Chapter 426: Inflation
Lu Mingzhi naturally didn't doubt Liu Lang, so he continued: "Why don't you Huaxia University engage in Volkswagen parts?" You must know that these days many companies have successively developed parts for Volkswagen cars, as many as a dozen kinds, and they have already reached the standards given by Volkswagen, and our country did not reach 1 percent of the localization at the beginning of the year, but now it has exceeded 5 percent, and the highest estimate is that by the end of next year, the goal of 80 percent will be reached, and by that time, the cars that really belong to our country will be manufactured! How can such a major event be without Huaxia University?
A group of people from Huaxia University are "tinkering" in the laboratory all day long, so that many people don't understand, because in the eyes of the high-level, the School of Mechanical Engineering of Huaxia University is already the top mechanical research center in China, and they also have a Huaxia Industrial Technology Co., Ltd., it stands to reason that other companies can manufacture auto parts, and they must be able to, but more than two months have passed, and the people of Huaxia University have not even made one with the hair, which is very unreasonable!
"We at Huaxia University are not interested in those parts, we will not do what everyone can do, what we want to do is what others can't make, such as the engine will interest us, so Grandpa Lu, you don't care about this matter!"
Liu Lang didn't even raise his head.
"Hehe, good, good, whatever you say is what you say!"
Lu Mingzhi sandwiched a piece of beef and put it in Liu Lang's bowl.
"It seems that the country is developing well these days! Then I can rest assured!"
Liu Lang said "old-fashioned".
"Liu Lang, the momentum of national development is indeed very good, but there are also problems!"
Lu Mingzhi said again.
"What's the problem?"
Liu Lang asked.
"That is the problem of inflation, now that the country has opened up the market to introduce foreign investment, a large amount of capital and technology will come in, and our country will also expand production accordingly, such as steel production, Cement production has been a variety of commodities to increase substantially, from the beginning of the year to the present half a year, the amount of large-scale investment in the country exceeded the whole of last year, and the amount in the second half of the year will continue to increase, in this half a year the country's prices rose by seven percent, which means that the people's wages have shrunk by seven percent, the national statistics department has made a prediction, if not changed as soon as possible, according to the current scale of the country's investment, inflation is likely to reach 20 percent by the end of the year, if so, then the people will complain, Liu Lang, what do you think about inflation?”
"That's right!"
Liu Lang put down the chopsticks, then frowned and thought.
Lu Mingzhi is right, the country's currency is indeed very high now, but this is an inevitable process, China's reform and opening up is different from Western countries, the prosperity of Western countries is through industrial development step by step to lay a solid foundation before finally becoming a big country, this process took at least forty or fifty years, or even a hundred years, and China's development process is completely different.
Before the reform and opening up in seven or eight years, it was very difficult for the common people to even eat, and a family of three or four was better, but if a family of five or six people, and only the parents had jobs, then basically the family would be in a state of semi-starvation.
In the previous life, Liu Lang's parents were like this, grandpa and grandmother had five or six children in the family, and every day the eldest children wandered around with the younger children, they did not go to play, but to find something to eat, what wild vegetables and leaves, everything that could be eaten would be collected.
However, after the reform and opening up, the rural areas realized the contract of joint production, which greatly released the enthusiasm of the common people, the grain output increased by a large margin, the factories in the cities also began to implement the contract system, the products increased by a large margin, and the people's income also increased rapidly; by the end of the 80s, the country had undergone fundamental changes, and the people had basically solved the problem of eating, and in the 90s, it changed even more, and the people's income began to increase, and the problem of eating was no longer a problem, and it was the problem that the people were concerned about to make the quality of life better.
From the reform and opening up to the realization of basic food and clothing for the common people and the beginning of the development of a moderately prosperous society, this process only took more than ten years in China, for a large country with a population of one billion, this speed is not the second in the whole world.
The country's development speed has certainly attracted the attention of the world, but it has encountered many more problems than other countries, one of which is the problem of inflation, just imagine, ten years ago a country could not even eat, ten years later the country's roads are full of cars, and the income of the common people has increased from less than 100 yuan per month to more than 1,000 yuan, and the growth rate of this means of living will inevitably cause the country's inflation problem.
In a sense, inflation is also the inevitable product of the development of the times, and the key issue is not to avoid it, but how to adapt to it to the greatest extent, of course, this adaptation does not refer to letting the people accept inflation, but to let the people's income offset inflation.
In Liu Lang's previous life, the country had serious inflation in the late eighties, especially in the eighteen, and prices skyrocketed.
The average inflation rate for the first half of '88 was 13 per cent, compared to 19 per cent in real terms for June. However, if we take into account that this rate of growth is based on the increase in inflation in the second quarter of 1987, then the actual situation of inflation should be far more serious than that reflected in this abstract figure, and the figure of 19 per cent alone is the highest inflation rate since the founding of the People's Republic of China.
The price growth of major products, especially food, is far more than 19%, such as pork prices increased by 38% over eight or seven years, beef prices increased by 31%, egg prices increased by 60%, chicken prices increased by 81%, and the price of hairtail fish increased by 150%, which is non-staple food, vegetables and staple foods The growth is also very amazing, the lowest is 30%, and the highest even reaches 200%.
It is now eighty-six years, Liu Lang's previous life in eight or six years of prices are still stable, although they are also growing, at least not higher than the economic growth rate, but this life is a little different, just like Lu Mingzhi just said, if it continues to rise at this rate, it is likely to reach 20% by the end of the year, much higher than the current economic growth rate of 8%, that is to say, the current 86 years are already similar to the previous life 87 years, or even 88 years, if it is not contained, I am afraid there will be big problems.
"What is the state doing now?"
Liu Lang looked at Lu Mingzhi and asked.
"Now the state is also in a hurry, it has begun to print currency a few months ago, and a large amount of currency has begun to enter the market, mainly to raise the wages of the people!"
Since the beginning of this year, the wages of ordinary workers have indeed been raised, and there have been many increases, with the wages of ordinary workers increasing by 50 percent, most of them exceeding 50 yuan, and the salary of a first-class professor like Xiong Huaizhi is close to more than 200 yuan.
Of course, the wages of the employees of Shengtang Culture and Huaxia Industrial Technology have also increased significantly, the monthly salary of those people in Shengtang Culture has reached 600 yuan, which is higher than the salary of ministerial-level cadres, and the employees of Huaxia Industrial Science and Technology are a little worse, but there are also 500 yuan, which is the same as the salary of ministerial-level leaders, but Liu Lang himself suffers a loss, and the nearly one million yuan he deposited in the bank last year has shrunk by more than 20 percent, but Liu Lang doesn't care about this money and doesn't take it seriously.