"These mixers cost 1,600 each. I'll send a truck over right away."
Wan Feng was anxious at the time: "Godfather, this thing is not mine, it belongs to the collective. If you do this, it will be difficult for me to return. So I will give in a little. 1,800 yuan, no less. You are doing such a big project and you still care about these two dollars."
Zhou Bingde smiled bitterly, "Kid, don't be fooled by the booming Hongya Market. Actually, you don't know that there were originally going to be a lot of buildings on this newly opened road, all the way to the bus station. The bus station was going to be moved to Hongguang. But now, apart from the three shopping malls and a cinema here, do you see anything else under construction?"
After Zhou Bingde said this, Wan Feng looked around and found that except for the three shopping malls here, all other places that had a record of starting construction in the early stage had stopped.
"Many infrastructure projects have been stopped or put on hold this year. The country is said to have run a large deficit in the past two years, so these projects have been suspended."
After Zhou Bingde said this, Wan Feng suddenly remembered.
1981 was indeed not a good year. In the past three years, the country has introduced a series of policies, including salary increases, bonus distribution, employment placement, policy refunds, price increases for agricultural products, and expansion of corporate and local finances. Although the scene looks prosperous, the country has a large fiscal deficit.
On the other hand, countless small factories and state-owned enterprises in the south competed for raw materials and markets, which led to complaints from state-owned enterprises.
Thus the first macro-control began.
The country began to comprehensively cut off unplanned investment, borrowed local fiscal deposits, issued treasury bonds to enterprises and local governments, temporarily froze the free funds of enterprises in banks, and cut bank loans.
In January this year, the State Council issued two emergency documents to "crack down on speculation and profiteering."
The "Instructions on Strengthening Market Management and Cracking Down on Speculation and Smuggling Activities" stipulates that individuals are not allowed to sell industrial products without the approval of the industrial and commercial administrative department.
Rural collectives may transport the second and third category agricultural and sideline products that are in excess and not purchased by the state after the collective and nearby collectives have completed their state purchase tasks and fulfilled negotiated purchase contracts.
The sale of certain products is prohibited, and individuals are not allowed to purchase large transportation vehicles such as cars, tractors, motor boats, etc. for sale.
Then on the 30th of that month, the state issued another document, "Several Provisions on Adjusting the Industrial and Commercial Tax Burden of Rural Commune and Brigade Enterprises," which clearly stated: In order to limit competition with large and medium-sized advanced enterprises for raw materials, the provision that commune and brigade enterprises are exempt from industrial and commercial taxes and industrial and commercial income taxes for two to three years in the initial stage of their establishment will be changed to differentiated treatment based on different circumstances. All commune and brigade enterprises that compete with large advanced enterprises for raw materials and have higher profits, whether they are newly established or existing enterprises, will be subject to industrial and commercial income taxes in accordance with regulations.
Both documents were stern in tone and detailed in their measures, and both were required to be published on the front pages of major media outlets. For a time, "cracking down on speculation and profiteering" became the most important economic activity of the year.
It was in this context that many individual businesses across the country were impacted, and places and people that already had influence at the time, such as Lu Guanqiu and Daqiuzhuang, were investigated by the investigation team.
The Eight Kings incident occurred under such circumstances.
At that time, Wenzhou was the region with the largest number of individual industrial and commercial households in the country. Nearly one-tenth of the country's individual businesses were concentrated in this area, and the Eight Kings were arrested as an example.
This incident dealt a heavy blow to the individual businesses in Wenzhou area, and it was not until three years later that these people were rehabilitated.
When it comes to reform and opening up, the South was indeed ahead of the rest of the country. When terms like "tertiary industry" and "unpaid leave" appeared in southern newspapers, the North, the most industrially important country, was slow to respond. This is probably why the North was less affected by this wave.
If these documents were followed, the industries in the post-war period would have suffered a devastating blow, but it was already the end of the year and nothing significant had changed.
Wan Feng secretly felt lucky that the industry in Wahou started a little late. Even if it had started a year earlier, it might have been wiped out by this wave.
Another point is that the projects they are working on are blank projects in Hongya County, and there is no situation of competing with state-owned enterprises.
Ever since the Lifang Rubber Shoe Factory went bankrupt, there has been no other rubber shoe factory in Hongya County, so the shoe factory has no direct conflict with local state-owned enterprises.
The things produced by the machinery factory are not produced in Hongya, let alone the entire Beiliao Province, so this problem does not exist at all.
Probably the only ones that can be considered to be competing with state-owned enterprises for profits are garment factories. After all, there are still bedding factories in Hongya.
Garment factories cannot expand any further, and they must be very low-key and again low-key and must not be caught as an example.
It can be seen that people should keep a low profile, at least before this document is abolished in 1987.
In the future, industrial development in the depression area will also need to be controlled. At the very least, it should not be too large-scale before 1989.
"Godfather, the entire construction industry in Hongya County has been shut down, and only these few construction projects remain?"
"Let's put it this way. One of the two shopping malls I own might have to be suspended right now, so while the decision hasn't been made yet, I'd like to make as much progress as possible."
"That doesn't seem right. If the project is shelved, the more progress you make, the greater the loss won't it be?"
Zhou Bingde smiled. "There are policies from above, and there are countermeasures from below. The county can't just stop developing. Even with macroeconomic regulation, some retained projects are still needed. Even if they are shelved, I estimate they will be restarted in two years, so there is no loss."
Zhou Bingde's judgment is still relatively reliable. Even if something happens and one of his projects is shelved, when this one is completed, the other one will also be in the thawing period, so he can just continue to work on it.
"I won't make it difficult for you to go back. I'll just settle the bill at 1,700. I'll send a car and a few people over right away to pick it up."
Wan Feng sighed and stopped bargaining. Although the profit was much less at 1,700 yuan, it was still a profit of several hundred yuan.
Zhou Bingde arranged two cars, and Wan Feng paid the bill and took the car back to Wahou.
Two cars loaded two and towed two, and there were two left, so we had to do it again.
Wan Feng handed the 10,200 yuan he earned from the sale of the six mixers to the accountant, and then told the old accountant Zhang Hai about the current situation.
Zhang Hai also looked solemn: "Then what should we do next?"
"We can't attend the Beijing International Fair, at least not this year. We can't make too much of a fuss to avoid attracting attention. It's better for us to quietly make a fortune in the next two years. For now, we'll just focus on the mature projects we have and not start any other projects. We'll wait until this trend passes. It'll be after 1983 at the very least."
As the saying goes, you have to clean up before the New Year. From now until the end of 1983, we are probably in the cleaning up stage, and we can only celebrate the New Year after we finish cleaning up.
Wan Feng was preparing for the New Year, but he didn't expect to be punished.
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