Dreaming back to 1949, the great powers were there to deceive us

After a heated discussion, the three economists reluctantly agreed with Hu Zhenhua's proposal to expand M2.

They are well aware that such expansion is likely to harm the interests of ordinary people, but they have to give it a try now.

Guan Tianpei was still worried about inflation and asked,

"Our country is short of supplies. I wonder if you have any way to ensure stable prices?"

Hu Zhenhua stood up and wrote on the blackboard: Grain and cotton are state monopolies, and industrial products are subject to heavy taxes!

"The main contradiction in today's society is the problem of food and clothing! As long as we can ensure that inflation does not appear in the prices of grain and cotton, society will be stable!"

Guan Tianpei also stood up and pointed at the 'heavy taxes on industrial products' and asked,

"The country is vigorously developing industry, and many places are willing to pay money to attract factories. Your heavy taxation is a bit counterintuitive!"

Hu Zhenhua smiled bitterly and said,

"Imposing heavy taxes is an attempt to rob the rich and help the poor! Currently, our industrial capacity is severely insufficient. Those who can afford industrial products must have some savings. For example, if you sell a bicycle for 100 yuan, they'll buy it. But won't they buy it for 120 yuan? The tax revenue collected by the state can be reinvested in heavy industry. Within five years, our economic situation will be vastly different. Then we can lower the tax rate!"

"What you said seems to make some sense!"

Hu Zhenhua suddenly remembered something and smiled evilly.

"Mr. Guan, I wonder what gift you gave to your wife when you got married?"

Guan Tianpei's face suddenly flushed slightly, and he said embarrassedly,

"There was no such thing as a betrothal gift. I was a poor boy at the time, and my father-in-law paid for my wedding dress!"

"You have a good father-in-law!"

Hu Zhenhua's eyes deepened, and he said lightly,

"In the future, marriages will require three essential items: a bicycle, a sewing machine, and a watch!"

These three items, commonly known as "three turns and one ring", were standard for weddings in the 1960s and 1970s.

Later on, the three large rooms became the refrigerator, TV, and washing machine.

He Baoyi was very thoughtful and understood what Hu Zhenhua meant. She said,

"Mr. Hu, are you trying to recover the money invested in large-scale projects by creating demand?"

Hu Zhenhua gave a thumbs up and praised,

"As expected of an intellectual, you hit the nail on the head! The union of a couple often drains a family's savings over many years!"

He Baoyi snorted coldly and cursed,

"Black-hearted capitalists are always trying to find ways to empty the pockets of ordinary people!"

Guan Tianpei's expression changed and he scolded,

"Director He, please don't be rude!"

Hu Zhenhua waved his hand, indicating that he didn't care, and said with a smile,

"Economic behavior is like Zhou Yu fighting Huang Gai: one willing to fight, the other willing to be beaten. As long as it's a fair transaction and both parties are willing, there's nothing to blame! It's true that I, Hu Zhenhua, am a capitalist, but have I ever made a penny from ordinary people?"

He Baoyi was speechless. Although TA's company had strong profits in Chongming, most of the profits were accounts receivable. It would take several years to recover this part of the funds. Considering inflation, whether TA's company could make a profit was another matter.

Different accounting treatments can produce diametrically opposed results. On the surface, it may appear that you are making money, but in reality, you are actually losing money.

Guan Tianpei already had a general understanding of Hu Zhenhua's economic strategy, which was to expand M2 through large-scale public works. With more money in the market, the economy would become more active.

Then, by imposing heavy taxes on industrial products, the funds obtained were used to develop heavy industry.

Guan Tianpei thought for a moment and asked,

"What about light industry? How should it be developed?"

Hu Zhenhua waved his hand and said with a smile,

"The light industry sector is being handed over to private capital, just like the many township enterprises in Jiangsu Province. Aren't they developing very well?"

He Baoyi did not agree with Lao Hu's statement and retorted,

"Isn't this inappropriate? Once controls are relaxed, won't unscrupulous businessmen attempt a capitalist restoration?"

Hu Zhenhua chuckled twice and asked,

“What do you think of the socialist market economy?”

The socialist market economy is a topic discussed many times by senior officials. Although it has not yet been decided as a programmatic theory for economic development, it has been reflected in many decisions.

Its core consists of three parts: ownership basis, resource allocation method, and distribution method!

Public ownership is the foundation. This is the prerequisite! Only when this condition is met can we develop an economy where multiple ownership systems coexist.

Guan Tianpei suddenly stood up and bowed slightly to Lao Hu, which shocked the latter and he quickly helped Guan Tianpei up.

"Our biggest debate right now is 'what does it mean to have public ownership as the mainstay?' Some believe the government should control key industries like steel, oil, chemicals, and electricity, leaving the rest to private capital. Others, on the other hand, believe the government should hold a controlling stake in all industries to ensure the socialist system remains stable! Mr. Hu, you're the originator of this theory. What does public ownership as the mainstay mean?"

Hu Zhenhua picked up the teacup and took a sip. The answer to this question was obvious, so of course the first option was the right one.

However, we cannot say that the second option is wrong. If we want the theory of socialist market economy to be accepted by the vast majority of people, we must have a plan that is acceptable to the vast majority of people.

It's not easy!

Hu Zhenhua thought for a long time before he spoke.

"Let me ask you three a question first: Is capital good or evil?"

He Baoyi was about to say yes, but she swallowed the words back when they reached her lips.

Guan Tianpei understood what Lao Hu meant and said with a smile,

“Capital has no good or evil, it’s people who have good and evil!”

Hu Zhenhua stood up and wrote on the blackboard: state-owned capital, private capital, foreign capital!

He turned around and talked.

"I think you must have fallen into a misunderstanding, thinking that only those controlled by state-owned capital are considered publicly owned, and that those with private capital are not! In fact, this understanding is completely wrong! Let me give you a simple example. There is a sugar factory in Xiaowangzhuang. The head of the factory is called Xu Youcai. You all know him, right?"

Guan Tianpei laughed and said,

"Xu Youcai's name is well-known in Jiangbei! His sugar factory is developing very rapidly, and sugar blocks are already sold throughout the Northeast!"

Hu Zhenhua nodded slightly and asked,

"Do you think the ownership of the Xiaowangzhuang sugar factory belongs to state-owned capital or private capital?"

"of course……"

Guan Tianpei paused, feeling a little nervous, and said,

"I was just about to ask about the issue of Xiaowangzhuang. Hundreds of households in their village have now built small Western-style houses, while many people in surrounding villages are still starving. Is this appropriate?"

Hu Zhenhua threw the chalk in his hand and said unhappily,

"What's inappropriate about that?! They didn't steal or rob, they made it all with their own hands and sweat! You're not going to let them make money and then have to eat coarse food? Who would be willing to work hard in that situation? They might as well just lie down!"

"But after they expanded, they became exploitative, and most of the villagers in Xiaowangzhuang stopped participating in frontline labor!"

Hu Zhenhua was so angry that he laughed and said coldly,

"When it comes to exploitation, the biggest exploiting class is the state! The people work so hard to grow crops, why should they pay you taxes? Xiaowangzhuang makes money and employs workers, but you also have to see that the sugar factory pays a lot of taxes to the state and provides a lot of jobs! After the villagers of Xiaowangzhuang make money, they build houses and spend money, which in turn stimulates the economy! I don't know how many people have benefited from this! I don't understand why you can't stand seeing others get rich first!"

"People have different insights, experiences, knowledge reserves, and opportunities. Some people will inevitably become rich first. If a country does not have this vision, then there should be no industrial development and everyone should just farm!"

Guan Tianpei laughed and said,

"The problem objectively exists! We must face it squarely. If someone with ulterior motives raises it first, it will probably cause enormous damage!"

Hu Zhenhua also realized that his emotions were a little out of control. He waved his hand and said,

"Chongming County has already implemented a personal income tax. You can learn from this policy. Using taxation as a tool to regulate redistribution is also an important part of the socialist market economy. Some people are incompetent and just like to gossip. These people are pure troublemakers in socialist economic development!"

Guan Tianpei clapped his hands.

"Let's say you have a solution. Back to the question just now, I don't think private capital can be completely categorized as public ownership, like individual businesses!"

Hu Zhenhua turned and walked to the blackboard and added a few words in front of private capital: collective economy!

Guan Tianpei laughed and said,

"That explains it!"