Limitations of traditional economy in developing economies of scale

After more than 30 years of reform and opening up, the economy has developed rapidly and the people's living standards have undergone earth-shaking changes. In 20 15, our per capita GDP has broken 1W and entered the ranks of moderately developed countries. It can be said that this train has been moving at a high speed for more than 30 years, but now we have reached a crossroads, and the previous development model has been blocked, as shown in the following.

1 and more than 30 years of economic development are often at the expense of the environment. As you can see, the sky is not blue, the water is not clear, all kinds of pollution, and the food is not clean. Many diseases that happen to the elderly are getting younger and younger, and the environment is a big reason. So now the central government has closed a large number of heavily polluting enterprises, which directly leads to a decline in economic growth.

2. The export-oriented economy has been challenged. A large part of the previous economic development was contributed by exports, or processing trade. A large number of imported materials processing enterprises were born in Dongguan, Guangdong Province, which developed rapidly with the help of cheap labor. However, with the rising labor costs, foreign-funded enterprises have moved their factories to Southeast Asia (Cambodia, etc. The labor force there is cheaper, and this development model is becoming more and more difficult to maintain. Last year, many foreign trade enterprises closed down. Transformation is imperative, and the state is also supporting some high value-added industries, such as robot industry, smart cars, home-only and so on. At this stage, it is still in its infancy.

3. The mode of stimulating GDP by investment has also been challenged. In the financial crisis of 2008, China launched a 4 trillion stimulus plan, which was basically invested, such as infrastructure investment, factory investment and real estate investment. At that time, the money did solve the economic difficulties, but the consequence was a lot of overcapacity. This year, when the global economy is in a downturn, these investments have become a problem. At present, the government can only reinvest in solving this problem, but this temporary solution does not cure the root cause, and at the same time it has caused a more serious problem, but the outbreak of that serious problem will take time.

The current solution is to stimulate the economy by domestic demand, which is also a model for learning from developed economies.

I thought of these for the time being, purely original, and forgot to adopt them!