The reasons behind the pursuit of low prices! See through the essence!

In addition to comparing the CPI on a year-on-year and month-on-month basis in the time dimension, it is also necessary to compare prices in space, that is, the domestic price level with the international price level. For example, the consumption level in general large cities is high, and the consumption level in rural areas is low, which is the spatial distribution of prices.
On the surface, the difference in price levels lies in local incomes, but more importantly, an environment with lower price levels is more conducive to the rapid accumulation of capital by backward economies through savings. Therefore, for developing countries with a strong desire to catch up with developed economies, they will inevitably tend to control the income and labor surplus of residents in order to achieve rapid accumulation of original capital.
We often say that development can cover up all problems, but without eternal development, there is an economic cycle. Suppressed residents' income and domestic demand often erupt in the counter-cyclical period. If the government continues to maintain the investment-driven economic approach at this time, it will suffer greatly because the transmission chain of money is too long. It is more reasonable to exert more effort in guaranteeing people's livelihoods, such as increasing the pension and medical treatment for non-institutionalized groups, extending the duration and amount of youth unemployment relief payments, and stabilizing asset prices through the repurchase of special bonds to auction and build long-term rental housing.