It's a bit late, sorry!

Continue to call: Please follow! Please click! Please collect! Please recommend!

...

When Zhao Zhenzhong heard Roosevelt ask about his opinion on the current crisis, he was stunned. However, seeing Roosevelt's expression did not seem to be a test-taking person, but instead, it seemed like an elder who chose a topic to chat with his juniors. He sorted out his thoughts and said, "I came to New York in August. I have seen the changes in the United States before and after the stock market crash. I have also thought about some of my problems. I will only talk about some of my understanding. Please correct me if there is something wrong."

Roosevelt nodded with a smile and signaled Zhao Zhenzhong to continue.

"I have read some books briefly introducing Adam Smith's Wealth of Nations. At that time, I also felt that the liberal economic policies pursued by the Western world were indeed more efficient, and believed that this was a major reason for the rapid development of the Western capital world in the past 2 or 300 years. But after this crisis, I kept thinking: Can the 'invisible hand' really handle all the problems that occur in the market? Are the things Adam Smith said outdated?"

"While I cannot be sure whether the liberal economic policy advocated by Adam Smith is now outdated, judging by the situation where banks, factories collapsed in large numbers and unemployed workers in the United States after the crisis broke out, at least the 'invisible hand' cannot handle all the problems that are happening in the market."

After listening to what Zhao Zhenzhong said, Roosevelt's originally casual expression gradually became serious. Seeing that Zhao Zhenzhong paused, he encouraged: "Young man, you might as well say anything if you have any ideas. I'll listen carefully."

Zhao Zhenzhong nodded with a smile and continued: "For the real reason of the crisis, although I have difficulty accessing detailed information and cannot accurately explain the crux of the problem, I have also considered some issues during this period. I will tell you my own opinion."

"I think one of the major reasons for this crisis, especially the collapse of the stock market, is that speculation is prevalent, and the real economy such as the virtual economy of the stock market is seriously disconnected. For a long time, people have always called the stock market a "barometer of economic conditions", but I personally think this statement is inaccurate. If the stock market truly reflects the real economy, then this statement is understandable, but if the stock market is manipulated by human factors and becomes overheated or too cold, it is not a barometer, but a reverse indicator. To a certain extent, economic growth will bring prosperity to the stock market, but the prosperity of the stock market may not be the result of economic growth."

"I don't know what the real value of those listed companies is, but I'm sure that before the stock market crash, the stock prices of listed companies must have far exceeded the real value of their companies. Affected by this, some manufacturers invested production funds into the stock market in pursuit of higher returns. When I met a few friends in Boston in September, I found that several of them not only invested production funds, but even mortgaged factories to banks to obtain loans and then invested in the stock market. I advised them to stop at that time, but they felt that the stock market had a considerable return, and none of them were willing to listen to me. But no matter how beautiful the soap bubble is, it will always be blown out. Stock markets that are manipulated by humans will collapse even if they are separated from the real economy."

"Also, I think that another reason for this crisis is the uneven income distribution and the huge gap between the rich and the poor." Zhao Zhenzhong continued, "I haven't been here in the United States for a long time, but I found that in the United States, a country where billionaires have appeared, there are also many people living in extreme poverty. They can't even eat and don't cover their bodies."

"I don't know how many people the rich and poor people in the United States can have, but the serious gap between the rich and the poor is not conducive to economic development. To a certain extent, the demand for basic life of the rich has reached saturation, and it is difficult to grow rapidly within a certain period of time. Although the poor have a large amount of demand for improving basic life, their income is obviously insufficient, so they are unable to improve their own lives and even less able to drive economic growth. The water that the barrel can hold is determined by the shortest wooden board. Similarly, the stability of the country and the economic development should also be determined by the shortest "wooden board". Of course, the specific situation is different, and the shortcomings are also different."

"If the first two reasons are the causes of the crisis, then some of the current actions of the US government will be the reasons for the continued worsening of the crisis."

"The US government's approach has led to the continued worsening of the crisis? This is a bit incredible. Young man, please tell me carefully." Roosevelt said solemnly.

"After the crisis broke out in late October, President Hoover issued a series of measures to save the economy, with good intentions but counterproductive results."

"For example, President Hoover announced a ban on wage cuts to protect workers' income. This seems to be protecting the interests of workers, but in fact it is helping the poor. Because President Hoover did not lower the factory tax rate at the same time. On the contrary, I saw some statements in newspapers that advocated the president's increase in tax rates. If workers' wages are not cut and the tax rate is raised, it will definitely be difficult for companies to maintain under the influence of the crisis, and eventually they will only lay off employees or go bankrupt. The result of laid off workers or workers after the factory collapses can be imagined."

"Also, President Hoover established the Federal Agriculture Commission to stabilize grain companies and purchase grain from farmers at prices higher than the market to increase their income. This does seem to protect the interests of farmers, but the government is worried that putting these grains on the market will hit the price of grain and destroy them in vain. The result is that grain prices are rising on the one hand, and many unemployed people are unable to buy food, while on the other hand, the government destroys large amounts of grains regardless of the basic needs of the unemployed."

"In addition, I also saw in the newspaper that some members of Congress are seeking to pass legislation to increase tariffs to protect the US economy. And judging from some of President Hoover's speeches and statements, he supports this legislative plan. From the current public opinion perspective, passing this legislative plan seems to be a matter of time and procedure. But raising tariffs to protect the US domestic economy through legislation is definitely a terrible loss."

"Although the free economic policy is not a panacea to cure all diseases, it has been pursued by countries around the world for a long time. If the United States takes the lead in breaking this principle, it will inevitably be retaliated by other countries. Not only will the United States protect its domestic economy, but other countries will also do so. This will definitely cause world trade to shrink and extend the time for countries to recover from the crisis."

"I personally find it hard to understand what President Hoover has done in these aspects. I always feel that this president is helping too much. I don't understand how the American people elected such a president and still feel at ease to let him mess with the American family's wealth?"

"Of course, President Hoover launched a series of infrastructure projects such as the San Francisco Bay Area Bridge, Los Angeles Aqueduct, and Hoover Dam. It is still worth appreciating that President Hoover's approach to expanding government fiscal spending to improve domestic employment levels. However, this also shows that the 'invisible hand' is not omnipotent."

Zhao Zhenzhong did not go too deeply into all aspects of the crisis, but talked about his understanding of the crisis from the perspective of a young man who has not been in the United States for a long time, has studied business at a certain level, has seen the outbreak of the crisis and has thought about it for some time, and has talked about it. But these words have attracted enough attention from Roosevelt. In particular, Zhao Zhenzhong's judgment on the possible consequences of legislation to protect the US economy by raising tariffs, which shocked Roosevelt.

"Young man, I have to admit that your opinion is very insightful. Of course, I have reservations about the comments you gave to President Hoover." Roosevelt's smile was full of appreciation. "Since you have discovered these problems, have you ever thought about how to solve these difficulties?"

"I'm sorry, Mr. Governor, I haven't thought of a good way now. Moreover, these major problems should be something that big people need to solve, not something that I, a small businessman, can solve now. However, one thing I can be sure of is that if President Hoover is still powerless to the current economic situation of the United States, he will leave the White House in a few years." Zhao Zhenzhong asserted, "We in China have a saying that 'food is the most important thing for people', which emphasizes the importance of people's food. If a government keeps the people in a state of hunger for several consecutive years, then this government will definitely not be far from stepping down."

"Oh? This is the first time I have heard this statement, but it makes sense." Although Roosevelt had some thoughts, he was thinking about the Democratic Party's Zheng-Chun and had not thought about himself.

"Haha, if Mr. Governor runs for the US president a few years later, we will definitely support Mr. Governor through Huamei Investment Company." Zhao Zhenzhong said half-jokingly and half-seriously.

Roosevelt also blinked at Zhao Zhenzhong and joked: "Then let's make a decision first."

"A word is determined!" Zhao Zhenzhong smiled, "I have a suggestion. If it is not said well, don't be surprised by Mr. Governor."

Roosevelt smiled and said, "You said."

"I think the governor might as well conduct an experiment in saving the economy in New York State during his tenure as governor of New York. In this way, more targeted policy measures can be taken when he wins the White House in a few years." Zhao Zhenzhong said.

"Are you serious?" Roosevelt was a little surprised. "I thought we were joking just now."

"Anyway, improving the situation in New York State and improving the situation in the entire United States is a problem of nature, but the latter is larger in scope, more people, and more complex problems. Besides, improving the situation in New York State is the responsibility of the Governor, so why not take this opportunity to arrange some things more planned?" Zhao Zhenzhong suggested.

"Young man, you really surprised me. However, it is not the time for me to consider this issue. I am just the governor of New York, and my responsibility is to manage New York State well. As for the others, that is something in the future." Roosevelt had a vague idea in his mind, but he is a pragmatic person, and it is still a bit too early to talk about things in a few years.

"We understand that Huamei Company will try its best to create jobs to assist the Governor. Of course, we also urge the Governor to provide us with some convenience in terms of policy. Otherwise, no matter how good we have or how much money we have, it will be useless if we cannot start a company in New York State." Zhao Zhenzhong said earnestly.

"Young man, you are good at seizing opportunities." Roosevelt looked at Zhao Zhenzhong with a smile and said meaningfully, "Don't worry, I will provide any help you can."
Chapter completed!