Chapter 252 Prices and Value Preservation

In the early morning, feeling the warmth on his face and lips again and again, Jing Jian smiled and hugged Cao Haiyan beside him in his arms: "What's the matter? Why did the hair harassment turn into a morning kiss?"

Cao Haiyan chuckled and kissed Jing Jian a few more times: "I called home yesterday and found out that you sent money." Actually, no, when I go home during the winter vacation, I have already given a lot to my parents. ”

"Silly girl, just take it for you!" Jing Jian kissed back, "This money is for your parents, tell them to take it all out and buy a house, the bigger the better." If it's not enough, I can give it again. ”

After giving Qin Zi's parents $20,000, they converted all of them into RMB according to Jing Jian's intentions and bought four suites. At that time, there was no supply of export housing in mainland cities, and the real estate market was almost non-existent, but there were still real estate transactions, which were nothing more than the transfer of some public housing through the housing management office. However, as long as it was in the 90s, various places introduced public housing to private policy, only a small amount of money was needed to become private ownership. Therefore, such public housing is no different from commercial housing. Of course, the money to buy a house now is no longer the price of cabbage, but the price of green onion and ginger.

Since it was given to Qin Zi's parents, it was not good to favor one over the other, just a few days ago, Jing Jian sent $5,000 to her parents in the name of Cao Haiyan, and also wanted them to buy a house.

However, after listening to Jing Jian's words, Cao Haiyan was taken aback: "Ah? I'll let them keep it." What do you do when you buy a house? My family is all cadres, and the state has a house. My sister is also married, and my brother is still young, even if he grows up and has a family, the good units have a separate room, why spend that unjust money?"

In this regard, Cao Haiyan is not as "good" as Qin Zi. Don't look at Qin Zi's obedience in front of Jing Jian, but in her own family, she has always been very strong, and her parents also listen to the opinions of their eldest daughter. Therefore, as soon as a few words were spoken, her family immediately complied with it. Cao Haiyan is different, she has her own opinions, and her parents are the real heads of the family, so she needs to take more words to convince.

However, the concept of this era is indeed the case, birth, old age, sickness and death are all covered by the country, especially cadre families like Cao Haiyan. The question of the house, of course, is allocated by the state. Who would spend their own money to buy a house? Stupid or not?

Faced with Cao Haiyan's question, Jing Jian couldn't find a suitable reason for a while. You can't always pretend to be a god stick and say, "In the future, real estate will be commoditized and marketized, and housing prices will rise to the sky?"

After thinking about it, Jing Jian explained: "Food, clothing, housing and transportation, every household needs everything. If you buy a big house with convenient transportation and good environment, you will not suffer if you live comfortably and have a lot of face. And your parents are patriarchal, so you basically want to live with your son and grandson in the future, right? ”

"Uh-huh. Cao Haiyan can accept such a reason.

Jing Jian stroked Cao Haiyan's hair and continued: "Also, now that domestic prices are rising every day, the house can always maintain its value. And in my opinion, there will be inflation in the next few years, so don't deposit in the bank, it's not very cost-effective. ”

"Huh?" Cao Haiyan was taken aback again, "What should I do......? Isn't it true that inflation is only happening in capitalist countries?"

"......" Jing Jian was speechless for a while, this question that is not a problem at all in the future is really difficult to answer now, "Listen to me anyway! Don't deposit in the bank, buy hedging goods, or find a way to exchange foreign exchange." You can calculate how much your parents' wages have risen in the past two years, and how much have the prices of goods outside risen? My Haiyan is from the mathematics department, so the numbers don't deceive, right?"

"Okay! I'll talk to my parents. Cao Haiyan reluctantly agreed, but her expression was still a little disbelieving, "You can scare me! No matter how much it rises, the price of rice will not rise to 2 jiao." (The price of rice at that time was around 1 jiao)

"Ahem, ahem. Thinking of the price of rice just a few years later, Jing Jian has nothing to say.

......

This period is a special period of China's reform and opening up. That is to say, from a planned economy to a market economy, price reform has been placed in an important position.

The specific process and content of the price break can be Baidu, and the number of words is not cheated here. It is only necessary to understand that due to a series of reasons such as unreasonable price comparison and the dual-track system, China's commodity price structure at that time was quite distorted. Therefore, starting in 1984, the state began to gradually start price reform.

And in this chaotic period, "criticizing the strips" and "reversing the master" were popular, and the later rich people, with a considerable number of people's primitive accumulation, were all in this special period. But when it comes to ordinary people, they need to endure the pain of inflation.

Even in the end, in 1988, the price barrier failed completely. Market hoarding and rush buying, from straw paper to batteries, from clothing to shoes and hats, from color TVs to refrigerators, is already what to grab, that is, not to leave RMB. There was a panic run on the banks, and in three months, household savings fell by nearly one-tenth. As for inflation, the price index rose by 34.8 per cent in 1988, on the basis of a 13.7 per cent increase in 1987.

However, although the price barrier failed, the price reform did not stop. It's just that it has gone from short-term and intense to long-term and slow. It was not until 1992 that the price reform was basically completed when prices were fully liberalized. And subsequently, there are still a series of sequelae problems such as state-owned enterprise reform, triangular debt, and large-scale layoffs.

Some friends may ask, why is this very drastic economic policy being pursued?

This brings us to another term – shock therapy!

In later generations, due to the drastic changes in the Soviet Union and Eastern Europe, it seems that shock therapy has become notorious and has been demonized. But at the time, quite interestingly, shock therapy was so famous that it had been hailed as a panacea by the economics profession and governments. Why? Because shock therapy has just saved a country's economy.

In the 80s, Bolivia, as a small and economically backward country in South America, due to the long-term political turmoil and the continuous mistakes of the government's economic policies, caused a large number of economic problems to accumulate and not be solved, and finally led to a serious economic crisis.

In 1985, the Bolivian government had a budget deficit of 485.9 trillion pesos, about one-third of GDP, and inflation was 24,000 percent. In 1984, the external debt was $5 billion, and the interest payable was nearly $1 billion, exceeding export earnings. Between 1980 and 1985, the standard of living of the population fell by 30 per cent, and the national economy was on the verge of collapse.

At this desperate moment, the American economist Jeffrey Sachs was hired as an economic adviser to the Bolivian government. He boldly put forward a whole set of economic programs and policies, because of its relatively strong impact, in a short period of time it may cause huge shocks in the economic life of society, and even lead to a state of "shock." Therefore, people borrow medical terms and call this set of economic programs and policies put forward by Sachs to stabilize the economy and control inflation "shock therapy."