Chapter 191: Discussing Reform (Part 2)

Du Zhongyuan was clearly scolding Zhou Ming for being slick. In fact, Zhou Ming was indeed being slick; when he realized he had spoken too much and entered a sensitive topic, he immediately backtracked, saying his perspective was narrow and that he could only think of so much.

As the Vice President of the country, Du Zhongyuan would certainly recognize that this was a deliberate retreat, not wishing to continue on that topic. After all, what Zhou Ming had just said was not something a narrow-minded person could come up with; someone who could speak in such a way must have a perspective at least at the level of national leaders.

However, now that Zhou Ming wanted to skip this topic, Du Zhongyuan could understand. After all, he was just an ordinary person without the backing of a big family. Once caught up in the political whirlpool, his only options were to be crushed or become a scapegoat, with no chance of a clean escape.

To be able to stop abruptly at a crucial moment and maintain such calm in front of the Vice President, this person was definitely not simple. To use a clichéd phrase: this person would definitely achieve great things in the future!

This might sound cliché, but to Du Zhongyuan, it was the best evaluation of Zhou Ming at the moment.

Zhou Ming chuckled, not taking Du Zhongyuan's scolding too seriously. Du Zhongyuan, of course, would not dwell on the issue. Since Zhou Ming did not want to interfere in politics, Du Zhongyuan would cooperate and move on.

Du Zhongyuan thought for a moment and said to Zhou Ming, "I understand that you have concerns, which is normal. I won't say anything about that. However, I hope you can take the following question seriously."

From Du Zhongyuan's serious tone, Zhou Ming sensed something and straightened up. Du Zhongyuan continued, "As a businessman, I assume you've noticed a strange phenomenon in our country. The prices of agricultural and primary industrial products have always been low. The central government now hopes to adjust this situation. What are your views on this issue of commodity prices?"

Indeed, getting into Zhongnanhai's doors was not easy!

Zhou Ming sighed inwardly. The issue Du Zhongyuan raised was a troubling one, involving many aspects, even touching upon sensitive political issues from the past, present, and future. A poor answer could lead to problems.

After careful consideration, Zhou Ming replied, "Both excessively low and high prices are problematic. But the key is in how these prices are formed—whether they are caused by the market or artificially suppressed. If it's the former, then with some guidance, the market can adjust itself. If it's the latter, the situation is much more complicated."

Du Zhongyuan nodded, "The situation is such that while the purchase price of grain is high, the selling price is low, so the state needs to provide subsidies. Economically, this is unreasonable and doesn't follow economic laws. However, our country has a low-wage system. If the state doesn't provide subsidies and allows prices to rise, the public won't be able to afford goods. If we were to increase wages on a large scale, there's a concern it could lead to inflation. So, this is a dilemma."

Was this the backdrop of the first round of price adjustments at the end of the 1980s? If Du Zhongyuan described it this way, then the issue of prices was indeed a very difficult problem.

Thinking this, Zhou Ming did not give a direct answer at first but asked, "Chairman Du, what is the central government's current decision?"

"Currently, Chairman Dong has decided to use a combination of active price increases and wage hikes to carry out price and wage reforms," Du Zhongyuan answered.

"That won't work! It will definitely cause chaos!" Zhou Ming immediately disagreed.

Du Zhongyuan asked why, and Zhou Ming analyzed, "It's simple. If an ordinary person knows that prices will rise tomorrow, what will they do today? They'll buy up everything they need while prices are low. This might not be a problem for one or two people, but if hundreds of millions of people nationwide do this, it will lead to a buying frenzy. Isn't that likely to cause problems?"

"Moreover, a nationwide price increase will lead to serious inflation, making people's savings in banks worth less. Once people realize that ten yuan they saved yesterday can only buy five yuan worth of goods today, what will happen? People will definitely rush to withdraw their money, leading to a collapse of national credit, a breakdown of the financial system, and social unrest." Zhou Ming added, "This has been proven abroad countless times. Every financial crisis basically includes this scenario."

"Then, what if we let banks raise interest rates to keep up with inflation?" Du Zhongyuan asked again.

"That won't work either!" Zhou Ming said firmly, "If we simply print more money, it's not just raising prices; it's creating inflation artificially. It's similar to the currency and gold bonds issued in our country after World War II. It only serves to plunder the people's wealth and make ordinary people's lives more difficult."

Zhou Ming spoke with emotion, as it reminded him of when his father was critically ill in his previous life. Suddenly, national prices soared, making his already difficult life even harder.

He remembered that at that time, he and his mother were left relying on each other. Without the help of neighbors, they would have struggled to even get enough food.

Not only his family but many others faced similar difficulties. The local factory had just restructured, and many families were not receiving their wages.

This situation turned a well-off district into a poverty-stricken area under unreasonable policies.

Zhou Ming also recalled numerous buying frenzies and bank runs across the country, nearly leading to a major disaster. Fortunately, the central government managed to stabilize the situation in time. Otherwise, it would have been disastrous.

Even though the situation was stabilized, the hidden dangers remained, leading to the necessity for another food basket project in the late 1990s to ensure most people could have enough to eat.

Du Zhongyuan looked at Zhou Ming and said, "Say what you need to say. Since it's just us here, no matter if what you say is right or wrong, no one else will know. Even if you say something inappropriate, everyone will forget it once you walk out the door."

Zhou Ming nodded and said, "Chairman Du, I believe that increasing prices might seem like it benefits farmers, but in reality, farmers won't gain any real benefit."

"Why is that? The grain purchase price has already been increased," Du Zhongyuan asked, surprised.

"The grain price has been increased, but it mainly means that the state subsidies have been reduced. It's more about easing the burden on the state rather than truly raising the price," Zhou Ming said. "So, while prices are starting to rise, the actual grain price hasn't truly increased. Farmers' lives are becoming more difficult, and who will want to farm? Without farming, what will hundreds of millions of people across the country eat?"

Faced with Zhou Ming's questioning, Du Zhongyuan fell silent again, as Zhou Ming's point was quite incisive.

However, with memories of the future, Zhou Ming couldn't avoid being incisive. The central government's continuous efforts on the rural issues in later years were essentially correcting previous mistakes.

Moreover, the prevalence of genetically modified foods in later years was due to the insufficient agricultural population, forcing the country to turn to GM foods.

In his previous life, Zhou Ming had no effective solutions to these issues. But now that he was reborn and had the opportunity to present these issues to the future president, he had to seize this opportunity. Otherwise, he would regret it deeply.

Listening to Zhou Ming's pointed remarks, Du Zhongyuan fell into deep thought once again. After a long time, he sighed heavily and then looked up at Zhou Ming and asked, "I heard that in the last phone conference with Nanjiang, you declined Chairman Dong's invitation to work at the State Council. Why?"

"Firstly, I don't think I'm suitable for being an official. I can serve as an advisor to the party and government, but I'm absolutely not fit to work in government. I have many businesses both domestically and internationally. Balancing business with official duties, I can't guarantee my integrity. Furthermore, I believe everyone should have a clear position. Not everyone can be an official."

Zhou Ming continued, "I remember a Vice Premier who was well-suited for a grassroots leadership role but was promoted to Vice Premier. It ended up being a torment for him. Similarly, I could be a successful businessman, but pursuing power and becoming an official would only bring trouble."

Du Zhongyuan's eyes showed surprise. Zhou Ming's evaluation of that Vice Premier was identical to Yang Lao's evaluation, but Yang Lao was the actual highest leader of the country. For an ordinary person like Zhou Ming to have such insight was indeed astonishing.

In fact, Zhou Ming also omitted part of the reason for rejecting Dong Zhen's invitation—he was well aware that Dong Zhen would definitely fall from power. However, mentioning this in front of Du Zhongyuan was not appropriate. If Du Zhongyuan heard this, he would certainly be shocked. After all, the central government was currently in turbulent waters, and even they couldn't predict the future. For Zhou Ming, an ordinary person without inside information, to make such a judgment was indeed surprising.

"You have quite a sense of self-awareness," Du Zhongyuan said with a smile, "Since that's the case, I won't force you. But I now invite you to be an external advisor to the central government. That should be acceptable, right? With your talent, how could you not contribute to the country?"

"Since

 Chairman Du has put it this way, I can't refuse," Zhou Ming said.

"This kid, do you think I'm trying to wrong you by representing the central government to invite you to work?" Du Zhongyuan said in mock irritation.

Zhou Ming quickly shook his head and said, "Of course not. I'm extremely, extremely happy!"

Du Zhongyuan shook his head and repeated, "You're really slick!"