At present, a worrying phenomenon of "living in advance but not earning enough for the next year" has gradually emerged in the economic field. Its impact is wide-ranging and far-reaching, involving multiple levels such as local governments, enterprises and ordinary consumers, and has brought many challenges to the healthy development of the entire social economy.
At the local government level, some regions have contracted a large amount of public resources to private companies in pursuit of short-term development results. Although this approach may bring about certain economic growth and acceleration of infrastructure construction in the short term, it may pose hidden dangers in the long run. Over-reliance on this approach may lead to irrational allocation of public resources and unsustainable long-term operations. For example, after some infrastructure projects are contracted, private companies may ignore quality and long-term maintenance in pursuit of short-term profits, ultimately affecting the quality and efficiency of public services. At the same time, this may also cause local governments to face problems of resource shortages and increased debt pressure in the future, restricting their ability to achieve sustainable development.
Debt-raising expansion by real estate companies is also a typical manifestation of living beyond one's means. They borrowed a large amount of money from banks and blindly pursued rapid expansion and rising housing prices, but ignored the actual market demand and the purchasing power of ordinary people. This development model that relies too much on debt may bring high profits during the boom period of the real estate market, but once the market situation changes, such as policy adjustments or falling demand, companies may face the risk of a broken capital chain. Not only that, excessively high housing prices have also brought a heavy burden to ordinary people, squeezed other consumption capabilities of residents, and had a certain inhibitory effect on the development of the real economy. At the same time, the instability of the real estate market may also trigger risks in the financial system and affect the stable operation of the entire economy.
For ordinary consumers, the trend of pre-consumption is prevalent, and a large amount of debt consumption has become a common phenomenon. The widespread use of mortgages, car loans, consumer loans and credit cards has caused many people to overdraw their income for the next few decades. Although consumer credit can promote consumption and drive economic growth to a certain extent, over-reliance on debt consumption also has risks. Once an individual faces economic fluctuations, such as unemployment, illness and other unexpected situations, he or she may not be able to repay the debt on time, resulting in damage to personal credit and even financial difficulties. Moreover, from a macro perspective, excessive debt consumption in the entire society will reduce the savings rate of residents, affect the long-term stable development of the economy, and make the economic development lack of stamina.
In the face of this phenomenon of living beyond one's means, we need to take a series of measures to deal with it. First, local governments should establish a correct development concept and focus on the quality and sustainability of economic development. In the use of public resources and project decision-making, scientific and reasonable planning and evaluation should be carried out to ensure the effective allocation of resources and long-term benefits. Supervision of public projects should be strengthened to ensure that public interests are not harmed. At the same time, we should actively promote industrial structure adjustment and transformation and upgrading, cultivate new economic growth points, and reduce dependence on short-term resource transfer.
We should strengthen supervision over real estate companies and guide them to rationally finance and develop healthily. We should improve the real estate market regulation policy, curb the rapid rise in housing prices, and return them to a reasonable range to meet the actual purchasing power of the people. We should encourage companies to focus on product quality and innovation, and improve their market competitiveness, rather than simply relying on debt expansion.
At the consumer level, financial education should be strengthened to improve consumers' financial literacy and risk awareness. Rational consumption concepts should be advocated to allow consumers to reasonably arrange consumption and debt according to their actual conditions. Financial institutions should also strengthen risk management, strictly review loan conditions, and avoid excessive lending that may bring excessive debt risks to consumers.
From the perspective of macroeconomic policy, the government should strengthen the coordination of monetary policy and fiscal policy to maintain stable economic growth. It should reasonably control the money supply and credit scale to avoid excessive stimulation leading to the accumulation of debt risks. At the same time, it should increase support for the real economy, enhance the endogenous driving force of economic development, and strengthen the economy's ability to resist risks.
In short, although the phenomenon of "living beyond one's means" may bring a certain degree of economic prosperity in the short term, it will cause great harm to the healthy development of the economy in the long run. We must face up to this problem, take effective measures to correct and prevent it, and guide the economy towards a more stable and sustainable development path to ensure long-term economic prosperity and social stability and harmony.
