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As a result of the decrease in consumer spending, the products produced by the factories cannot be sold, the workers are in a state of loss, the factories are unable to pay wages or lay off workers, and unemployment increases. Unemployment increases, incomes fall, and consumer spending decreases, creating a vicious circle. So when the economy is booming, the unemployment rate is lower, the products are abundant, the ** is cheap, and everyone has money to spend.
Due to the great abundance of products, the supply of products in factories will exceed demand, and the price will be reduced, and some will reduce production. But the demand is still increasing, and finally slowly as the inventory decreases, **start**. The money in people's hands is slowly decreasing, and some of them have begun to borrow money to consume, ** have begun, and consumer spending has begun to decrease in agitation.
The economy entered a recession, and after a period of depression, it began to expand again, and slowly prospered again, and the economy went through four cycles, recovery, prosperity, recession, and depression, just like spring, summer, autumn and winter, and so on.
Some of the consumption expenditures of one person are the income of another person, and if the consumption expenditure decreases, the income of some people will decrease, and the income will decrease, which in turn will lead to a decrease in consumption. In the end, production shrinks or the goods produced are squeezed, and they cannot be sold.
The modern economy generally uses credit overdraft consumption to increase domestic demand, if moderate, it is conducive to economic development, however, excessive overdraft consumption is harmful to the economy. Because credit has a cycle, let's take a family consumption as an example, if a family starts to have no money to spend, the bank gives a limit of 100,000 yuan, he consumes the 100,000 yuan a year ago, and in the second or third year, in order to repay the debt, he no longer consumes excessively. Because the factory saw the increase in consumption in the first year, it felt that there was a market and would increase production, but in the second and third years, the factory produced a lot of goods, and because people had no money to consume, they could no longer spend through borrowing, and the income was used to pay off debts.
So it leads to overproduction. This kind of product is relatively in surplus, and some products are in short supply, such as daily necessities, food. That's why when the economy is in crisis, the food and vegetables in the supermarket are snapped up.
Maybe the car, or some mid-to-high-end goods, can't be sold. Factories will go out of business,
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Over the past 70 years since the founding of the People's Republic of China, China has adhered to development as the top priority, successfully mastered the overall situation of macroeconomic development, effectively coped with and defused various risks and challenges, taken a sonorous and powerful step in China's economic development, created an unprecedented great miracle in human history, and became a dazzling chapter in the world's development process.
The total economic volume ranks second in the world, and it has become the world's largest goods country and the largest industrial country. Over the past 40 years of reform and opening up, China's economy has grown at an average annual rate, creating an unprecedented miracle in the history of human economy. "Since the reform and opening up, China has made the greatest economic achievements in human history.
Luo Siyi, former director of the London Economic and Business Policy Agency, commented.
As a result, many new contradictions and problems have formed in Chinese society.
Problem 1: Diversity of cultures and beliefs leads to a pluralism of values, and brings about confusion in the world outlook and outlook on life, and the dilution of morality, and even some people have no standards and principles of right and wrong, right and wrong, truth and falsehood, good and evil.
Question 2: Due to the acceleration of the modernization process, the trend of de-nationalization is becoming more and more obvious (such as the problem of a large number of celebrities emigrating overseas), and the consequence of de-nationalization is de-nationalization and de-sinicization, which will seriously threaten the patriotic feelings of the Chinese nation.
Problem 3: Modern young people pay more and more attention to material wealth, and more and more ignore spiritual wealth (for example, there are few people who usually read). A nation that lacks spiritual pursuits will not have a good future.
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