To understand the demand-side reform, we must first understand what the supply-side reform is. The supply-side reform was put forward in 2015 at the 12th meeting of the Central Finance and Economics. Allocate, eliminate outdated production capacity and inventory, guide production capacity to match terminal demand, and then special database optimize the production structure of the enterprise, improve the profitability of the enterprise, and reduce the leverage level.
The main reason for the implementation of supply-side reform is that, since 2011, with the emergence of the Lewis turning point, my country's labor costs have risen significantly; at the same time, the long-term growth model that relies on special database investment and external demand has caused my country's resource attenuation and environmental pollution problems. More and more serious, China's economy is facing new problems of shifting growth and structural imbalance. 2. Demand-side reforms Demand-side reform is a mirror of supply-side reform.
Demand-side reform is mainly to solve the structural problem of insufficient effective demand, thereby enhancing consumption capacity; however, to solve the problem of low consumption capacity in my country, a systematic analysis must be made of “no money for consumption”. ” or the fundamental contradiction of “the rich do not want to consume”; after the great achievements in the supply-side reform, my country’s production capacity special database has been greatly improved, but whether consumption can keep up, this is the biggest problem facing us . 3. The relationship between supply side and demand side A complete economic cycle includes four links: production, distribution, circulation, and consumption, while the supply side and the demand side correspond to the start and end points of the cycle.