Shao San: The need for price intervention needs state-owned enterprises

Since the second half of this year, the CPI has always been running high, high inflation, a variety of consumer goods and materials rose alarmingly, combined with the bank negative interest rate of the overall environment, urban and rural residents, especially the low and middle income group living costs seriously increased, the public for the price explosion accumulated resentment, for the central In this context, "the need to implement the price of temporary intervention measures", in fact, the first should be understood as a "Ammin". In other words, it is tantamount to telling the public that the central government not only knows and attaches great importance to the sufferings of the people's livelihood under the price inflation, but will not just ignore it and can do whatever it takes.　　Although some netizens have raised questions and concerns about what is "necessary", such emphasis is necessary to be cautious, otherwise it is likely to be abused, and the gains are worse. In a sense, the public should not have unrealistic illusions about the policy of price intervention. Notice that price intervention is not only a radical solution, but also a "double-edged sword." Not to be a last resort, excessive price intervention is undoubtedly a setback, its side effects and sequelae, has long been the conclusion of various economic textbooks.　　Even price intervention must be based on the knowledge and respect of market mechanism, and once the market mechanism is fundamentally destroyed, the result will inevitably escape into a vicious circle.　　For the policy of price intervention, I think it is necessary to emphasize two points: first, the monopoly state-owned enterprises, especially the central enterprise should assume the main social responsibility, to take the initiative to let go; second, to beware of easy to operate and easy to show the performance of the price intervention, the local government based on the In the previous point, the legitimacy of the monopoly of state-owned enterprises is to "protect the livelihood of the nation", then, in this respect for the livelihood of the inflation moment, should be the first state-owned enterprises to assume more social responsibility. On the one hand, artificial "oil shortage" forced palace price increase, natural gas prices, water prices, residential electricity prices must be stopped in time, and to investigate the relevant responsibility of the rise in the wind; On the other hand, unreasonable monopoly fees, such as fixed telephone monthly rent fees, should be cleaned or banned in large scope.　　State-owned enterprises to pay the share of the dividend should be significantly increased, and used to subsidize vulnerable groups. At the latter point, it should be recognized that local governments may have the potential to abuse price interventions, a move based on the government's own benefit rather than a genuine stance on safeguarding the livelihood of the people. For example, some places have introduced regulations, cabbage and other vegetables to limit the price, the results of the most injured is not others but vegetable growers, the original vulnerable groups of life is increasingly difficult. In spite of the underlying causes and components of price increases, the administrative qualification of a commodity's price seems to be effective, but only a blow to supply. For local governments, a brutal price intervention is probably the simplest and probably the most effective, but also the most damaging, when it comes to calming prices.