It is said that there is overcapacity now, why are prices still rising steadily?

Updated on Financial 2024-05-06
31 answers
  1. Anonymous users2024-02-09

    The more money is printed, the more it is depreciated internally, the smart people go into debt, and the fools go to the bank to deposit money. The recent depreciation of bank deposits has been in vain. Life is short for decades, and it is right to be happy and enjoy.

  2. Anonymous users2024-02-08

    Since the huge amount of investment in fixed assets has led to the appreciation of loss-making fixed assets, it means that the fixed assets represented by housing prices have begun to extract social liquid capital, and at the same time have begun to pull up and distort market economic prices.

  3. Anonymous users2024-02-07

    It's very simple, because money is depreciating, and money purchases can weaken, not to mention the appreciation of the renminbi, the common people know very well that the inflationary bubble economy has no real output.

  4. Anonymous users2024-02-06

    Overcapacity is the overcapacity of some industrial enterprises (cement, electrolytic aluminum, flat glass, steel and ships), and the corresponding capacity of many industrial enterprises is insufficient; The price ** mainly refers to consumer goods, and there is no significant causal relationship between the two.

  5. Anonymous users2024-02-05

    How much a commodity sells is not determined by the capacity of the merchant, but by the supply and demand curve. If you sell more at a low price, you can increase profits, and the production capacity is allowed, so that the ** will be lowered. If the merchant lowers the price, but cannot increase the profit, naturally no one will reduce the price.

  6. Anonymous users2024-02-04

    Chinese are very, very frugal in buying clothes, which may instead cost them more money to buy clothes. Because even if the merchant lowers the price, it cannot significantly increase sales. Americans' consumption patterns are very extensive, and a piece of clothing of good quality is often less than half of that of similar goods in China.

  7. Anonymous users2024-02-03

    Since the reform and opening up, it has been steadily leading to labor and rent, which are closely related to these two, such as all the traditional tertiary industries, which are all followed, and as for others, it is not necessarily.

  8. Anonymous users2024-02-02

    Excess must be ****, such as steel, coal, white goods, mobile phones, and non-excess must follow the market, such as green food, first-line houses.

  9. Anonymous users2024-02-01

    Prices have not risen, what has risen is the labor cost attached to the price, for example, the money you spend on decoration and buying materials, there is no labor expensive, the ex-factory price of things is not high, and the cost of logistics, transportation, and sales process in the middle is added, and the price is high.

  10. Anonymous users2024-01-31

    A lot of things are not market behavior, production and sales of most things have to be recorded, the price is too high to disrupt the market, low ticket prices are malicious competition, so prices have been relatively stable increases, and individual things have only occasionally risen too well, such as garlic in previous years, and finally it is not normal, please correct what you said

  11. Anonymous users2024-01-30

    The ex-factory price of the item is not expensive, the main seller makes too much, for example, a towel is about three yuan and eight cents at the wholesale price, and it is sold for ten to twelve yuan in the supermarket.

  12. Anonymous users2024-01-29

    Money is depreciating more and more, the life of ordinary people is becoming more and more difficult, the society is becoming more and more impetuous, and people are getting worse and worse.

  13. Anonymous users2024-01-28

    Judging from the data, China's overcapacity in cement, electrolytic aluminum, flat glass, steel and ships is prominent, while there is no problem in railway transportation equipment, power transmission and distribution and control equipment, professional instrumentation, textiles and clothing, sports and entertainment products, new energy vehicles, EMUs, smart TVs, smart phones, optoelectronic devices, high-grade copper processing products, and aluminum for transportation.

  14. Anonymous users2024-01-27

    Please, can you increase the price of housing without increasing the price of vegetables, you can't afford to eat vegetables, it's more expensive than eating meat!

  15. Anonymous users2024-01-26

    Pay attention to the commodity to know whether there is an excess of supply and demand. The higher the cost of living, the better the socio-economy, and the price should be.

  16. Anonymous users2024-01-25

    Overcapacity refers to a single overcapacity. And it doesn't mean that there is a total excess. In addition, production capacity and output value are two different things.

    The production capacity is the quantity of the production organization, and the output value is the quantity (quantity and quality) of the product. Therefore, the rise in prices is a phenomenon that occurs in relation to the interrelationship between output and money.

  17. Anonymous users2024-01-24

    The economy is growing, inflation is steadily increasing, why can't prices rise steadily, and overcapacity is not the same as an economic crisis.

  18. Anonymous users2024-01-23

    The exchange rate can be the result of a two-track system. That's one of the features, but I've heard that it won't last long.

  19. Anonymous users2024-01-22

    Because housing prices have been rising, driving prices up across the board.

  20. Anonymous users2024-01-21

    This is how the crisis of the capitalist economy came. There is overcapacity, there is not enough spending power, and the capitalists prefer to pour milk into the river. That's what the political books say anyway.

  21. Anonymous users2024-01-20

    The production of commodities is related to production, consumption, and management. The refinement of the division of labor increases the management costs of the five links related to the design, production, use, and maintenance of the product. The management departments of commodity production include material department, ** department, production department, technology department, marketing department, quality inspection department, safety and environmental protection department, comprehensive department, security department, and general adjustment room.

    The increase in the salaries of the supervisors of these departments and the increase in the pensions of retirees in the same position led to an increase in commodities.

  22. Anonymous users2024-01-19

    Overcapacity is not too much production, but overcapacity, but there is no goods to produce, and many factories are not full of food and starvation.

  23. Anonymous users2024-01-18

    The international habitual trick is to issue more currency and raise prices!

  24. Anonymous users2024-01-17

    Shouldn't overcapacity be cheaper. Prices are every day. It is clear that the currency has depreciated too much.

  25. Anonymous users2024-01-16

    This year's fruits and vegetables have been expensive. Fruit farmers and vegetable planting bases basically say that they don't make money. Selling it is so expensive, and the money is going to **.

    I can't afford to eat the dishes. In the past, I couldn't afford to eat meat, but now vegetables and fruits are more expensive than meat and fish. Hate capitalists.

    Rich is good. Influence the national market. Let me have a good experience of being cut a leek.

    Next year, it is estimated that a month's salary will be enough for two meals.

  26. Anonymous users2024-01-15

    Wages have risen more than a hundred times, and the price of vegetables is not inflated. How do vegetable farmers live!

  27. Anonymous users2024-01-14

    Because it is export overcapacity, not internal capacity.

  28. Anonymous users2024-01-13

    The market has an invisible hand, and due to the egoism of individuals and enterprises, limited resources can be spontaneously optimally allocated, so as to maximize benefits.

    This has also led to a high-level problem of overcapacity.

    De-capacity is an act that will not directly bring benefits, and the market will not automatically and spontaneously complete it, so we need macro-control means to intervene.

    However, macroeconomic regulation and control also have advantages and disadvantages, it can curb or solve some of the production capacity problems in the period of economic overheating, but the enterprises, a large number of workers and potential entrants born in the overheating period need to take into account the interests of multiple parties because of the too many associated problems involved, but it is difficult to find an effective way. Macroeconomic control is not a panacea.

    If the adjustment is too fast, it will increase the unemployment rate; Adjustment that is too slow will increase the opportunity cost of employment choices. At present, many manufacturing enterprises that rely on state support to survive are facing such problems.

    But as Mr. Fan said, there are no bad industries, only bad enterprises. To develop the country, the goal of urbanization is far from being achieved, and the manufacturing industry is definitely still the cornerstone of our progress.

    It's just that the sequelae of the period of rapid development need to be digested slowly, and the problems exposed after the economic slowdown are what we should really pay attention to.

    Only by learning the lessons of history can we seize the opportunity when the next cycle of development comes!

    The premise for the normal operation of an enterprise is based on the maximization of shareholder benefits. This is the purpose of the existence of every enterprise, and the interests of all stakeholders can only be guaranteed when sufficient surplus value is created. Enterprises that operate without this principle will eventually be eliminated from the competition in the market.

    Therefore, the quality of a business is measured by clear and quantifiable financial indicators, that is, its profitability.

    However, the macro economy is facing more complex problems, which can neither be quantified, nor can it only focus on growth, and even curb the excessive speed of economic development in extraordinary times. What it wants to solve is the problem of resource distribution, and it has to face more social problems by alleviating the gap between the rich and the poor and class contradictions through taxation, financial allocation, and the construction of public facilities.

    It is difficult for companies to pay attention to this, at least until they solve their own survival problems, they do not have the strength to deal with these problems, which is after all a market with few revenues, long cycles, or even completely altruistic.

    So, is it that if it is not quantifiable, the benefits are small, and the cycle is long, it is destined that public resources and infrastructure cannot be solved through the market? This may be too pessimistic.

    In my opinion, to improve the effectiveness of macroeconomic control, in addition to control in times of overheating, support in times of recession. We should be able to more actively establish effective incentive systems and measures to encourage enterprises and individuals to work towards a common direction and goal.

  29. Anonymous users2024-01-12

    Why is there overcapacity? Zhang Weiying: Because the increased wealth has not been turned into new products.

  30. Anonymous users2024-01-11

    Direct cause. The direct reason is that investment has continued to grow too fast in the past few years, and some industries such as real estate and steel investment have obviously overheated, resulting in capacity expansion far exceeding the speed of demand expansion. In the four consecutive years from 2002 to 2005, the growth rate of fixed asset investment remained above 20 percent, while the growth rate of consumption (total retail sales of consumer goods) was between 9 and 13 percent, and the former was about one time faster than the latter.

    Investment is demand in the current period, and supply is formed in the next period, and the supply capacity continues to grow at a rate about 1 times faster than the demand (final demand), which will inevitably lead to the problem of overcapacity in the coming years.

    Technical reasons make capacity expansion fairly easy, as evidenced by the fact that supply capacity is growing significantly faster than demand capacity. Since the mid-90s of the last century, under the effect of the full supply of funds, the acceleration of technological progress and the weakening of the bottleneck of the investment growth system (** deregulation of industry access), the growth of supply capacity has accelerated, on the contrary, the growth of demand capacity has been relatively slow due to the constraints of many medium and long-term factors. This potential gap between supply growth and demand growth does not necessarily lead to overproduction, i.e., technical factors only provide the possibility of overcapacity.

    Root cause. The fundamental reason is that the mode of economic growth is irrational.

    First of all, it is manifested in the strong ability of local governments to intervene in investment and economic growth, and the formation of vicious investment competition between localities, making it difficult to suppress the expansion of production capacity. If the over-reliance on direct impetus for economic growth cannot be fundamentally reversed, then the problem of overinvestment will be unavoidable.

    Secondly, it is reflected in the low technological level of many industries and the weak ability of enterprises to innovate independently. This makes the competition of enterprises mainly reflected in the quantitative expansion of resource input and output, as well as the competition of the first class, rather than focusing on the improvement of independent innovation ability and quality.

    Third, the degree of industrial concentration is not high, especially in many industries due to institutional reasons, in the long-term market competition is still unable to achieve the effective concentration of capital and brand, such as due to the existence of local protectionism and the lag of institutional reform, many cross-departmental, cross-industry, cross-ownership mergers and acquisitions are difficult to realize, and the result is often excessive industrial competition. That is, it is difficult for some technology- and capital-intensive industries to form a market structure of monopolistic competition, and the result will inevitably be that the problem of excessive investment growth in industries is difficult to be self-corrected by the market mechanism.

    Finally, the "windfall profit effect" formed by the combination of administrative monopoly and natural monopoly or other factors has also strengthened the growth of investment in some industries. For example, the real estate industry, iron and steel, and automobiles all have windfall factors, which make social funds double the inflow into these sectors, and eventually overexpand the production capacity of these industries.

    One of the situations is that the combination of administrative monopoly and natural monopoly has made some social public goods insufficient, resulting in the distortion of factors, such as due to the influence of monopoly factors, the development of railway transportation lags behind, resulting in a large gap in capacity, the result is: despite the rapid growth of coal, but due to insufficient capacity, coal prices have skyrocketed, and formed "windfall profits", and "windfall profits" will further induce all localities to increase investment in the coal industry.

  31. Anonymous users2024-01-10

    Summary. Frequent price reductions mean a loss of brand image, as most consumers have always thought of the stereotype that "top brands don't discount".

    Frequent price reductions mean a loss of brand image, as most consumers have always thought of the stereotype that "top brands don't discount".

    Frequent price reductions will only continue to attract some low-end consumer groups, and in the long run, a vicious cycle of jujube answering will be formed, and there are more and more low-end consumer groups, but it is unrealistic to rely on low-end consumer groups to "feed" a brand.

    Frequent price reductions can affect employee motivation. Frequent price reductions will lead to a lack of self-confidence in guiding customers to consume high-end products, and the idea of selling at a low price is deep-rooted, so that the best reason for the unsatisfactory performance of the sales Bi Zhisong staff is found - because of the best reasons, the transaction cannot be made. As a result, employees have a weak sense of learning and do not seek to make progress.

    Frequent training and price reduction will directly affect the profits of enterprises. In order to meet the psychology of consumers "taking advantage", merchants of similar goods will strive for the interests of their own products, and will compare prices with each other, and continue to reduce prices until there is no way to reduce them. In this way, the profitability of the product will continue to decrease, and it will not be profitable, which will also lead to a series of chain adverse reactions of the enterprise, such as the difficulty of the operation of the enterprise, the increase of low-cost users, and so on. With towns.

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