In 2018, environmental protection became increasingly strict, and a new round of environmental protection "looking back" began! Recently, Jiangsu and Guangdong have been continuously rectifying and shutting down thousands of businesses. Why are environmental inspections so strict? Someone has revealed the truth!
Environmental protection has become increasingly strict this year, causing many companies to shut down, suspend production, reduce production, complain everywhere, cry and howl. Many small business owners have gone bankrupt overnight, and local governments are also facing numerous contradictions. The implementation of environmental protection measures has directly affected GDP, tax revenue, employment, and may also bring about social instability.
Why does the central government still strike hard and do so? The surface reason is to improve the environment, give the people a blue sky, clear river water, and clean air. Of course, this is one aspect of the reason, but it is not the main one. The main reasons I believe are as follows:
Why does the central government still strike hard and do so? The surface reason is to improve the environment, give the people a blue sky, clear river water, and clean air. Of course, this is one aspect of the reason, but it is not the main one. The main reasons I believe are as follows:
Reason 1: Eliminate the disruptors of economic development - dirty, disorderly, and irregular enterprises.
In the early stages of reform and opening up, this type of enterprise undoubtedly played a great role in economic development, solving a lot of employment, contributing a lot of taxes, and also contributing a lot of GDP. Today, domestic enterprises need to transform and upgrade, otherwise they will have no competitiveness in the entire international market.
But transformation and upgrading require enterprises to invest a lot of funds, where do these funds come from? Do we rely on borrowing? Lending is only a temporary solution, and ultimately, companies need to have substantial profits to promote transformation and upgrading. However, the current situation is that the profits of the entire production-oriented enterprise are not high, mainly due to low sales prices.
Why is the selling price of the product not high and the profit is very low? Mainly because there are numerous market disruptors. A legitimate enterprise needs to pay taxes, invest in high environmental protection equipment costs, provide full insurance to employees, incur high research and development costs, maintain a good working environment, and pay for safe work. In order to ensure product quality and services, there are also expensive management fees, so the cost of a legitimate enterprise is very high.
An informal enterprise or workshop does not have these expenses at all, even if they do, they are pitiful. Such enterprises have much lower costs compared to regular enterprises, so they can obtain sales at low prices. In order to obtain sales, regular enterprises can only lower prices, which leads to the phenomenon of low sales prices and low profits for regular enterprises. So this phenomenon is extremely unfair to legitimate enterprises. So formal enterprises will also try their best to reduce operating costs, leading to situations such as tax avoidance, not using environmentally friendly equipment, etc. They will also try their best to reduce raw material costs and management costs, because only in this way can formal enterprises have room for survival.
Therefore, in the current stage of economic development, the central government is also helpless and must cut down those informal enterprises or gradually transform all enterprises into formal ones, while also eliminating some excess and backward production capacity. Only in this way can the company's profits be increased, allowing more funds to be invested in research and development, transformation and upgrading, and providing more benefits to employees. Only in this way can the entire domestic economy enter a virtuous cycle. Let our enterprise have true competitiveness in the entire international market.
Reason 2: Improve the employment environment of the enterprise.
For all enterprises, the most scarce thing is talent. Cultivating a good talent requires many years of time, various types of training, and a large amount of investment. However, often after talent is cultivated, it is poached by other small enterprises with high salaries. Because small enterprises do not invest a lot of time and cost in talent cultivation, poaching is the simplest, fastest, and lowest cost method. This also leads to formal enterprises being unwilling to cultivate more talents, which is an extremely unfair phenomenon.
For employers, everyone feels that employees nowadays are restless, prone to emotional turmoil, and even if they don't leave, they are unwilling to work hard, making it increasingly difficult to manage them. Why does this phenomenon occur? Mainly because there are too many informal enterprises in society, I can find jobs everywhere when I leave here.
So in order to change this phenomenon, the central government can only reluctantly handle it, reduce the number of informal enterprises, and change the phenomenon of talent loss and deficiency. Although dealing with many informal enterprises also reduces employment opportunities and may bring local unrest to society, this is also an inevitable solution because only in this way can enterprises focus on cultivating more talents, making their employees less restless, and the economy achieve better and healthier development. Just like in the War of Liberation, it is necessary for many people to sacrifice in order to establish a new China, and in order to establish a good and healthy market economy environment, one can only endure this kind of pain.
Reason three: Effectively increasing the government's fiscal revenue.
Why did local governments in previous years mainly obtain fiscal revenue through land sales? Due to the government's lack of money and income, selling land can quickly generate more fiscal revenue, thereby pushing housing prices to astronomical numbers, making it difficult for people to afford houses, and causing the entire society to invest in profit-making from real estate speculation. On the other hand, it is also wiping out the real economy.
So from now on, only by standardizing all enterprises and ensuring that everyone pays taxes without evading taxes, can the government's fiscal revenue be high and there is no need to rely on selling land to obtain fiscal revenue subsidies. The government can better stabilize society and truly serve enterprises and the people.
For enterprises, if all enterprises are legitimate, then everyone's costs will be similar, and there will be no phenomena such as tax evasion, tax avoidance, and tax evasion. Business owners can also focus all their energy on the true development of the enterprise, without having to live a life of fear or use their brains. For consumers, they won't buy those unscrupulous products anymore.
Recently, there have been many complaints online about the current focus on environmental protection. It is also strange that the central government is vigorously developing the real economy while working hard to promote environmental protection and shut down enterprises. In fact, this is not contradictory. What the central government wants in the future is enterprises that are "responsible, responsible, and conscientious", rather than enterprises that make money without conscience for their own interests. For enterprises that do not have conscience, there will definitely be no room for survival in the future society.
So we need to take a deeper look at things, not just see the negative side, but also see more positive aspects. Long term pain is better than short term pain. We need to support the government's work, and no matter what, the central government always hopes that the people can live a good life, have a good natural environment, and a good economic environment.
What is everyone's opinion on this? Welcome to leave a comment at the end of the article for discussion!
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