When Chinese people talk about why they are poor, they always think that it is because the government does not vigorously promote economic development, the government does not help the poor, the poor do not receive a good education, are physically ill, cannot find high-paying jobs, or even God is blind, so he becomes poor.

However, what I want to tell readers is that the truth is exactly the opposite. The factors you think can save you from poverty are actually the reasons why you become poor. What’s more serious is that if you don’t know the truth about becoming poor, not only will you become poor, but your children and grandchildren will remain poor. Below I will tell readers a few truths about becoming poor that you don’t know.

The more the government stimulates the economy, the poorer you will be

One of the truths is that the more vigorously the government actively stimulates economic growth, the poorer you will be. Does this seem sensational? If readers think that as the economy grows, your income will rise, then you are wrong, and you are completely wrong.

The higher the minimum wage, the poorer you are

The second truth is that the more the government protects the poor, the poorer you are. Do readers find this view illogical? In everyone's mind, the government can only increase the income of the poor and make them rich only by increasing taxes on the rich, increasing transfer payments, strengthening the bargaining power of labor unions against enterprises, and continuously raising the minimum wage level.

In fact, few Chinese people know that this kind of logic is unhealthy and harmful. After the merger and reunification of West Germany and East Germany in 1990, faced with a high unemployment rate of more than 10% at that time, the German government did not target the rich and companies. On the contrary, it reformed the Labor Law and introduced restrictions. Wage increases, reductions in pensions and other measures to reduce labor protection, on the other hand, create a more flexible, free and relaxed operating environment for business leaders and wealthy people, promoting a more market-oriented economy. As a result, Germany's labor costs are much lower than those in other EU countries. This increases the willingness of foreign-funded and domestic enterprises to expand investment in Germany, and also greatly promotes exports. Germany once became the world's largest exporter, and now it is The world's third largest exporting country.

Because the German government has adopted this approach that readers find very "illogical", Germany has now become the largest economy in Europe. The income of the people has also increased year by year, and the per capita income is higher than that of France. , Britain and Italy are all higher.

Why does the German government do this? Because if the government places too much emphasis on the rights and interests of workers, or even fails to respect the laws of the market, and forces companies to raise the minimum wage level and give workers a raise, it will only increase the operating costs of the company, which will lead to a decrease in the price competitiveness of export products and a reduction in exports. It affects profits, causing companies to reduce their business scale or invest in other countries, and the number of employees to decline. In the end, it is the poor who are affected.

The more your house appreciates, the more you should be afraid

Truth No. 3: The higher the house price and the more debt you borrow, the poorer you will be. Have any readers ever thought that the more the value of their house increases, the poorer they will become? If not, I'll tell you why now.

The rise in housing prices, for most readers who buy a house to live in, only increases their wealth on paper, but does not really increase their actual wealth. However, because rising housing prices can easily give readers the illusion that they are rich, they will often increase consumption and develop the habit of spending money lavishly. This will lead to a reduction in savings, and on the other hand, it is easy to use the increased value of money. Real estate, increase mortgage lending, and even direct real estate investment.

Readers, you must know that the consequences of this are very serious. Because house prices will not rise forever, once house prices fall, or even fall sharply, it will easily trigger a chain reaction or even a financial crisis. Many families will easily become insolvent, leading to credit and financial crises, and in serious cases, bankruptcy.

This problem has not happened before in Western countries, and it is not that scholars have warned against it. Raghuram Rajan, the former chief economist of the International Monetary Fund (IMF), once said in his The article "Fault Lines" writes: The U.S. government adopts policies to encourage low- and middle-income people to borrow, such as subsidies and loan guarantees for low- and middle-income people to buy houses. However, these lending methods are not sustainable and will only Creating the illusion that low- and middle-income people have become wealthy not only prompts them to develop the habit of taking on more debt to maintain consumption, but it also causes credit card debt to skyrocket.