What are Public Works Projects?

Public works are engineering activities carried out by the administrative subject on real estate for the public interest, as well as engineering activities carried out by other persons on real estate with the intention of realizing the administrative subject's intention. The following conditions must be met: (1) Real estate is the object. Non-physical activities are not engineering, and the scope of real estate includes real estate according to natural properties and real estate acting according to uses. (2) For the public interest. The administrative subject is implemented for the purpose of public interest and has special powers. The administrative subject manages private property projects purely for fiscal revenue, not public works. (3) Implemented by the administrative subject itself or by others for the purpose of the administrative subject. Projects carried out by others, but with the benefit of the administrative subject as the purpose of the process, that is, the project carried out for the purpose of the administrative subject. ^[1]

public construction

Strengthening economic construction, building infrastructure that is indispensable for economic development and privately unwilling or unable to do so; ^[2]

At present, China's banks have excess deposits and society has money. However, this does not mean that public works are rich. The money is not used urgently, and the money is not used urgently. This is a common phenomenon under the conditions of monetary economy. But this is not insurmountable. It is this contradiction that promotes the development of social credit and capital markets, making finance a vibrant industry in modern society. On the other hand, if you have money and you do nt have money, do nt use it. Finance will lose its role and charm. ^[2]

Thanks to the demand from domestic public works, China's wood-plastic composite manufacturers continue to expand. Although the overseas market continues to decline, thanks to the demand from domestic public works such as post-earthquake reconstruction and various international events organized by China, China's export-oriented wood-plastic composite manufacturers continue to expand. ^[2]

Whether increasing public project investment will cause prices to rise is not the only answer. Answering this question requires further analysis of background conditions. Under the condition that investment goods and most daily-use consumer goods are in excess of supply and an inventory backlog is formed, increasing public works investment can absorb idle resources, which will not only lead to rising prices but will help sales promotion. Reduce the backlog of electricity, refrigerators, clothing, shoes and hats, and reduce the losses of state-owned enterprises. Conversely, if investment and consumer goods are in short supply. Then, increasing public works investment will cause prices to rise. ^[2]

China currently belongs to the former situation, that is, resources are idle, not the latter situation. This determines that China's appropriate increase in public works investment at this stage will not increase inflation. In the long run, it will also help stabilize prices. We should seize this great opportunity without hesitation.

First of all. Increasing investment in land improvement projects such as water conservancy, afforestation, and desertification, which are closely related to agriculture, will increase the output of food, vegetables and meat in a few years. Increasing the supply of scarce agricultural products will help stabilize agricultural prices.

Secondly. Increasing investment in renewable energy projects such as hydropower and wind power can stabilize power generation costs in the long run. This stabilizes the price of electricity, which in turn helps stabilize the prices of other products that consume a lot of power.

Thirdly, increasing investment in transportation and communication projects such as railways, highways, and fiber optic cables will help stabilize freight and communication costs in the long run. Increasing investment in subway and light rail will help stabilize the price of services in the city's bus system. In the past two years, urban and rural people have been able to obtain comfortable and cheap public transportation services. In the case of food, vegetables, meat and other food prices have risen sharply, and the overall retail price index has reached a double-digit rate. The prices of household appliances such as color TVs, refrigerators, washing machines, and some big cities such as Beijing and Tianjin have been relatively stable, with little increase. It even declined. The reason for this is inseparable from the investment in this area in previous years.

Proven in practice. "Developing production and ensuring supply" is an important measure for stabilizing prices. Therefore, from the perspective of theory and practical experience, it is impossible to consider increasing investment absolutely and without analysis as a factor of price increase. Regarding increasing investment is often regarded as an increase The price factor is a prejudice unique to China. This prejudice is extremely harmful to the normal development of our economy.