Short-term downward pressure on China's economy, official media: it is worth studying direct payment to low- and middle-income residents
2022-05-17: [Article Link]
On the front page of the People’s Daily newspaper’s press "Victim Times" today (17), it is reported that various economic statistics have been published in April and that China’s economy is under much pressure in the short term.
According to the commentary, some of the cities in the interior have been active in the consumer market and can still be strengthened; a number of economists have suggested direct payments to low- and middle-income residents, which are worth serious research.
The comment post states that China’s economy is under more stress in the short term, with more robust bottom-up policies to stop the economic downturn in the short term, while creating a better environment to restore, as soon as possible, the confidence of market owners, including small and medium-sized enterprises, and to put the economy on the path to an early and sustained recovery. According to the article, the lack of effective demand remains the main contradiction in the past. While the negative increase in the gross amount of social retailing in April was due to the epidemic’s failure to realize the cost, it must not be overlooked that the population’s ability to consume is affected by real and projected levels of employment and wages. According to the article, in the previous period, some municipalities had been active in the consumer market by issuing consumer vouchers, which could still be increased, and a number of economists had suggested that money should be paid directly to low- and middle-income residents, which deserved serious study.
The article also argues that supporting MSMEs costs money, and that cities that are affected by the epidemic can consider using their experience to channel money directly to MSMEs, making it possible for most of them to survive the epidemic.
The article concludes by stating that the epidemic cannot be overstretched, and that it must be firmly determined to deploy in the center of the party, and that it must be scientific and normal. In some places, it has been added to the middle of the epidemic, and it has led to ‘earth policies’ that are contrary to central policy, hindering the movement of goods and people, and that these excessive measures have had a direct impact on consumption, investment, and, as a result, immediate economic activity in the area.