Summary of Key Points
This article focuses on the issue of a dysfunctional consumer cycle, arguing that the core contradiction in the current economy is not a lack of funds for consumption, but rather a blockage in the wealth flow mechanism: wealthy individuals (such as tech tycoons) have low spending intentions, luxury goods have lost their class symbolic value, cultural offerings fail to meet demand, and wealth flows unidirectionally towards top-tier companies without being able to circulate back. The article proposes solutions including encouraging tech companies to engage in disorderly innovation (which can still lead to money circulation even if it fails), reforming the cultural supply side, and stimulating what the author calls the "animal spirit" (to motivate wealthy people to spend).
1. Tech Tycoons with Money but No Spending: Rational Consumption Hinders the Economy
The article begins with an example of a tech mogul worth tens of millions who still uses shared bicycles and eats at restaurants that cost an average of 150 yuan per person, with new spending accounting for only 0.3% of their wealth. In contrast to real estate developers of the past (like Mr. Xu, who invested in dance troupes), the spending habits of tech tycoons are considered too rational—but rationality is not necessarily good for the economy. Why? Because the essence of consumption is to circulate money: the money you spend becomes someone else's income, which then gets spent again, creating a cycle. Tech tycoons, by not spending their money, are effectively saving it, preventing it from entering the social circulation. The article jokes that "their consumption value might be less than that of their dogs," as even dogs need food and grooming, while tech tycoons don't even replace their cars, keeping the money within their own hands.
2. Young People Losing Interest in Luxury Goods: Weakening Class Consciousness Slows Down Wealth Flow
The article uses the example of Hong Kong domestic workers to illustrate this point: mainland Chinese housewives may feel equal to their employers, but the workers believe that being polite means they are of the same class, so they need to be more assertive to be taken seriously. This reflects a shift in consumer behavior where young people no longer value the class symbolic aspect of luxury goods—carrying a LV bag is as meaningless as carrying a cloth bag, and owning a Patek Philippe watch is no longer considered impressive. Luxury goods were originally meant for showing off wealth; when wealthy people buy expensive items, money flows to brands, manufacturers, and retailers, facilitating wealth transfer. However, young people no longer find this appealing, and the emotional value of luxury goods has diminished, with more emphasis on cost-effectiveness. As a result, wealthy people are reluctant to buy luxury goods, and the money remains stagnant.
3. Cultural Supply Side Stagnation: Good Content Is Hard to Access, Bad Content Goes Unnoticed
The article mentions how concert tickets sell out quickly, movies like "Nezha" gross billions, and rural supermarkets are popular, yet many actors have no roles and directors complain about a lack of market opportunities. The problem lies in the solidification of circles within the cultural supply side: established practitioners control resources, preventing new content from emerging. Spiritual consumption (as opposed to physical goods) is now the main demand, but the supply falls short—either there are poor-quality films and shows or too few high-quality offerings. People want to spend money but have nowhere to do so, leading to a stagnant cycle. The article laments that "the sugar cane isn't sweet on both ends"; while weaker class consciousness is a positive trend, it is detrimental for consumption.
4. Wealth Accumulates in the Top: Money Goes to Big Companies but Doesn't Circulate
The article points out that wealth is increasingly concentrated in large companies and licensed infrastructure firms. These companies either save their profits or invest them recklessly (which was previously criticized as disorderly expansion). Now, big companies are hesitant to invest, keeping the money within their own systems. How to solve this? The article suggests encouraging tech companies to innovate boldly, even if it means failure, as the investment can create jobs and supplier income, thus reinvigorating the cycle. For example, if a tech company invests 10 billion in innovative projects, whether successful or not, employees will spend their wages, and hardware manufacturers will expand production, thereby restarting the money flow.
5. Stimulating the "Animal Spirit": Motivating Wealthy People to Spend
The article offers several suggestions to break this cycle:
1. Encourage Childbirth: Allow wealthy people to show off their children; spending on children is better than saving.
2. Attract Foreign Residents: Promote intermarriage with foreigners to bring in consumption and vitality.
3. Liberate Certain Forms of Consumption: Permit certain forms of spending (such as live streaming tips) to stimulate desire.
4. Innovate in Consumption Formats: For example, create tax apps that offer different skin tones as rewards for higher taxes—paying 1 million for a dark skin tone and 5 million for a golden one.
The core idea is to provide wealthy people with opportunities and incentives to spend money, thereby restarting the wealth flow. The article argues that distributing consumption vouchers is ineffective, as the money ultimately ends up in the hands of entrepreneurs like Jack Ma and Pony Ma, who may not spend it if not prompted to do so. It's better to encourage them to invest in innovation, show off their children, or purchase such tax-based rewards.
Conclusion
The article concludes that the root cause of the dysfunctional consumer cycle is a problem with the wealth flow mechanism, not a lack of funds. The solution lies in motivating wealthy people to spend, ensuring money circulates (through innovation and investment), and providing them with valid reasons to do so (through cultural reforms). Only when money starts circulating again can the economy thrive.