Chapter 809 - Liberalization of land policy

The country's primary goal now is to develop the economy, all localities are engaged in large-scale construction, which requires a large number of raw materials, the demand for steel and cement is increasing at a rate of tens of percent every year, especially the steel output, the rate of increase in recent years has reached 50 percent, three years ago the Shanghai Iron and Steel Plant introduced an annual output of 5 million tons of steel projects into the island country, and this project alone has used up more than 10 billion US dollars of foreign exchange reserves, becoming the largest investment in the history of New China.

These raw materials need electricity, but the country's power resources are also insufficient!

Therefore, the state has thought of saving the people's electricity as much as possible, and using more electricity for industry.

This trick is simple and rude, but also very useful, is a last resort in a special era, but this life is a little different from the previous life in time, the previous life of the country began to implement daylight saving time in 86 years, and this life is in 85 years, a year in advance, this change should be caused by Liu Lang, because this life of the country in the strength of reform and opening up is stronger than the same period in the previous life.

Liu Lang sat in the car, looking at the night view of the capital, the capital has undergone great changes in half a year, there are a lot more buildings next to the street, even though it is now half past eight in the evening, but many construction sites are still under construction, nearly kilowatts of light bulbs illuminate the construction site is brightly lit.

"In less than half a year, the capital has really changed!"

Liu Lang looked outside and sighed.

"Liu Lang, what is this? You don't know yet, now the state has begun to study the liberalization of land leases, if nothing else, it will be passed at the meeting at the end of this year, and then private sales of land will be allowed, once this policy is implemented, it will not be long before the capital will be completely changed!"

Wang Zhendong said with a smile.

"Well, that's good!"

Liu Lang nodded, if this policy is implemented this year, it will be two years earlier than in the previous life, it is obvious that this is because of the butterfly effect caused by Liu Lang.

"It's a good thing for the state to open up land, so that private participation in land development can be better and faster, and it can also bring income to the country, and then promote the development of the real estate industry, but .........! Forget it, let's not talk about this!"

In the previous life, the real estate industry was a pain in the hearts of many young people, and high-priced houses extinguished the dreams in the hearts of many young people, especially in big cities, and you may not be able to earn a house in your life.

Of course, there are internal reasons why the housing prices in the previous life are so high, the main reason is that the country's industry is unbalanced, mainly based on foreign trade, in the mid-nineties after more than ten years, the world's small commodity manufacturing 890% are from China, "Made in China" has become the most well-known name in the world, but too much reliance on foreign trade is also a major drawback of China, when the world economic crisis occurs, China's economy will be affected.

The fastest growth of the domestic real estate industry is in two periods, the first is in 98, when the Asian financial crisis broke out, South Asian countries were the first to be impacted, the currency depreciated sharply, and inflation was serious.

In particular, Indonesia, a fucked country, almost went bankrupt under the attack of financial predator Soros, and then Malaysia and the Philippines suffered one after another, and the big wave of financial crisis was formed.

Hong Kong Island was also hit hard that year, but with the support of the state, it survived and did not suffer as badly as Indonesia.

But the impact of the financial crisis still hit the country, trade orders fell sharply, and the country's economy faced the danger of a hard landing.

In order to stimulate economic development, Bai Weiren, who had just taken office at that time, began the policy of stimulating domestic demand, and how to stimulate domestic demand in the shortest possible time?

The scope of the real estate industry is very wide, steel, cement, processing, transportation and other industries are the downstream industries of real estate, and the vigorous development of these industries has naturally led to other industries, and the development of these industries has offset the impact of the international financial crisis.

This policy had an immediate effect, the domestic economy achieved a soft landing, and the lives of ordinary people were not greatly affected, but there are two sides to everything, and the development of the real estate industry also made housing prices begin to rise.

From '98 to '08, housing prices have reached a very high position after nearly a decade of rising time, and the country has also seen the hidden dangers and is determined to rectify them, which can be created and made people, and in '08 the United States had the most serious subprime mortgage crisis in history, and a number of banks that had existed for nearly 100 years went bankrupt one after another, and a worldwide financial crisis was formed again, and the huge impact made the country's export trade shrink significantly.

As a last resort, the state once again used the same method as ten years ago, and housing prices across the country have risen again.

It can be seen that the problem of housing prices is not what ordinary people think, a big reason is that it is a last resort, if this is not done, the country's economy may be hit more seriously, the fundamental reason is that the country's industrial development is very unbalanced, too dependent on foreign trade, once the world economy is in crisis, China will be impacted.

Of course, the scope of the worldwide financial crisis is not only small commodities, those commodities will also be impacted, but the impact will not be too great, such as automobiles and food, the people of the world can not buy, but food and automobiles These things can not be bought, such as South Korea and island countries, they have been less affected by these two financial crises, especially island countries are the most representative.

In the seventies and eighties, the economic development of the island countries reached its extreme, and in the eighties of the twentieth century, Japan's economy was terrifyingly strong, and Japan frantically bought the assets of European and American enterprises.

Sony spent $3 billion to buy Hollywood's Columbia, the "soul of America," Panasonic spent nearly $5 billion to buy Universal Pictures, and Mitsubishi Heavy Industries spent $800 million to buy 51 percent of the shares of New York's Rockefeller Center, which is known as the "symbol of America."

By the early 90s, the country's GDP had exceeded $3 trillion, and what was the GDP of the United States that year? 5.9 trillion yuan, that is to say, the island countries reached half of the United States, and if they developed at that pace, they might not reach the order of magnitude of the United States in 10 years.

As early as the early 80s, they continued to stimulate the stock market and real estate of the island countries through various means, and also signed the "Plaza Accord" with the island countries, which was a hegemonic clause, mainly because the US fiscal deficit increased sharply and the foreign trade deficit increased sharply. The U.S. wanted to increase the export competitiveness of its products through the depreciation of the U.S. dollar in order to improve the imbalance in the U.S. balance of payments, so the agreement was signed, but at that time, the economic development of the island countries was also a little overheated, and the appreciation of the yen could help Japan expand overseas markets and establish joint ventures.

After the signing of the Plaza Accord, the yen appreciated sharply, the domestic bubble expanded sharply, and finally due to the bursting of the real estate bubble, the island country's economy was stagnant for a long time, which was more than 20 years, until nearly 30 years later, 17 years, the island country's GDP was less than 5 trillion US dollars, compared with 90 years of growth has not doubled, and the United States at that time was nearly 20 trillion, nearly 30 years of growth more than three times.

That's the effect of overheating in real estate.