Explore the possible causes of economic depression

First, the first "killer" that caused the current economic depression is price transparency in information convenience!

The price is originally a business secret of the merchant. Confidentiality means that it must be protected and cannot be leaked. The maintenance of such confidentiality may cause the ambiguity of price information and may create profit margins. However, with the current C2C platform, the price after the competition is directly priced online, and other buyers of the factory use this price to suppress the factory, making the factory unprofitable. The business of physical stores is getting worse, and the streets are deserted and the flow of people cannot be sold in one day. The high rent and labor costs make the physical stores unable to make ends meet, and they have to accept the fact that they are at a loss and start to close the store. Whether it is a factory or a physical store, the price transparency is the worst victim, and it is easy to find the price due to the status quo of the Internet. We know a law of "no fish when the water is clear, no disciple when people are observant", and "no profit when the price is clear". A society where all walks of life are unprofitable will inevitably lead to the inability of stable economic growth and violate capital. The law of profit-seeking. Even if people have a higher demand for their private spirit, they dare not consume, because most people see this economic downturn and are prepared to act as a defense line on the most basic survival, self-preservation, so their private spirit expands and shrinks. Protecting strategies and generating pessimism, rich people dare not invest, and companies that particularly have resource channels or innovative high-tech companies may get better and better, and the industry will form monopolistic growth.

The environment is so difficult, how should the business be done? The answer is that the author mentioned in this article a thinking in innovation-reverse. Assume that it is not easy to do business in a place where information is convenient and price is transparent. Reverse! The place where information is inconvenient and the price is vague is a good place and market for doing business to generate profit! From this, you can see that the places where business creates wealth all over the world or regions are places where information is blocked and relatively backward. As we know, South Asia, some countries in Latin America, and most of Africa are relatively good places for business.

Second, the second "killer" of the current economic depression is the closed loop caused by the limitations and narrowness of currency circulation.

Why does the economic development of all countries in the world eventually flow to large and competitive companies, such as real estate, finance, high-tech, and Internet companies? For a country, the development of science and technology and large industries is conducive to the country's development and international competitiveness, but for the country, it does not necessarily benefit most people and small and medium-sized enterprises. When the crowds competed, after a period of fighting, various small and medium-sized enterprises formed giant enterprises after the market was rushed. They gradually controlled the industry to become the industry leader, with strong funds or strong R&D capabilities, and a few hundreds of thousands of R&D personnel. There are tens of thousands of R&D teams, and no one can compete with them. Most companies in the same industry close their doors or make detailed divisional products. Large companies have developed sophisticated public spiritual products for human private spiritual needs. Everyone loves them, so everyone buys them. Therefore, the money in people’s hands is consumed in these large companies, and the funds go to large companies. Go inside. These companies, such as financial real estate, Internet, and high-tech industries, distribute salary to employees, pay taxes, and distribute currency to the country. The country has social management and development costs, so the money is distributed to education, poverty alleviation, social governance, government management, and the military. , National R&D and other departments. Compared with the population of the entire country, the people who benefit from these income distributions are a minority, and most people obtain income through other industries and industries, and then consume the products of these large companies.

If there are not many other industries and industries, most people will not be able to get income, but consumption still has to be maintained, so the money in their hands will become less and less and poorer. However, large companies, because of the resources, channels, and technological strength that ordinary people can’t shake, and maintain their wealth and income, will become richer and richer. This is the closed loop caused by the limitations and narrowness of national currency circulation. This may be developed in the West. It is an important reason why the gap between the rich and the poor in the country is increasing.

Third: The anti-social nature of the Internet is also one of the reasons for the economic downturn.

We have to discuss again the issue of the unity of opposites in philosophy, the two sides of things, pros and cons, everything can't be passed, and after that, it will change its nature. For example, how convenient the Internet makes life, work and learning for human beings, and the easy access to information, is right to develop it, but at the same time, it also has its faults. In addition to the price in the commercial system cannot be transparent, the Internet has already made it too rich in information or media. Most people are dependent and mentally fettered, and they can stay behind closed doors for a whole day or several days. Such a result may be anti-human society. Sociality is manifested in the relationship between people. People need to contact to produce various social relationships, such as friendship, love, relatives, colleague, leader and led. There is also a very important business relationship in the social economy. More contact between people can produce more business relationships. It is the foundation of social and economic development. It is difficult to create business relationships if people stay behind closed doors.