What does "supply-side reform" often mean?

The so-called supply-side reform refers to liberating productive forces and improving competitiveness from the supply side and the production side to promote economic development. For the supply-side reform, we mainly focus on strengthening the supply-side structural reform and improving the quality and efficiency of the supply system while moderately expanding the total demand. The main core of supply-side reform is to improve the productivity of enterprises, and strengthen the efficiency of enterprises by means of decentralization, deregulation, financial reform, state-owned enterprise reform, land reform and improving innovation ability. Specifically, it is necessary to clean up those enterprises that have no actual production, eliminate backward production capacity and develop potential industries. For those industries to be developed in the future, it is mainly to lock in some emerging and innovative industries and create new economic growth points by developing potential industries.

Promoting supply-side reform is a new idea to promote new economic growth. The main way is to promote economic development by improving social supply. Many people don't understand to some extent. According to the influence of supply and demand, if we want to promote economic development, then we must increase market demand, increase market supply through the increase of demand, and then promote economic development.

The supply-side reform is not based on this idea, but on the supply side. The supplier thinks that the market demand can be automatically adjusted by the market, and it is not necessary to increase the market demand through demand stimulation. If we want to stimulate economic growth, then we must improve the production capacity and efficiency of the supply side, that is, we must improve the total factor productivity. By adjusting the production capacity structure, eliminating those backward production capacity, digesting the inventory of real estate and reducing the operating costs of enterprises, we can improve the business capacity of the supply side.

Supply-side reform is an important means for the country to develop a new round of economy. We should fully understand the benefits of supply-side reform and implement it firmly.

Hello, I'm Lao Xu, a struggling financial worker. Please pay attention to me and discuss financial issues together!