Raise the living standards of poor people

Tom Lehman uswa12 at lorainccc.edu
Mon Jul 6 12:20:13 PDT 1998

Dear Ju-chang He,

Attaboy!(American idiom for good job). Always remember the old American saying, " one, Oh!Shit!, wipes out one thousand attaboys!"

On your first essay about market regulation, points 3 and 4 are non-productive spending and should be limited to necessity, maybe 1% of GDP. On point 5 what little I know of China---you need expressways like you need another hole in the head. Take a look at electric light rail systems for interurban transportation and commuting to work. Cars are fun; Americans would probably use them a lot less if we had not scrapped our electric light rail systems in this country. That's an American story you should look into. Sincerely, Thomas Lehman chang wrote:

> What should we do to raise the living standards of poor people?
> Consumption and demand can be divided into four grades. The first grade
> is necessary consumption of clothing, food, housing and transportation.
> The second grade is ordinary consumption, which means buying some more
> clothes and purchasing TV sets and washers, etc. The third grade is
> extravagant consumption, which means going to hotel and restaurants,
> taking cars and going to dancing-halls, etc. The fourth grade is
> over-extravagant consumption.
> Today, there is still a numerous unemployed army in the world, who is
> living a miserable life. And there are still quite a lot of people whose
> living standards are very low. They even fail to reach the necessary
> consuming level of the first grade and are also leading a very hard
> life, just like the unemployed people. Therefore, I think any country
> should set up a project of relief fund. According to the scientific and
> technical production levels of the present world, it is completely
> feasible for a country to grant relief fund, and this should be done.
> What should we do to raise the living standards of poor people? I think
> the following steps should be taken:
> 1. The government should carry out market regulation, urging the market
> to produce sufficient necessary consumer goods of the first grade to
> meet poor people's needs for necessary consumes goods of the first
> website:<http://www.geocities.com/WallStreet/Exchange/3058/marketaa.html>
> has had a detailed exposition on how to carry out market regulation.
> 2. The government should increase the taxes of the consumer goods of the
> third and the fourth grades and make use of this money to grant relief
> fund.
> 3. If this money is not sufficient for the needs of relief fund, the
> government should carry out the policy of financing deficits,
> instructing the central bank to issue more paper money to solve the
> difficulty of relief fund. The number of the issued more paper money may
> be enormous. For instance, at the beginning of 1980s, the yearly
> financing deficits of the USA is over 100000 million dollars, the
> increase of paper money will undoubtedly give rise to inflation, but
> inflation is no excuse for government's refusing to grant relief fund.
> Is there any country that has got no inflation?
> 4. The government should make laws to fix a minimum wage level in
> accordance with the economic situation of the country and make it clear
> that the wages of all the workers oughtn't to be lower than this level.
> 5. When poor people can't afford to buy their houses, the government
> should offer money from taxes or increased paper money to build a large
> number of houses every year and rents them to poor people charge-free or
> at a low price, thus making every family possess a house of 25-35 square
> metres so as to meet poor people's lowest housing needs.
> 6. When poor people have relief fund in hand, their consuming capacity
> will be improved, leading to an increase in the social needs for
> necessary consumer goods of the first grade and, as a result, the
> profits of enterprises producing consumer goods of the first grade will
> increase, too. In this way, more and more people will invest in the
> production of necessary consumer goods of the first grade. With more
> investment, there will be less unemployment, which is the truth.
> 7. With relief fund in hand, poor people won't stay home with nothing to
> do, for it is really unbearable for one to have no thing to do all day
> long. They are sure to work with jobs offered and reasonable wages.
> 8. If the government of a country fails to take measures to raise the
> living standards of poor people and compel them to improve their living
> standards all by themselves, they will unavoidably commit crimes,
> resulting in a rise in the criminal rate. I think any government and its
> people won't expect a rise in the criminal rate of their own country.
> Nowadays, most countries all over the world use Harrod-Domar Growth
> Model to judge the economic growth of a certain country and, according
> to this model, calculate this country's economic growth rate. This
> method of calculation is really unfair for poor people, for it fails to
> judge whether the poor people's living standards have been raised. For
> example, the yearly economic growth rate of China has reached 9-10
> percent, but the poor people's living standards of China haven't been
> raised. There are still a lot of people suffering from cold and hunger.
> They can't afford to send their children to school, and, as a result,
> too many children are deprived of education. Therefore, a new economic
> theory is badly needed to judge a country's economic growth. My article
> website:<http://www.geocities.com/WallStreet/Exchange/3058/development.htm>
> has established a set of complete economic theories and also a new model
> of economic growth, by means of which we will be able to judge a
> country's economic growth accurately and fairly.
> --
> Ju-chang He
> E-mail address: <chang at public.shenzhen.cngb.com>
> Welcome to visit My Home Page at
> <http://www.geocities.com/WallStreet/Exchange/3058/>

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