Yao Yang, Ren Zeping and other six scholars jointly spoke out! Seven suggestions for liberalizing economic activities

The strict epidemic prevention and control over the past three years has had a self-evident impact on economic and social activities, and every ordinary person among us has felt the direct chill. In the past few years, there have been not one or two entrepreneurs and economists who have spoken out in the economics industry. Most of the speeches will disappear quickly on social media. However, this time these few economists and entrepreneurs came out to speak out and called for the liberalization of economic activities. They should have seen the recent changes in the prevention and control of the epidemic. However, local governments still have local policies in various places, which seems very chaotic. Economic activity still cannot flow freely. This may also indicate that the current situation has reached the point where it has to change.

You are just trying to be different and give some examples that seem relevant but are completely irrelevant. The situation of economic management in the UK before and after the liberalization of the epidemic is almost the same. Of course, whether the liberalization of the epidemic has little impact on the economy. The example of Foxconn is under the background of public opinion to strictly guard against the virus. If the whole country is liberalized and the virus is not very toxic (it is already doing so), which employee will not go to work for fear of catching a cold?

Still listen to the central government, the experts are just what one family says

Against the backdrop of greater pressure on economic operation, general difficulties for enterprises, and new challenges for residents’ employment, as an economist, it is commendable and absolutely necessary to offer opinions and suggestions. The premise is that it must be down-to-earth, conform to the reality of economic development, truly understand the needs of enterprises and residents, and be able to play a positive reference role in macro decision-making, instead of being an afterthought, slapping the head, or even playing the piano randomly.

It cannot be said that the suggestions of several economists are all wrong, or that there is nothing to learn from, such as doing a good job in medical security for vulnerable groups, launching a new round of activities to expand domestic demand with new infrastructure as the core, and increasing support for the manufacturing industry. The transformation and upgrading and the support for the real economy are all reasonable and correct. However, analyzing one by one, it is not difficult to find that these so-called suggestions are either an afterthought, a slap in the face, or a lot of empty talk, and none of them can really be adopted by the decision-making level.

Let’s look at the first suggestion first: in the near future, we will give priority to the liberalization of economic activities, and liberalize economic activities in public transportation, office buildings, restaurants, hotels, logistics, shopping malls and other places. This seems to be true, so how to let go? How can we let the general public accept it while letting go, so that the general public does not feel worried or even fearful? As a suggestion, there must be some specific measures, instead of throwing out the question and letting others answer it. Such a suggestion is worse than none. If you want the decision-makers to adopt it, you have to put forward specific opinions and measures. Even if they are wrong, you can’t just ask the problem without mentioning the measures to solve the problem. What’s more, the 20 optimization measures have been adjusted and optimized a lot, and new prevention and control methods and measures are also being explored in various places. Who needs such suggestions with only problems but no measures?

Let’s look at the second suggestion: invite scientists in the medical field to study the feasibility of optimizing the plan, for example, reduce the scope of lockdown, and no longer conduct unified large-scale nucleic acid testing in the whole district or city. This so-called suggestion does not need to be read, it is just an afterthought. Because the Ninth Set of Plans, the Twenty Optimization Measures, and the National Health and Medical Commission already have clear requirements, and they are much more detailed than the so-called suggestions. Why do you want such an afterthought suggestion?

The third suggestion: It is recommended to set the GDP growth target for 2023 at more than 5%, and send a clear signal to all walks of life to put development as the top priority and liberalize economic activities, so as to stabilize expectations and boost the confidence of all parties. The truth is right, what about the measures? Is it possible to achieve the goal and achieve the goal by just saying “increase the deficit rate in 2023 and launch a new round of domestic demand expansion activities centered on new infrastructure”? Can the economic growth target be set at 5%? It can’t be so sloppy, so simple, and so unscientific to slap your head. To achieve the 5% economic growth target, what conditions are needed, and in which areas should efforts be made, there must be sufficient conditions and measures, otherwise, it will be fooling the masses and misleading decision-making. As an economist, giving advice doesn’t come with that.

The fourth suggestion: take effective measures to support the development of the private economy and boost the confidence of private enterprises to help restore the vitality of the market economy and the momentum of economic growth. Obviously, this is a correct nonsense. Because such a requirement has not stopped in recent years. From the decision-making level to the management, this requirement has been repeatedly emphasized, and policy measures have also been formulated and introduced towards this requirement. Why do private enterprises have insufficient investment confidence, why are their benefits declining, and what are the reasons? Is it still at the level of macro policy and awareness? Obviously misleading public opinion and the masses. It is distressing to put forward a suggestion that seems to be correct but is actually boring or even misleading without an in-depth analysis of the cause of the problem.

The fifth suggestion: increase support for the transformation and upgrading of the manufacturing industry and the real economy. I don’t want to say too much about this one. Economists who make suggestions are requested to study the report of the 20th National Congress of the Communist Party of China carefully and deeply understand the spirit of the 20th National Congress of the Communist Party of China. Because, “Insist on putting the focus of economic development on the real economy” can tell economists that your suggestions are too superficial.

The sixth suggestion: optimize real estate regulation policies and promote a soft landing of the real estate market. This suggestion itself is correct, because meetings and documents have said so, and decision-makers and management have also done so. So, as an economist, what is one to do? Of course, after in-depth investigation, research, and analysis, they put forward good opinions and suggestions. However, several economists have a high level of academic culture, and they are also very good at copying and copying policies, and they have nothing of their own. I just want to ask a few economists: Why don’t ordinary people buy houses? If you can’t answer it, don’t take it as a suggestion.

The seventh suggestion: Make good use of financial tools such as interest rate cuts, RRR cuts, and refinancing to support enterprises in accelerating the recovery of economic activities. Even if you don’t think about it, you can tell with your eyes. In the past two years, have there been few policies introduced? Isn’t there enough money pouring into the market? Why are the real economy and small, medium and micro enterprises still facing greater financial pressure? What are the reasons? Don’t you feel ashamed to offer useless suggestions without analyzing the essence of the problem? The funds invested in real enterprises are misappropriated by banks for other purposes. The market demand is insufficient, the receivables of enterprises are occupied, the funds are turned into reinforced concrete, and the turnover efficiency is greatly reduced. This is the crux of the problem. Only by researching on deep-seated problems can we find a solution to the problem, instead of just copying the words from the document as suggestions.