Chapter 414 Market Economy
Xu Xi believes that we should adhere to the general principle of seeking progress while maintaining stability, take into account the current complex and volatile macroeconomic market environment, coordinate development and security, speed and quality, and the present and the future, scientifically and rationally grasp the pace of economic growth, appropriately slow down the expected growth rate, slow down the pace of progress, and avoid blindly pursuing high targets and high speeds.
However, Xu Nian believes that the current local fiscal surplus should be closely aligned with the overall development of the city. The government should resolutely expand incremental growth, accelerate development, and strengthen momentum, firmly abandoning any conservative or timid mentality, and promoting faster and more efficient economic growth with greater力度 and more concrete measures. Policies should be introduced to encourage capital to build new factories, increase employment and income, boost demand, and increase GDP. At the same time, government intervention should be reduced, and free development of enterprises should be encouraged.
Xu Xi disagrees with this view. She believes that in order to effectively strengthen the government's regulatory functions and resolutely shoulder the political responsibility of regulating market order, it is necessary to strictly strengthen the constraints and regulations on capital behavior and resolutely prevent the disorderly expansion and unbridled growth of capital.
Before she could finish expressing her opinion, Xu Nian had already used the "big hand of capital" to carry out large-scale "infrastructure construction" on the "high mountains of Huomiao City". Through "precise point-to-point investment", she promoted the development of the dairy industry in the two key ranch areas on the high mountains, increased "production", and rapidly increased the "total demand for dairy products in Huomiao City", achieving rapid GDP growth.
At the same time, Xu Nian also extended the "capital stick" to the "remote areas downstream of Huomiao City," lobbying local "government officials" to strongly support and guide "capital" to quickly enter the market and deeply integrate into the industry, using "capital vitality" to drive investment growth. Adhering to a market-oriented approach, breaking down unreasonable barriers, optimizing the business environment, and truly allowing "social capital" to enter and attracting high-quality resources, the "large-scale flow of capital" will drive a large-scale economic cycle and development.
However, these aggressive actions inevitably created some "inflated" and "bubbly" market conditions in Firefly City.
Meanwhile, against the backdrop of "large-scale investment concentration and accelerated flow of capital," the "labor market in Flame City" is experiencing structural imbalances, with some sectors showing signs of overheating. This is causing great distress to Xu Xi, the mayor of Flame City.
To this end, Xu Xi explicitly demanded that all types of "market entities" scientifically grasp the pace of development, appropriately slow down the pace of expansion, appropriately reduce speed and cool down, take a break and adjust, fully take into account "people's livelihood demands" and "people's personal feelings", and take into account the speed of development and social carrying capacity.
However, driven by profit, "capital entities" represented by Xu Nian ignored relevant guidance. Not only did they fail to implement "government requirements," they continued to increase "investment," directly leading to the continuous accumulation of "market bubbles" and the amplification of "false information," pushing the overall operational risks to the brink of spiraling out of control.
Ultimately, Xu Xi realized that traditional "government macro-control measures" were no longer suitable for the current complex situation of "overheated market and unbalanced demand".
In order to effectively counteract contradictions and stabilize the overall development, Xu Xi was forced to comprehensively deepen market-oriented reforms, orderly promote the process of market liberalization, implement tight financial policies, devalue the currency, reduce labor costs, and satisfy the massive influx of "cash" from "capital enterprises" represented by Xu Nian, quickly filling the "market".
Under the "government's permissive policy," Xu Nian promoted a more aggressive "expansion strategy." The tax revenue continued to be collected and deposited into the treasury, effectively clearing up the tax arrears accumulated over the years, making up for the long-standing tax shortfall, achieving a complete clearing of historical tax arrears, standardizing and balancing fiscal accounts, and fundamentally streamlining the city's fiscal and tax operation order.
However, such a permissive policy led to the concentrated release of the "inflated market prices" and "bubble risks" accumulated in the early stages of the market, causing the market's economic operation to show a "shock" state.
When Xu Xi was assessing the effectiveness of the relevant policies, he discovered that the regulatory direction was seriously deviating from the expected goals and the actual effect was completely opposite. He suddenly felt unwell on the spot and fainted.
Subsequently, market capital, represented by Xu Nian, finally broke free from multiple constraints, achieving comprehensive free expansion and disorderly, extensive development, completely entering a state of laissez-faire, with its profit-seeking nature fully exposed, and its operation trending out of control...
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