Chapter 1621: Nowhere

"Old is not age, but mentality."
Tan Zhenhua replied: "The older the mentality, the more conservative the investment behavior, and the most conservative investment is to buy a piece of property and then sit on the ground to collect rent."
His complaints are unavoidable: "Liu Ye, you watched the development of Xiangjiang to this day. The big brothers of the year were for survival and development. They dared to do any adventure, and it was precisely because of their back then. The adventurous spirit keeps Xiangjiang's society a vitality of innovation and development. Coupled with the backing of the mainland, the right time and the right place, the prosperity of Xiangjiang today has been achieved. What a pity, what a pity, they are now big bosses, but lost The arrogance back then, I just wanted to use the most conservative method to do it, but I didn't know that this would bury the roots of the future decline of Xiangjiang!"
Shao Liuye frowned and asked: "Zhenhua, you said that, I'm a little curious. They just want to preserve the results of difficult entrepreneurial ventures and leave a worry-free foundation for future generations. , Where is it as serious as you said, the bane? Can't talk about it?"
"Grandpa, I have my reasons for saying this. Grandpa, I would like to ask you a question. If a social class is solidified and the ascent of young people is closed, they will not find a direction to fight, and it will even be very difficult to settle down in the future. Will this society still have vitality? Will it still have a good future for development?"
Shao Yifu pondered for a moment, then shook his head slightly and said, "Difficult."
Tan Zhenhua said: "Look, grandpa, this is the problem. Xiangjiang is just so big. Everyone is planning to eat in the real estate industry. Due to the benchmarking effect of wealth accumulation, it will drive the wealth of the entire society to concentrate in this field. It is also destined to cause the price of real estate assets to soar. When asset prices are high, it will inevitably lead to an increase in real estate rents. These costs will eventually be passed on to every commodity or service we buy in daily life, which is equivalent to , The real estate industry is sucking the blood of the entire society, and the wealth gained from this blood-sucking will eventually be divided by several oligarchs in the real estate industry. The achievement of their wealth myth will lead to the lack of overall blood supply capacity of the entire society to other industries. Industry, scientific research, retail and other industries will not be able to develop. So what will happen to the employment of young people in the future? Will they all go to real estate? Can real estate provide so many jobs?"
Shao Yifu shook his head and said, "Of course it's impossible."
Tan Zhenhua said: "Yes, it's impossible, because even the most primitive social structure must first address the four basic human needs of "food, clothing, shelter, transportation", and modern society also needs to solve higher-level human development issues such as education, medical care, and culture. This is destined to constitute the complexity and diversity of industries in modern society. Real estate or any single industry cannot provide a self-circulating economic system. For most industries, real estate, or because of real estate The expenses incurred are actually listed under the cost item in the balance sheet. The higher the cost, the worse the profitability and market competitiveness of the product. Grandpa, think about it, when this cost increase exceeds the fairness of the goods. What happens after profitability under value?"
Shao Yifu thought for a while and replied: "It will cause operating losses, so the solution is either to increase the price, or to reduce other costs, or to stop this product altogether."
"Yes, there are these three solutions, but most of the goods in the world have more than one supplier. Therefore, it is often difficult to obtain market recognition for price increases, and it is actually difficult to reduce other costs. It’s also difficult. Looking at the U.S. today, we know that the method they adopted is to transfer a large number of low-value-added industries to areas with relatively low comprehensive costs. A large part of China’s economic development over the years is from Countries like the United States have undertaken these industries. For China, this is of course a good thing, but for the United States, this is not necessarily the case. In the short term, their companies have achieved cost control by transferring production capacity, but in the long term When we look at it, this behavior has also led to the interruption of its domestic industrial chain. Once the industrial chain of modern industry is interrupted, it is very difficult to recover. And there is a biggest problem in that the transfer of industry will inevitably lead to With the transfer of jobs, Americans now seem to be cooking oil with flowers after the defeat of Soviet Russia, but they are pregnant with an acne that cannot be cured in the future. Their industrial capabilities will become worse and worse. They used to be engaged in industry, especially Manufacturing workers will also face an increasingly serious unemployment crisis. The rusty Great Lakes region has proved this, and this rusty spot will become bigger and bigger, and eventually, it may become an incurable disease in the American society! "
Shao Yifu's brows have been frowned into a deep "Chuan" font-Tan Zhenhua seems to be using the United States as an example, but is it not the current Xiangjiang?
Once upon a time, how prosperous Xiangjiang's manufacturing industry was. Clothing, small home appliances, various department stores, and Chinese medicines, the products manufactured by Xiangjiang used to be synonymous with cheap and good quality, but now? How many factories can you find after walking through the whole Xiangjiang City? Li Jiacheng, who is known as the "God of Xiangjiang Management", has probably forgotten the craftsmanship of making plastic flowers? What they are pursuing now is to turn Xiangjiang into his "Li Family City"!
But the future of this city, in Tan Zhenhua's eyes, may become a worthless empty city!
Tan Zhenhua seems to have not noticed the change in Shao Yifu’s expression. He continues to cherish his views:
High real estate prices will also cause the younger generation to bear the burden of heavy long-term debt just for the sake of
home ownership
. If their income can be supported, it is okay. If they cannot be supported, their spirit will inevitably fall to the other extreme, and may become hostile as a result, and the debt and financial leverage of the entire society will also Will continue to climb, and thus accumulate greater and greater systemic risks. Grandpa, you said, this is not the bane of the future, and what is it?"
Shao Yifu was speechless and said for a while: "Zhenhua, what you said is good, but it may take many years for the phenomena you mentioned to show up, but it is difficult for you to use this reason to convince them to give up their immediate interests."
Tan Zhenhua said: "It's hard to convince. Grandpa, you said it will take many years, but I think that according to the recent increase in real estate prices, maybe it won't take 20 years to see that day. That's why I proposed this at the meeting. I hope they can realize this, but unfortunately, there is no way."
Yifu Shao suddenly raised his eyebrows.
He has recognized this cheap grandson for more than ten years. He has seen him grow from a young boy to a powerful hero and richest Chinese. He knows that he has a stomach of bad water...cough cough cough, then he said that the road is nowhere, for sure He had been prepared for a crooked way a long time ago-this kind of thing, his cheap grandson has done more than once, and it has become one of his labels.
"Do you have a plan?" he asked.
"Yes." Tan Zhenhua replied: "This time, I want the tree to blossom."