In recent years, both the United States and Europe have been facing the threat of high inflation.

Although the central banks of Europe and America have been continuously raising interest rates, the effects are not apparent.

Ultimately, this is the price Europe and America are paying for the excessive money printing in the past few years.

Some experts point out that China's situation is somewhat similar; in the past year, the money supply has increased by 31 trillion, and we may also face rising prices in the future.

However, what we should actually worry about is deflation, not inflation.

What is deflation?

We don't need to understand the economic definition; we can just look at the actual situation.

Taking Japan as a reference, prices have risen slowly for many years, incomes have hardly increased, and the public lacks the desire to consume.

They neither have children nor are willing to buy houses, and they are even reluctant to work.

The Japanese economy has been lost for 30 years, and the Bank of Japan has always made raising prices a primary goal.

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Comparing with Japan, we find that our situation in recent years is somewhat similar.

We all know that after three years of the pandemic, all countries in the world have been affected to varying degrees, and we are no exception.

Due to the uncertainties about the future, people's willingness to buy goods has decreased.

Some experts have said that the current standard of living in the country has improved, which is why people prefer to cook at home, which is healthier and more hygienic.

But in reality, the reluctance to dine out is because everyone wants to save money.

Since they can eat full at home, they choose to eat at home.

Such situations are everywhere, and the downgrade of consumption is an important reason for the decline in domestic consumer demand.

Looking at the consumer confidence index, we find that since April of last year, this index has fallen by nearly 30% year-on-year.

Even though it had already fallen at the beginning of last year and the base was low, by the beginning of this year, it still fell by 21% to 25% year-on-year.

Consumer confidence is related to expectations of future income.

In recent years, our country's employment rate has been on a downward trend, with countless people complaining about the difficulty of finding jobs and many people without work.

This situation is mainly due to the improvement in our country's cultural education level, and the overall cultural education level of the people has improved, so the cultural education level required for work has also improved.

It's like college graduates who find it difficult to find a job.

In addition, with the development of our country's scientific and technological technology, it has also had an impact on some industries, such as artificial intelligence, which has reduced the number of positions available in our country to a certain extent.

There have even been cases where the number of bank staff has been greatly reduced due to intelligentization.

Working in a bank used to be a golden job, but now it can be lost at any time.

It is precisely because of these reasons that our social consumer goods retail total data has not been optimistic since the second half of last year, especially in the fourth quarter of last year, with a negative growth year-on-year for three consecutive months.

However, fortunately, since the pandemic was relaxed, the cumulative sales volume in the first two months of this year finally increased by 3.5% year-on-year.

The current problem is how to stabilize this growth?

In fact, there is no doubt that deflation needs monetary stimulation, but we are not short of money.

In the past year, M2 has grown significantly, with a total increase of 31 trillion yuan.

The current problem is how to get the money into the hands of the people.

Only when the people have money in their hands are they willing to consume.

Only when the people feel that money can come to their hands will they have confidence in the future.

So much money has been issued, and most of it is still in the financial system, which is very likely to lead to a bubble in the virtual economy.

In addition, there is another point that is very worth noting: do not stimulate the economy by developing real estate.

Over the years, a large amount of money has gone into real estate, which has suppressed consumption.

Only when consumption truly increases will all industries prosper.