Mao Yushi: Workers' Salary Increase Is Conducive To Industrial Upgrading.

Enterprises pay a substantial increase to their employees. Some people worry that wages will rise so that China's comparative advantage will be gone.

According to experts from home and abroad, the productivity of Chinese workers has nearly doubled in the past decade, but their wages haven't increased much.

This is not that capitalists have intensified exploitation, but the role of market forces.

Labor supply exceeds demand and wages can not rise.

Now the situation is slowly changing, and there is a shortage of migrant workers. The market will shift to the direction conducive to the labor force, so there will be a pay rise.

This is the market changing.

It is indeed a fact that China will lose the advantage of low labor force.

But the way to deal with it is not to keep a low wage policy, but to upgrade the profession, reduce the use of the labor force, and raise the value of the added value of the enterprise by technology and innovation.

This is the only way for China to move to the developed countries.

One of the main components of structural adjustment we emphasize is upgrading of the industry.

Wage increases are helping to bring about this change.

A country has two important things in its economy, one is the production of wealth, the other is the distribution of wealth, that is, efficiency and fairness. There are two important things in a country.

If these two things are done well, there will be no big problems in the economy.

But efficiency and equity often have contradictions. If we want to increase production of wealth, we will ignore the equitable distribution of wealth.

In the past, we paid too much attention to the production of wealth and ignored the fairness of distribution.

Now the opportunity for correction is here.

Worrying about increasing wages and losing competitiveness is a deviation from efficiency.

Moreover, wage increases also have a positive effect on efficiency, because the increase in income of low-income people can expand consumption and help to balance the macro demand structure.

The proportion of consumption in macro demand is too low, which is related to the low wages of workers.