Many people think that the most simple thing for businesses to deal with inflation is to raise prices.

Since the price of raw materials for production has risen, the price of products can also rise.

This is called wool out of the sheep.

Not really.

Take wineries, for example.

The price of grain for the production of puree liquor has risen, but the liquor sold cannot rise casually, and the reason is that the market competition.

If the price of other people's alcohol has not yet increased, you will be the first to rise, and consumers will have the bad impression that the brand is driving up prices, and they will choose other brands of wine.

Even if the price of other drinks goes up later, people will still think that you are the brand that started it.

This is very detrimental to the image building of the enterprise.

Therefore, the price increase must be cautious and follow the general trend.

The same is true for food processing plants, and the same is true for restaurants.

Therefore, for the operators here, it is important to consider the problem that the price of raw materials and the increase in the sales price of products must lag behind.

"There is another problem, another consequence of inflation, is the rise in wages, in this area, not only can we not lag, but also have to rise in advance, please all units seriously consider the increase in wages and benefits. ”

Wu Xiaozheng threw out another difficult problem.

Yes, 93 was also a year of sharp rise in the per capita income of residents, and the most obvious manifestation was that the wages of many units have risen, and some units will directly double.

Last year, a monthly salary of more than 200 was already a good treatment, but by the end of this year, a monthly salary of 300 can only be regarded as average.

Of course, it still depends on the efficiency of the unit.

Units with good economic benefits will naturally increase wages and improve benefits.

However, it is not certain whether the original salary can be paid to the unit with poor efficiency.

This is how the gap between the rich and the poor in the country is slowly widening.

For Wu's enterprise, in order to retain and attract talents, so that everyone can maintain a high degree of enthusiasm for work, it is necessary to take the lead in improving the level of treatment.

If necessary, Wu Xiaozheng would rather make less money from the enterprise than treat everyone badly.

"Alright, that's it for the official meeting, let's get lunch. ”

The issue was raised and did not need to be resolved immediately at the meeting.

In fact, the problems faced by each family are not exactly the same, and it would only be a waste of time to discuss them at the meeting.

A more feasible way is for each unit to first come up with its own ideas, come up with a plan, and then submit it to Wu Xiaozheng for review.

But everyone didn't want to let him go.

The meeting was over, but no one walked away.

While waiting for the food to be served, everyone began to ask Wu Xiaozheng questions in a casual mode.

The first to make a move was Zhuang Ningwen, who was authorized by Wu Xiaozheng to attend the meeting.

Among the many people here, she has the highest academic qualifications, and she graduated from economics-related majors.

Now she is very interested in the topic of inflation that Wu Xiaozheng has warned about.

"Jacky, why are you so sure that China will be inflationary, can you explain it from an economic point of view?"

Wu Xiaozheng suddenly had a headache.

Can I tell you that this is a personal experience from a past life?

Alas, if you meet someone who is more serious, you have to go through a lot of words!

Fortunately, this is not a problem for Wu Xiaozheng.

He thought about it, all of them here are the core of Wu's enterprise, and it shouldn't be a bad thing to instill a little more knowledge of economics in them.

It is still good to read more books.

As for the cause of inflation, economic theory has been inconclusive.

From the perspective of short-term analysis, there are three main aspects: demand pull, cost push and structural reasons.

From the perspective of long-term analysis, academics generally believe that the cause of inflation is the increase in the amount of money.

In the face of the inflation that has begun to arrive this time, Wu Xiaozheng can explain it quite well based on the experience of his previous life.

He began to talk.

"The first reason has a lot to do with the overheating of China's economic development and the shortage of products. ”

With Deng Lao's southern tour and important speeches, China clearly defined the development line of the market economy, and the whole country soon set off a high-level economic construction.

However, China's foundation in front of it is too weak, so while various localities are swarming to set off an upsurge in economic development, products and raw materials are in short supply.

One of the characteristics of the market economy is the self-regulation and control of commodity prices.

Since raw materials and products are in short supply, the inevitable consequence is that prices will rise, and what is in short supply will increase the price of what will rise.

According to last year's situation, the first to stand up is coal, oil and other energy sources, followed by building materials, etc., which have risen slightly, but this is only the beginning.

This explanation was immediately recognized by Zhuang Ningwen and everyone.

"The second reason is that with the development of the economy, the people's purse has been enriched, and the consumption capacity and level have been greatly improved. ”

This is an important reason for the increase in the price of daily necessities.

Take the employees of Wu's Enterprises as an example.

However, when the employees and civil servants of state-owned enterprises still receive a salary of more than 100 or 200 yuan, in Wu's enterprise, the salary of more than 200 yuan is already a low standard, as long as they have a little ability and are willing to work, they generally have a salary of 300 or 400, and 500 or 600 is not uncommon.

There will be a large bonus at the end of this year.

And this kind of imagination is not unique to Wu's enterprises, most of the enterprises that make profits in the process of economic development will definitely improve everyone's welfare because of profits.

This means that more people have more people with rich purses, and a small number of people have become rich first.

For people with rich purses, the first thing to do is to consume to make themselves and their families more comfortable.

As a result, the demand for food, clothing, housing and transportation has increased.

Just like those villagers in Xiangshui Village, eating meat used to be a holiday benefit, but now it has become the norm in life.

As a result, the demand for meat has increased, and the supply of meat has exceeded the demand, which will lead to an increase in the price of pork and an increase in the number of pig farmers.

As soon as the number of pig farmers increased, the supply of grain began to exceed demand.

……

It's a ripple effect.

As a result, the price of pork and grain has risen, and the price of other production raw materials has increased.

Another very convincing reason.

"Another very important reason is the large issuance of money and the influx of foreign capital. ”

This is also a very important reason.

Everyone is rushing to start economic construction, which brings another problem, that is, the demand for circulation increases, and many enterprises have difficulty in payment.

In order to meet the needs of the market, the state had to increase the issuance of currency.

This means that the money circulating in the market is constantly improving.

Because of the needs of economic development, large-scale investment has begun to attract investment in various places, and a large amount of foreign capital has also poured into the country.

The influx of foreign capital has also led to a continued increase in the amount of money in circulation.

And these circulating currencies have further increased everyone's purchasing power, once again driving up the prices of raw materials and various commodities.

In this complex situation, inflation becomes inevitable.

Now Zhuang Ningwen and everyone were convinced.

There is a reasonable basis and objective reality to prove that it is difficult for everyone to question whether inflation will really occur.

Wu Xiaozheng's prediction was convinced, but the topic was not over.

For everyone, the important thing is how to get through this difficult time.

I still count on Wu Xiaozheng for this matter!

So everyone aimed at Wu Xiaozheng again.