There are three reasons why a garage is shut down.

Environmental protection has become more and more stringent this year. Many companies have closed down, stopped production, reduced production, complained everywhere, and there are ghosts everywhere. Many small-scale bosses went bankrupt overnight. Local governments also faced contradictions. Grasping it directly affected GDP and affected taxes. Income, which affects employment, may also lead to social instability.

So why is the Central Committee going to punch out and do it? On the surface, it is to govern the environment, to return the people to a blue sky, to clear the rivers of the people, and to clean the air of the people. But this is not the main reason. The main reasons are the following:

1. Remove the spoilers of economic development - dirty and irregular informal enterprises

In the initial period of reform and opening up, this type of enterprise undoubtedly played a significant role in the economic development, solved a lot of employment, contributed a lot of taxes, and also contributed a lot of GDP. Since the economic development to date, domestic companies need to The transformation and upgrading will otherwise have no competitiveness in the entire international market.

But the transformation and upgrading all require companies to invest a lot of money. Where do these funds come from? Rely on borrowing money? Borrowing is only a temporary solution. In the final analysis, companies need huge profits to use profits to promote transformation and upgrading. However, the current situation is that the profits of the entire production-oriented enterprise are not high, mainly because the sales price is low.

Why is the sale price of the product low? Mainly because there are numerous market disruptors. A formal company needs to pay taxes, need to invest high environmental protection equipment costs, need to give employees full insurance, high R & D costs, good working environment costs, safe work costs, in order to ensure product quality and service also have to have Expensive management costs, so the cost of formal enterprises is high.

And an informal company or a workshop does not have these costs at all, and even if there is, it is a pitiful one. Such companies have a lot of costs because they are relatively cheap compared to formal enterprises, so they can obtain sales at a low price, and they can In order to obtain sales volume, enterprises can only lower prices, which leads to the low sales price and low profits of the regular enterprises. Therefore, this phenomenon is extremely unfair to the formal enterprises. Therefore, there will be formal enterprises will also try every means to reduce operating costs, there will be tax avoidance, there is no environmental protection equipment, etc., will also find ways to reduce raw material costs, management costs, because only such a formal enterprise there Living space.

Therefore, the economic development to the present stage is also a helpless move to cut down those informal enterprises or gradually transform all enterprises into regular enterprises, but also can eliminate some of the excess capacity and backward production capacity. In this way, the company's profits can be increased, allowing companies to invest more funds in research and development, transformation and upgrading, and providing more benefits to employees. Only in this way can the entire domestic economy enter a virtuous circle. Let our company have real competitiveness in the entire international market.

2. Improve the enterprise's employment environment

What is lacking for all companies is talent. It takes many years to train a good talent company. It requires a variety of training and training. It also requires a lot of money to be invested, but often the talents are trained well. It was hijacked away by other small businesses because small companies did not invest a lot of time and money in training talents. Digging people is the simplest, fastest, and lowest cost method. This also led to the unwillingness of formal enterprises to cultivate more talents, which is extremely unfair.

For the employed companies, everyone feels that the current employees are impulsive, unmoving, unwilling to leave, even if they do not leave, they are not willing to do a good job, and people are increasingly difficult to manage. Why does this happen? Mainly because there are too many informal companies in the society, I left here and there to find jobs.

Therefore, in order to change this phenomenon, the Central Government can only relentlessly deal with it, reduce the number of informal enterprises and change the phenomenon of the loss of brain drain. Although dealing with a lot of informal enterprises also reduces employment, it may also cause some turbulence in the community. However, this is no solution because only companies can sink down and cultivate more talents. To make employees less impetuous, the economy can get better and healthier development. Just like the war of liberation, there are many people who must sacrifice in order to build a new China. In order to build a good and healthy market economy environment, this pain can only endure.

3. Effectively increase government revenue

Why did the major ways for local governments to obtain fiscal revenue in previous years were selling land? Because the government lacks money and lacks income, it can quickly obtain more financial income by selling land, thus pushing prices up to astronomical figures, making people unable to afford housing and letting the entire community invest in real estate profits. On the other hand, it also obliterates the real economy.

Therefore, only the formalization of all enterprises is now started. Everyone pays taxes without tax evasion and does not need tax avoidance, so that the government’s fiscal revenue can be high, and it is not necessary to rely on land sales to obtain financial revenue subsidies. The government can better stabilize the society and better serve the enterprises and serve the people.

For enterprises, if all companies are formal, then everyone's costs will be similar, and there will be no tax evasion, tax avoidance, or stealing. Business owners can also put all their energy on the real development of the company. They don't need to worry about the days when they need to worry about their brains. For consumers, they will not buy products that are conscience.

Recently, there are many complaints about the current environmental protection issues. Everyone is also very surprised that the central government must vigorously develop the real economy and on the other hand desperately focus on environmental protection. In fact, this is not inconsistent. The central government needs to have companies that are “responsible, responsible, and conscientious” rather than companies that are concentrating on making money for their own interests. For enterprises that are concentrating on their conscience, there will certainly be no society in the future. Living space.

So we need to look at things in depth. We should not only look at the bad side. We must see more good things. Longer pains are better than short pains. We must support the government’s work. The Central Government always hopes that people will We can lead a good life, have a good natural environment, and have a good economic environment.