It’s time to give money to the students!

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Original: Gu Ziming authorized to reprint this article to wechat official account: political affairs hall plus2019

Every penny you spend, you vote for the future of the world,

Every time an enterprise invests money, it is making a choice about the future of the world,

Every tax spent by the government will determine the future direction of the people and enterprises.

In the second year of the Biden administration, the logic of American economic policy has finally ushered in a complete shift from the Republican Party to the Democratic Party.

Following the signing of the $280 billion chip bill, the more important student loan relief will also be implemented.

The White House announced that US individuals with an annual income of less than US $125000 will be exempted from US $10000 of federal student loans, and those receiving federal Pell grants will be exempted from US $20000 of student loans, which is estimated to be US $500 billion of debt relief.

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I would like to share my thoughts on debt relief.

The huge monthly table contraction of the Federal Reserve of tens of billions of dollars and the continuous interest rate increase of 300 basis points in half a year, which we were concerned about, did not have a disastrous and sustained impact on the US stock market, and was soon offset by the fiscal policy that the Biden administration continued to withdraw.

At the same time, while drawing old-fashioned liquidity from the market, new-style liquidity was injected into the market, which also led to the transformation of the economic and industrial structure of the United States.

Previously, Trump’s Republican government thought that the cheap money should be given to the supply side, and the investment of the market and enterprises should promote employment. Because the enterprises have money, they are not only willing to pay higher wages to their employees, but also driven by the supply and demand relationship, the “local magnates” who do not lack money have also raised the prices of major commodities, meeting the interests of the old Republican money.

Now, the idea of Biden’s democratic government is to give money to the demand side, so that consumers can spend more money in their pockets, and customers can vote which enterprises should survive in the market. The transformation of “party a” and purchasing power will allow downstream enterprises to seize the pricing power from upstream enterprises. Oil, minerals and other bulk commodities will begin to enter a downward cycle, and the rapidly weakening consumer market is expected to undergo an upgrade after a heavy blow.

It can be said that, compared with the Republican Party, which invests money in the past and lets successful people lead us to rebuild glory, the democratic party invests money in the future and lets young people explore and “vote” according to their own wishes.

No matter which scheme is adopted, it is a natural selection mode in essence. It is either for the successful entrepreneurs to make decisions or for the future “new people” to make choices.

Compared with the two solutions of the United States, China uses the third solution.

The right to choose is not given to enterprises or young people. Instead, the central government, the “big parent”, makes decisions for everyone. From chips to new energy vehicles, to scenery, green power and data, etc., the central government has mapped out a number of clear routes. What everyone needs to do is follow the road map.

This set of thinking has greatly avoided the waste caused by the two American schemes, but in the implementation process, similar to the Republican strategy, it is formulated by the elite, which will quickly push up the asset price of the upstream and benefit a few upstream resource monopolists……

At present, various kinds of economic stimulus are frequent, but the marginal effect is getting weaker and weaker. I think we should learn from Biden’s idea of giving money to students.

This round of epidemic has not only caused countless college students to suffer heavy losses in their studies for three years, but also suffered a series of blows from the employment situation. It has turned the most creative latecomers into the most oppressed groups.

At present, the country is facing a land and financial crisis and great pressure on the stability of young people. It is better to take out a national transfer fund to provide housing subsidies or public rental housing for college students who graduate from the “new three years”.

Let these fresh students stay in the city comfortably, not only provide high-quality labor for enterprises, but also stimulate new industrial consumption, drive the development of urban economy, and stabilize the price of real estate through rent, so that the government can recover the subsidy cost through land sales.

In order to remain young, we should probably give money to the students.

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