An Alternative Interpretation of Apple's Assets Exceeding Those of the U.S. Government
Data from the U.S. Treasury Department shows that the U.S. government currently has a debt of $880 billion, while its liquid assets amount to only $4.48 billion. In contrast, electronics giant Apple has no liabilities and holds assets worth as much as $46.3 billion.
After media keenly observed and disclosed this phenomenon, international financial experts unanimously interpreted it as adding fuel to the fire for an already anxious financial market. Although the cash holdings of the U.S. government are constantly changing, as the deadline for raising the government debt ceiling approaches on August 2nd, concerns about the prospects of the U.S. economy have arisen in the market. Some experts believe that the partisan struggles between the Democrats and Republicans are sacrificing not only the national economy but also the economic interests of countries around the world. The U.S. government is seen as being so impoverished and powerless that even Apple has more money than the government. It could be said that this news has caused more people to worry, feel anxious, or even mock the deadlock in negotiations over the U.S. debt ceiling and its impact on the U.S. and global economies. However, I have two different feelings or interpretations.
The fact that the U.S. government holds fewer easily convertible assets than Apple reflects a wealth mechanism where the country is poor, but companies and the public are rich. This wealth mechanism may very well be the fundamental reason why the U.S. economy maintains long-lasting vitality and remains a global leader. Within a certain period, society’s wealth is fixed; among the state, enterprises, and laborers, if the state takes too much, then enterprises and laborers will inevitably get too little, and vice versa. For a country's economy, however, vitality mainly comes from the micro-level entities of businesses and consumers. As long as businesses are wealthy, private capital and private enterprises will continuously invest and expand production. As long as the public is wealthy, consumption—the fundamental driving force behind the economy—will provide endless and inexhaustible momentum. This is the primary reason why investment and production in the U.S. mainly depend on private enterprises, and why the main engine of the U.S. economy is consumption, which accounts for 80% of economic pulling power. From the perspective of distribution, for a society, the wealth of the state does not represent true wealth; rather, the wealth of enterprises, especially the public, represents true wealth and provides a long-term stable and solid economic foundation. This is the significance of enriching enterprises and enriching the people.
Another feeling is that regardless of the purpose behind the standoff and stalemate between the two parties in the debt ceiling negotiations, there is no denying that the supervision of government borrowing and spending is indeed strict, and the constraints are indeed significant. The latest news indicates that Obama announced that both parties had reached an agreement to raise the debt ceiling. Imagine how seriously and cautiously this hard-won power to increase borrowing limits would be used, and how carefully each penny would be spent.
This is a great lesson for China. For many years, China's fiscal revenue has maintained a growth rate of over 20%, exceeding GDP growth and far surpassing the profit growth of private enterprises and residents' income. According to statistics released by the Ministry of Finance, in the first half of this year, the total national fiscal revenue was 5.687582 trillion yuan, growing by 31.2%. Based on this, the full-year fiscal revenue is projected to exceed the 10 trillion yuan mark. Such excessive extraction of fiscal revenue from the economy worsens the distribution relationship between the state, enterprises, and workers and is constraining the healthy development of our economy, weakening the momentum for economic development. What lies before us is the urgent need to carry out deep reforms. China urgently needs to take the path of enriching the people and enterprises to achieve prosperity and strength. The best choice at present is to significantly reduce taxes and fees.
Strict and effective supervision must be carried out on how the government uses and spends its fiscal revenue of up to 10 trillion yuan. How it is spent, where it is spent, and whether it is reasonable and legal should be transparent, fully disclosed, and subject to social supervision. The key lies in playing the supervisory role of the People's Congress. The People's Congress should truly supervise, not just go through the motions, and frequently say "no." Every penny of taxpayers' hard-earned money should be supervised well and genuinely held accountable to the people and the country.
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