China's large enterprises must pay high dividends to the government every year. What if they do not have enough funds to develop? They will be listed.
That means these enterprises could have developed well, but they will use the profits to invest elsewhere. In the end, their profits are not as high as here. This is a loss.
This was equivalent to two people doing business together and exchanging shares. In the end, the other person's company did not make much money, while your company made a lot of money. Then, the other person left after making a lot of money, while you only made a little. Was this exchange worth it?
"Feng Yu, no. What you said is wrong. The development of the local economy and the construction of the people's livelihood required money, right? Our Central Government is responsible for planning and ensuring the development of the local government. Isn't it the same for all countries to collect taxes and allocate funds? Are we all wrong? "Zhang Ruiqiang shook his head. He felt what Feng Yu said is wrong.
"Then let me ask you. What are you all going to do with the automobile companies we acquired from overseas? Merge them into those state-owned automobile companies and force them to hand over a certain amount of profits every year, right? "
"Do you know why those state-owned automobile companies are not as developed as Bing City Machinery Manufacturing Group? It's because their investments in technologies are not as high as ours. They might be getting high dividends every year, but look at the company's development and profitability. Which company is more profitable? "
"Why must we allocate funds to those companies and force them to hand over a certain amount of profits? Why can't we invest directly?"
Invest directly? Zhang Ruiqiang is confused. What does Feng Yu mean?
Feng Yu continued to explain. "Look, the funds used by the state-owned enterprises to purchase those companies are used for pension funds, right? After that, they will be forced to hand over their profits and fill in the accounts. Why can't we treat these assets as investments for pension funds? "
"A company should develop in a healthy way. The amount of profits they can hand over is not how much you want. It depends on how much the company has left after deducting the most reasonable investments."
"Let me ask you. Will anyone object if the pension funds are invested in Bing City Machinery Manufacturing Group? Will anyone object if we invest in Lenovo Group? Or if we invest in Wahaha Group? Who will object? "
"Why don't we invest directly instead of handing over the profits after allocating funds? These investments will increase in value every year, and there are high dividends. Isn't this good? "
Zhang Ruiqiang hesitated. "But won't the state-owned investment companies have less cash?"
"What is the purpose of an investment company? Making money, right? So, instead of making such high-quality investments, you used the money to make some ordinary investments. Is this the right choice? "
"Who says that investing in a domestic enterprise must be wrong? Won't we be able to earn money from foreigners if we let our domestic enterprises go overseas? "
"Look at my companies. They were established in China, but now, which one of them is not expanding overseas? Look at those foreign companies. Which one of them doesn't manage their own base first before thinking about expanding? "
"What does it look like for you to invest abroad with such a large sum of money? It's like a child carrying a bag of cash to buy something. Although others know that robbing is illegal, it's still legal to trick you into spending money. You can still put the money into your own pocket."
Nowadays, many people think that if you don't invest your money, you can't earn money from foreigners. Isn't exporting money the same as earning money from foreigners?
You only thought about taking out money to invest and make money, but you neglected that your own family's money was being taken away by others. Isn't this putting the cart before the horse?
"What you said makes sense, but what's wrong with it? My mind is in a mess now. Let me think about it first. "
Feng Yu rejected some of the higher-ups' strategies with just a few words. Feng Yu cannot say that all the strategies developed by the higher-ups are wrong.
Feng Yu also knows that foreign investments are necessary. Sometimes, it can achieve some political goals, and at the same time, it can bring in huge economic benefits.
For example, some investments in Africa. Obviously, these investments will not bring in profits locally, but they can exchange for some African countries' votes to support Hua Xia in the United Nations. This will let Hua Xia get more benefits in other areas.
But investments must also be selective. If there is a better path, why should we take the rugged mountain road?
"You should think about this carefully. Our country's pension is increasing every year, and this is a reward to the people. This is also an effective way to strengthen the people's cohesion."
"Do you think with your investment methods, the money earned will be faster than the pension increase? There are many single children in our country now, and after two single children get married and have a child, the couple will have to support four elderly people and one child. "
"You are saying that the elderly people have pensions now? That's right. But did you notice a problem? Only these two elderly people are paying the pension, but there are four elderly people receiving the pension. That means the number of people receiving the pension is twice the number of people paying the pension, right?"
"Think about those state-owned enterprises in the past. Did they have similar problems? There are too many retirees, and the pension burden is too high. In the end, the enterprises collapsed. "
"Isn't that situation similar to what we are facing now? Our country's aging population is getting worse, and with the improvement of medical and sanitation technologies, people's lifespan is getting longer. That's why the pension period is getting longer, and the pension burden will get heavier. "
"What will you do when your expenses exceed your income?"
In the past, the enterprises were responsible for their retirees. Now, it is the government's social security, and the government will take care of these retirees' pension.
It is easy to solve a company's problem, but what about a country's problem? Is this something that can be solved with a little money? When that happens, the companies can stop paying the retirees' salaries and pensions. But can the government stop the retirees' pension payments? That will be a mess!
You said that the pension will not increase, but the prices of commodities had increased, and the pension will not be enough for the retirees. How can this work? If you let the working people contribute more to the pension, when they retire, you will have to give them more pension. This is a vicious cycle.
The most direct solution is to let the retired people earn more money. Every month, the pension paid by the government is a lot, and as long as the government invests the money reasonably, it will be enough to cover the expenses.
Relying on drawing blood from enterprises was no different from drinking poison to quench thirst. Sooner or later, these enterprises would collapse.
That's why the government cannot invest in pensions. It must invest in more profitable businesses!
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