Primary Challenges Faced Currently

  • The economy has reached the peak of debt, and debt pressure is causing a reduction in personal income.
  • Individuals are cutting back on spending, directly leading to a decline in consumption.
  • Declining consumption leads to a decrease in corporate revenue.
  • Decreased corporate revenue leads to lower employee income and tax revenue.
  • Decreased investment willingness among individuals and corporations leads to a slump in the real estate market.
  • Land sales are sluggish, local finances are nearing bankruptcy, and in some regions, official salaries cannot be fully paid.

Historical Lessons

This situation is bound to lead to extreme change, which is unacceptable, so countermeasures must be taken. What is the goal of these countermeasures? Naturally, it is to maintain social stability, and on this point, everyone’s interests are unified.

Current Solutions

1. Monetary Policy Intervention

  • Quantitative Easing (QE): They can instruct the central bank to inject large-scale currency, increasing market liquidity. This practice can quickly raise asset prices, stimulate consumption, and create the illusion of economic prosperity.
  • Lowering Interest Rates: By lowering interest rates, encouraging individuals and corporations to borrow, promoting investment and consumption, thereby stimulating economic activity.

2. Fiscal Policy Stimulus

  • Increasing Government Spending: They can increase spending through government projects and infrastructure construction to create jobs and promote economic growth. This investment can yield quick results, strengthening public support for the government.
  • Tax Reduction: Reducing the tax burden in the short term, increasing consumers’ disposable income, stimulating consumption, and thereby promoting economic growth.

3. Market Manipulation

  • Stock Market Manipulation: Using various means (e.g., the central bank directly purchasing stocks) to boost the stock market, creating a wealth effect, making the middle class and asset-holders feel wealthy, thereby increasing consumption and investment.
  • Real Estate Market Stimulus: Lowering mortgage interest rates or providing housing subsidies to promote the recovery of the real estate market, thereby driving the development of related industries.

4. Information Manipulation

  • Propaganda and Public Opinion Control: Shaping a positive economic image through the propaganda machine, reducing public attention to economic problems, and enhancing public trust and support for the government.
  • Data Manipulation: Manipulating economic indicators and releasing optimistic economic data to create the illusion of economic prosperity.

5. Suppressing Social Dissatisfaction

  • Suppressing Dissent: By severely cracking down on protests and opposition groups, maintaining superficial social stability, and preventing the outbreak of social unrest and dissatisfaction.
  • Providing Short-Term Welfare: Offering short-term economic aid or subsidies to low-income groups to alleviate livelihood pressure and gain public support.

6. Increasing State Control

  • Nationalization or Control of Key Industries: By controlling critical economic sectors to achieve national interests and regime stability. This can help them better cope with crises during economic difficulties.

Conclusion Through these short-term or medium-term strategies, they can effectively maintain superficial prosperity and stability during the economic recession, strengthening their own foundation of rule.