The government shuts down informal businesses

        In recent years, my country’s environmental protection policies and environmental supervision laws and regulations have been continuously improved. A large number of small and medium-sized enterprises have been shut down due to their failure in environmental protection inspections. Economic development cannot be done at the expense of the environment. How much determination is there.
Environmental protection has become more and more stringent this year. As a result, many companies have closed, suspended production, and reduced production. There are complaints everywhere, and many small bosses go bankrupt overnight. Local governments are also full of conflicts. Catch it directly affects GDP and tax revenue. Income affects employment and may also bring social instability.

So why does the central government still strike out to do so? The superficial reason is to improve the environment, give the people a blue sky, return the people’s clear river water, and return the people’s clean air. Of course, this is one of the reasons, but it is not the main reason. The author believes that the main reasons are as follows:
Reason 1: Eliminate the spoilers of economic development—dirty, messy and irregular enterprises.
In the early stage of reform and opening up, this type of enterprise undoubtedly played a great role in economic development, solving a lot of employment, contributing a lot of taxation, and also contributing a lot of GDP. The economic development to this day requires domestic enterprises. Transformation and upgrading, otherwise it will be uncompetitive in the entire international market.
However, transformation and upgrading require enterprises to invest a lot of funds. Where do these funds come from? Do you rely on borrowing? Borrowing is only a temporary method. In the final analysis, it still requires companies to have huge profits and use profits to promote transformation and upgrading. But the current situation is that the profits of the entire production-oriented enterprise are not high, mainly because the sales price is low.
Why the selling price of the product is not high and the profit is low? Mainly because there are so many market disruptors. A formal enterprise needs to pay taxes, need to invest in high environmental protection equipment costs, need to pay full insurance to employees, high research and development costs, good working environment costs, safe work costs, in order to ensure product quality and services must have Expensive management costs, so the cost of formal enterprises is very high.
An informal company or workshop does not have these costs at all. Even if there is, it is pitiful. Such a company has a much lower cost than a formal company, so they can obtain sales at a low price. In order to obtain sales, enterprises can only depress prices, which leads to the phenomenon of low sales prices and low profits of formal enterprises. Therefore, this phenomenon is extremely unfair to formal enterprises. Therefore, formal enterprises will also find ways to reduce operating costs, and there will also be tax avoidance, environmental protection equipment not used, etc., and will also find ways to reduce raw material costs and management costs, because only such formal enterprises still have Living space.
Therefore, at the current stage of economic development, the central government has no choice but to cut off those informal enterprises or gradually transform all enterprises into formal enterprises, and at the same time, it can also eliminate some excess and backward production capacity. Only in this way can the company’s profits be increased, so that the company has more funds to invest in research and development, transformation and upgrading, and to provide more benefits to employees. Only in this way can the entire domestic economy enter a virtuous circle. Let our enterprises have real competitiveness in the entire international market.
Reason two: improve the company’s employment environment.

For all companies, the most lack of talents is talents. It takes many years to develop a good talent company. It requires a variety of training and training, and it also requires a lot of money to be invested. But often talents are well trained. It was poached by other small businesses with high salaries, because small businesses did not invest a lot of time and expense in cultivating talents. It is the easiest, fastest and lowest cost method to dig talents. This has also led to the reluctance of formal enterprises to train more talents, which is also extremely unfair.
For employers, everyone feels that current employees are impetuous, emotional, and resign at every turn. Even if they do not leave, they are unwilling to work hard, and people are becoming more and more difficult to manage. Why does this phenomenon occur? Mainly because there are too many informal enterprises in the society, I can find jobs everywhere when I leave here.
Therefore, in order to change this phenomenon, the central government can only deal with it painfully, reduce the number of informal enterprises, and change the phenomenon of lack of brain drain. Although the disposal of many informal enterprises also reduces jobs and may also bring local turbulence to the society, this is no way, because only in this way can enterprises sink their hearts and cultivate more talents. Only by making employees less impetuous can the economy develop better and healthier. Just like the War of Liberation, many people have to sacrifice in order to build a new China. In order to build a good and healthy market economy environment, we can only endure this kind of pain.
Reason three: effectively increase the government’s fiscal revenue.
Why in the past few years, the main way for local governments to obtain fiscal revenue was land sales? Because the government is short of money and income, it can quickly obtain more fiscal revenue through land sales, which also pushes housing prices to astronomical figures, making the people unable to buy houses, and allowing the entire society to invest in real estate speculation. , On the other hand, is also obliterating the real economy.
Therefore, from now on, all enterprises must be formalized, and everyone pays taxes without evading taxes and avoiding taxes, so that the government’s fiscal revenue can be high, and there is no need to rely on land sales to obtain fiscal revenue subsidies. The government can better stabilize the society and better serve the enterprises and the people.
For enterprises, if all enterprises are formal, then everyone’s costs will be similar, and there will be no tax evasion, tax avoidance, and tax evasion. Business owners can also devote all their energy to the real development of the company, without having to live with fear, and without having to use their brains. For consumers, they will not buy those products with ignorance.
Recently, there have been many complaints on the Internet about the current environmental protection issues, and everyone is also surprised that the central government has to vigorously develop the real economy on the one hand, and on the other hand, it is desperately focusing on environmental protection and shutting down enterprises. In fact, this is not a contradiction. In the future, the central government wants companies that are “acceptable, responsible, and conscientious,” rather than companies that make money without conscience for their own interests. For those companies that are ignorant of conscience, they will definitely not have any Living space.
Therefore, we must look at things in-depth, not just to see the bad side, but to see the good side more. The long-term pain is not as good as the short-term pain. We must support the work of the government. No matter how we say it, the central government always hopes that the people will Can lead a good life, have a good natural environment, and have a good economic environment.

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