Will the Yellow Sapphire people earn more money after the pandemic?
Release time:
2023-05-09
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Will the economy rebound after the pandemic? Many people take it for granted that, over the past three years, the pandemic caused an economic downturn and made it harder to earn money. Even more naturally, they assume that now that the pandemic is over, the economy will naturally return to the rapid growth and easy-money era we enjoyed before 2019. But will reality really be so rosy? In February of this year, a seemingly optimistic statistic hinted that this year might not be easy—at least, it could be even tougher! What kind of data could have such a powerful impact? The answer is: household savings. In February of this year, the total amount of household deposits across the country increased by 6.2 trillion yuan. By comparison, in all of 2022, household deposits totaled only 17.84 trillion yuan; in 2021, the entire year’s total was just 9.9 trillion yuan. Yet in just one month this year, deposits surged by more than 6 trillion yuan. Let’s analyze how this dramatic increase in savings might affect our ability to make money... Talking about money can be emotionally taxing, but all aspects of our lives ultimately start with money. First, in the everyday understanding of most people, the term “money” itself can be somewhat vague. For example, when we say Li Ka-shing is very wealthy, what we’re really referring to is his vast wealth of assets—not necessarily the amount of currency he holds (like RMB, U.S. dollars, or British pounds). Similarly, when we talk about “people’s money,” we’re referring to the assets we own, not just the currency itself. According to 2019 data, among the assets owned by ordinary Chinese households, housing accounted for 65.9%, automobiles for 5.2%, and other financial instruments and bonds for 12.4%. True cash—or currency—made up only 8%. Therefore, the more than 6 trillion yuan increase in deposits in February doesn’t mean that ordinary people have become richer; rather, it simply reflects a shift in the composition of household assets. In other words, people are becoming less confident in investment assets like real estate and financial instruments, so they’re selling off these assets and converting them into actual cash, depositing it in banks to preserve their value. In fact, since 2019, China has consistently seen an increasing trend in savings and a decreasing trend in loans—precisely because both consumption and investment have been shrinking. Some of you might be wondering: If this is a nationwide phenomenon, how does it affect me, an ordinary person earning tens of thousands of yuan per month? What impact does it have on my ability to make money? The answer is: It does have an impact—and quite a significant one! Here, we must first mention Keynes, the father of modern economics. He argued that no matter how much goods a society produces, if residents neither invest nor consume, but instead keep their money in banks without letting it circulate, social demand will decline. As a result, businesses will have no choice but to cut production, leading to lower revenues. With fewer revenues, companies will be forced to lay off workers. Those laid-off workers, lacking income or afraid to spend more, will further reduce demand—a vicious cycle that eventually leads to a severe economic depression. So even if, like us at Huang Bao Shi, our productive capacity keeps growing stronger, in the end, everyone could still become poorer. Simply put: In today’s modern economy, the more you spend, the richer you become! Finally, there are only three channels through which the wealth of all Chinese people can grow: first, consumption; second, investment; and third, exports. Now, this surge in savings suggests that both consumption and investment are declining. And this year, exports are being hampered by international economic forces led by the United States. The concrete effect on business owners and wage earners is this: Business is getting harder and harder to run, money is becoming harder and harder to earn, jobs are becoming harder to find, and wages are struggling to rise.
Will the Yellow Sapphire people earn more money after the pandemic?
Many people take it for granted that, over the past three years, the pandemic caused an economic downturn and made it harder to earn money. Even more naturally, they assume that now that the pandemic is over, the economy will naturally return to its previous state. 2019 The days of rapid growth and easy money as there were years ago are over. But will reality really be that rosy?
This year 2 A seemingly optimistic piece of monthly data seems to be signaling that this year won't be easy—at least not any easier! What kind of data could be so devastating?
The answer is: Household savings.
This year 2 In the month, the total savings of residents nationwide increased. 6.2 Trillions. In contrast, last year... 2022 The residents' deposits for the entire year are only... 17.84 Trillion, 2021 Only once a year 9.9 Trillions—and this year alone, it has increased by that amount in just one month. 6 With trillions more, let’s analyze how this sharp increase in deposits is affecting our ability to make money.
Talking about money can be emotionally taxing, yet all aspects of our daily lives inevitably start with money. First, in the everyday understanding of us ordinary people, regarding... The term “money” can be somewhat ambiguous in its usage. For example, when we say that Li Ka-shing is very wealthy, what we’re actually referring to is the substantial amount of assets he owns—not necessarily the large quantity of currency (such as RMB, U.S. dollars, or British pounds) he holds in his hand. Similarly, when we talk about “the people’s money,” we’re referring to the assets we collectively own, rather than just the currency itself. According to... 2019 In terms of annual data, what percentage of the assets held by ordinary people is accounted for by housing? 65.9% , automotive share 5.2% and the proportion of other financial bonds and other assets 12.4% And the real money—or rather, currency—accounts for only... 8%。
Therefore, 2 Increased by month 6 With deposits totaling trillions of yuan, it’s not that the bosses have become even wealthier—rather, it simply reflects a shift in how ordinary people are structuring their assets. Specifically, investment assets such as real estate and financial instruments are no longer viewed favorably; instead, people are selling off these assets and converting them into cash, depositing the cash in banks to preserve their value. In fact, from... 2019 In recent years, our country has seen a growing trend of increasing deposits and decreasing loans—this phenomenon is actually driven by declining consumption and investment.
You might be a bit curious now—wondering: How could phenomena in the national society possibly affect me, an ordinary citizen earning several tens of millions of yuan a month?
The answer is: Yes! And it’s not small either!
Here, we must first mention Keynes, the father of modern economics. He argued that no matter how many goods a society produces, if its residents neither invest nor consume—instead simply depositing their money in banks without it circulating—social demand will decline. As a result, businesses will be forced to cut back on production, leading to lower revenues. With reduced incomes, companies will have no choice but to lay off workers. These laid-off workers, lacking income or afraid to increase their spending, will further depress demand—a vicious cycle that ultimately leads to a severe economic depression. Thus, even in a situation like ours, where production capacity keeps growing stronger—such as with our Yellow Gem—eventually everyone could end up becoming poorer and poorer. In short: In today’s modern economy, the more you spend, the richer you become!
Finally, the wealth of all Chinese people can only increase if... 3 Three channels: first, consumption; second, investment; third, exports! Right now, the increase in savings suggests that both consumption and investment are declining. Meanwhile, this year’s exports have been hampered by international economic forces led by the United States. As a result, for business owners and wage earners alike, the concrete reality is this: doing business is becoming increasingly difficult, making money is getting harder and harder, finding jobs is growing more and more challenging, and it’s becoming very hard to get a raise.
Now that we’ve covered the points that needed to be made, let’s talk about how we Huangbao people can start making money.
Under this overarching situation,
First of all The business units of Huang Bao Shi need to gradually attract larger, better, and higher-quality customers, because small customers are likely to be unable to sustain themselves.
Second, the manufacturing department needs to achieve higher production capacity without increasing the number of employees, because large customers are placing substantial order volumes. If more people were added simply to handle more orders, it would still result in lower profits.
Then, the quality department needs to hold even more firmly to the quality底线—because the larger the customer, the higher their quality requirements. As a result, more capacitor manufacturers are eager to collaborate with these big clients and compete for our business. If we loosen our quality standards at this point, we’ll be shooting ourselves in the foot. It’s quite possible that giving in to pressure on quality today could leave us without a job tomorrow!
Gemstone People, get ready mentally: If in the past, putting in 10 units of effort would yield 10 units of results, then over the next one to two years, you’ll need to put in 12 units of effort just to earn 8 units!
This, this is reality!
Keywords:
Economy, deposits, assets, we, consumption, this year, investment, residents, not good, ordinary people
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