No regrets ninety-two

Chapter 831 Convincing Reasons

Many people think that it is a very simple matter for companies to deal with inflation, that is, to raise prices.

Since the raw materials for production have increased, the price of the product can also be increased.

This is called the wool coming out of the sheep.

actually not.

Take wineries, for example.

The price of food for the production of puree liquor has increased, but the price of liquor sold cannot be raised casually, because of market competition.

If other people's wines have not yet increased in price, you will rise first, and consumers will have a bad impression that this brand is driving up prices, and they will choose other brands of wine instead.

Even if the prices of other drinks have also increased later, people will still think that your brand is the one who caused the trouble.

This is very detrimental to the image of the enterprise.

Therefore, the price increase behavior must be cautious and follow the general trend.

The same is true for food processing plants, and the same is true for restaurants.

Therefore, for the operators here, the most important thing to consider is the difficult problem that the price rise of raw materials and the price increase of product sales must lag behind.

"There is another problem. Another consequence of inflation is the rise in wages. In this area, not only can we not lag behind, but we have to raise them in advance. All units are requested to seriously consider the increase in wages and benefits."

Wu Xiaozheng raised another problem.

Yes, 93 was also a year when the per capita income of residents rose sharply. The most obvious manifestation is that the wages of many units have increased, and some units will directly double.

Last year, those with a monthly salary of 200 or more were already considered good treatment, but by the end of this year, a monthly salary of 300 can only be considered average.

Of course, this still depends on the efficiency of the unit.

Units with good economic benefits will naturally increase wages and improve benefits.

However, for units with poor efficiency, it is not certain whether the original wages can be paid.

The gap between the rich and the poor in the country is slowly widening in this way.

For Wu's enterprises, it is necessary to take the lead in improving the treatment level if they want to retain and attract talents and maintain a high degree of enthusiasm for work.

If necessary, Wu Xiaozheng would rather the company earn less than treat everyone badly.

"Okay, the official meeting is here, everyone prepare lunch."

Issues come up that don't need to be resolved right away at the meeting.

In fact, the problems faced by each company are not exactly the same, and it would only be a waste of time to discuss them at the meeting.

A more feasible way is for each unit to come up with their own ideas and come up with a plan, and then submit it to Wu Xiaozheng for review.

But no one wanted to let him go.

The meeting was over, but no one left.

While waiting for the food to be served, everyone began to ask Wu Xiaozheng questions in a chat mode.

The first to attack was Zhuang Ningwen, who was authorized by Wu Xiaozheng to attend this meeting.

Among the many people present, her education is the highest, and she graduated from an economics-related major.

Now she is very interested in the topic of inflation that Wu Xiaozheng warned against.

"Jacky, why are you so sure that China will have inflation? Can you explain it from an economic point of view?"

Wu Xiaozheng immediately felt a headache.

Can I tell you, is this a personal experience in a previous life?

Alas, when you meet a serious person, you have to spend a lot of time talking!
Fortunately, this is not a problem for Wu Xiaozheng.

He thought about it again, all the people here are the core of Wu's enterprise, and it shouldn't be a bad thing to instill a little more economics knowledge in them.

It is good to read more books.

Regarding the causes of inflation, economic theory has not been conclusive.

From the perspective of short-term analysis, there are mainly three aspects: demand-pull, cost-push and structural reasons.

From the perspective of long-term analysis, academic circles generally believe that the cause of inflation lies in the increase in the amount of money.

But in the face of the inflation that has begun to come this time, Wu Xiaozheng can explain it quite well by combining the experience of his previous life.

He began to talk eloquently.

"The first reason has a lot to do with the overheating of China's economy and the shortage of products."

With Mr. Deng's southern tour and important speech, China clarified the development route of the market economy, and the whole country soon set off a climax of economic construction.

However, the foundation in front of China is too weak. Therefore, while all over the world are rushing to develop the economy and construction, the supply of products and raw materials is in short supply.

One of the characteristics of a market economy is the self-regulation of commodity prices.

Since the supply of raw materials and products is in short supply, the inevitable consequence is to increase prices. Whatever is in short supply, the higher the price increase.

According to the situation last year, coal, oil and other energy sources were the first to stand up, followed by construction materials, etc. These have all risen slightly, but this is just the beginning.

This explanation was immediately approved by Zhuang Ningwen and everyone else.

"The second reason is that with the development of the economy, the wallets of ordinary people have been enriched, and their consumption power and level have been greatly improved."

This is a very important reason for the price increase of daily necessities.

Take the employees of Wu's enterprise as an example.

When the employees of state-owned enterprises and civil servants were still earning more than 100 and 200 yuan in salary, in Wu’s company, the monthly salary of more than 200 yuan was already a low standard. A salary of [-] yuan, five or six hundred yuan is not uncommon.

There will be a large bonus at the end of this year.

And this phenomenon is not unique to Wu's companies. Most companies that are profitable in the process of economic development will definitely increase everyone's welfare because of their profits.

This means that more people have rich wallets, and a small number of people get rich first.

For those with substantial purses, the first thing to do is to spend to make life more comfortable for themselves and their families.

Therefore, the demand for basic necessities of life increases.

Just like those villagers in Xiangshui Village, eating meat used to be a welfare during festivals, but now it has become the norm in life.

Therefore, the demand for meat has increased, and the supply of meat is in short supply, which will lead to an increase in the price of pork and an increase in the number of people who raise pigs.

As more people raised pigs, the supply of food began to fall short of demand.

……

It's a chain reaction.

As a result, the prices of pork and grain have risen, and it has also driven up the prices of other raw materials.

Another very convincing reason.

"Another very important reason is the massive issuance of currency and the influx of foreign capital."

This is also a very important reason.

If everyone rushes to start economic construction, it will inevitably bring about another problem, that is, the demand for circulation will increase, and many enterprises will encounter difficulties in payment.

In order to meet the needs of the market, the country has to increase the issuance of currency.

This means that the currency circulating in the market is constantly increasing.

And because of the needs of economic development, various places began to attract investment on a large scale, and a large amount of foreign capital also poured into the country.

The influx of foreign capital has also led to a continued increase in the currency in circulation in the market.

And these circulating currencies have further increased everyone's purchasing power, and once again pushed up the prices of raw materials and various commodities.

In this complex situation, inflation has become inevitable.

Now Zhuang Ningwen and everyone were convinced.

There are reasons and evidence, and there are objective facts to prove that it is difficult for everyone to question whether inflation will really happen.

Although he was convinced by Wu Xiaozheng's prediction, the topic did not end.

For everyone, the most important thing is how to overcome this difficulty.

We still have to count on Wu Xiaozheng for this matter!

So everyone aimed at Wu Xiaozheng again.

(End of this chapter)