In the eventful autumn of 2008, the United States fell into a once-in-a-century financial crisis. Among the five major investment banks, Bear Stearns has been acquired, Merrill Lynch sold itself and was acquired by Bank of America, Lehman Brothers declared bankruptcy, leaving only Goldman Sachs and Morgan Stanley struggling to maintain. The global financial market is also facing no small challenge.

The subprime mortgage crisis should be blamed for this American storm. Property buyers borrow money from housing lending institutions to buy houses, housing lending institutions issue bond loans to investment banks, and investment banks find fund companies to change hands. When the buyer can't repay the loan on time, the latter three can't get interest, among which the investment bank is the most dangerous, holding a lot of bonds and facing losses. Investment banks are in a hurry, and insurance companies that provide insurance for investment banks have to pay their debts, and losses are just around the corner. In this way, the United States gradually fell into the economic abyss of its own making. The U.S. government stepped forward to rescue the market, but there was no spare capacity, so it had to save Bear Stearns, not Lehman.

In this big storm, we can see that China has not been greatly affected, just like a strong arrow bamboo in the storm. This has caused us to think about the comparison between the socialist market economy system and the capitalist market economy.

Marxism tells us that the insurmountable contradictions inherent in capitalist society, that is, the contradiction that the capital owners are getting richer and the working class is getting poorer and poorer, will inevitably lead to the shortage of effective demand and the relative surplus of production. This may be the root of the American financial crisis.

In capitalism, property owners or owners of capital and land rely on capital goods such as machines and land to seek high income; And the broad masses of proletarians, that is, workers and laborers, rely on their hands to seek labor income. In any case, the income created by hands can't keep up with the profits created by machines. The income of capitalists and landlords is thousands or tens of thousands of times that of ordinary workers. The rich are getting richer and the poor are getting poorer, which is the living reality of capitalism. Driven by interests, capitalists pursue larger-scale investment, but if consumption cannot keep up with supply, it will produce overproduction and lead to economic crisis. On the one hand, the capitalist society increases investment, which makes the production capacity rise continuously, on the other hand, it keeps squeezing the wages of workers, which makes the consumption capacity drop continuously, which leads to the inevitable contradiction.

Contradictions are universal. After experiencing two world wars and the economic crisis of 1929, western countries began to realize that while making profits, they must improve the income level and welfare level of the working class and provide sufficient consumption power for the market to support the expansion of reproduction. However, even this will not change this contradiction.

The contradiction of the same thing has different characteristics in different development processes and stages. When the industrial revolution greatly liberated social productive forces, labor efficiency was greatly improved, and commodities flooded the market. However, the income of the working class has not increased with the improvement of production efficiency, and they are unable to consume those redundant commodities. So those western countries began to look for markets in other regions. When the Asian and African markets were divided up, the great powers fought for the market, and the First World War broke out. Nowadays, capitalists have learned to squeeze more profits, issue loans and spend more money through different means and tricks. The subprime mortgage crisis is the result of reckless lending.

The particularity of contradictions also tells us that many contradictions and different aspects of each contradiction have different nature, status and function. Lehman suffered the biggest setback this time because its assets suffered huge losses in the subprime mortgage crisis, and it could not inject capital in time to replenish its capital. It is bound to fall like a mountain, setting the biggest bankruptcy record in history. Unlike commercial banks, investment banks do not absorb deposits and have very high requirements for capital turnover. The break of capital chain is a fatal blow, and it is easy to be acquired by commercial banks.

Nowadays, the US government rescues the market, and the state bank invests in the acquisition of investment banks, which is exactly a way of changing private ownership into public ownership, very similar to the Marxist idea of "concentrating credit in the hands of the state through state banks with state capital and monopoly". Western society once again thought of Marx after being hit hard. Marxism has once again attracted the attention of the world.

Let's take a look at the situation in China. We always adhere to the basic principles of Marxism, integrate theory with practice, put people first and do everything for the people. The lofty social ideal of Marxism has pointed out the road and direction for us, inspiring the proletariat to unite, overthrowing the capitalist system, establishing proletarian dictatorship, realizing public ownership of the means of production, vigorously developing social productive forces, establishing a socialist society, and gradually creating conditions on this basis, and finally realizing a capitalist society. We insist on proceeding from practice, seeking truth from facts and constantly promoting the development of Socialism with Chinese characteristics.

However, we also see that our income gap is gradually widening and our house prices remain high. Ordinary people earn money for a lifetime, save money for a lifetime and even can't afford to buy a house. Low income leads to insufficient consumption, and the improvement of productivity leads to a large backlog of goods. Although export can ease the pressure on commodities, low commodity prices often become the fuse of trade friction, and the government issues a large number of paper money, resulting in the current "excess liquidity."

Therefore, in order to maintain the sustained and healthy development of China's economy, we must base ourselves on the domestic market, improve the real income of the middle and lower classes, provide a large number of low-cost housing, free the masses from high housing prices and spend more money on consumption. This is the long-term solution.