The general law of social and economic development deduced based on human nature and rationality

It can be as small as individuals and companies creating wealth, as large as a country. To create economic value, the first step is the production of goods or services by the people, and the second step is that the products need to be exchanged. Today, it is purchased with money. Value can only be generated after the completion of the two steps. If the product produced is not bought by anyone and exchange is not realized, value cannot be generated. The surplus of products in a company will lead to a backlog of inventories and stagnant capital flows, which will cause factories to shrink or go bankrupt and liquidate, and employees will lose their jobs. If a large number of enterprises fail in society, a large number of unemployed people will be produced in the society, and the economic income of the unemployed will decrease, which will lead to a decline in purchasing power and reduce consumption behavior. Hard to sell, this is a vicious circle. At present, Chinese companies have generally established a strong awareness that everything should be market or customer-centric, and then arrange R&D and planned production, instead of the past seller’s market era, blindly producing goods first. Think of a way to sell. In theory, there is no unsellable product in the world, but the people who need it are not found. The development of the Internet, B2B, B2C has opened up sales channels for this inventory backlog problem, in order to avoid such problems The occurrence of has played a very good role.

What can a country or region do to keep the economy going smoothly and vigorously?

The author judges according to the law of benign development of human nature, for your reference, that is: industries and industries that require the country or region to use science, technology, culture and information power to continuously innovate, research, and explore, and meet the human private spiritual needs of the development of the times, because Only by satisfying people’s private spirit can they be sold products or services that can generate actual exchange value. The more new industries in a country and region, the more talents and labor are in demand, and most citizens will have corresponding income. If you have income, you are willing to consume, and your consumption power is strong, which in turn stimulates the prosperity and development of other industries and industries. When a dazzling array of humanity products are on the market, everyone wants to buy, and the people need money. This kind of earning money The desire to drive people to use physical actions to work, serve others, or to start a business and create wealth. The creation of wealth is the country. Enterprises or individuals must use the power of science, technology, culture and information to continuously innovate, research, develop, and develop industries and industries that meet the needs of human private spirit... Repeatedly and virtuously. Therefore, science, technology, culture and information innovation thinking are so important, that is the starting point for people or the country to become strong, and for science and technology to flourish, it must rely on school education and training related talents, or the country's use of policies to recruit international talents. Innovative talents, a country's innovative talents are the country's largest strategic resource! Of course, this kind of virtuous circle is a kind of theory and road, but the actual operation is not that easy, and problems may occur in every link. You can try to use this conclusion to roughly diagnose the economic situation of any country or region.