscious and active shifting. Under normal circumstances, the more vulnerable subjects bear the costs that are passed on, that is, the price.

But there are also special cases. Cost or cost, in my opinion, is closer to the “karma” of Buddhism. Each of us not only creates karma, but also receives karma, both good karma and bad karma, both our own karma and others’ karma. .

This article is reprinted from: http://mingxin.life/index.php/archives/288/
This site is for inclusion only, and the copyright belongs to the original author.