Ren Zeping suggested that the central bank print an additional 2 trillion yuan, establish a fertility encouragement fund as soon as possible, and have 50 million more children

China Fund News Taylor

Recently, Soochow Securities chief economist Ren Zeping posted on Weibo: as soon as possible to establish a fertility fund, the central bank printed 2 trillion yuan, with 10 years of society to produce 50 million more children, to solve the problem of population aging and low births, so that the future is more vibrant, and does not increase the burden of the people, enterprises and localities, we believe that now only this method is the most pragmatic and effective feasible.

Ren Zeping previously posted that China is facing the world's most serious "low fertility trap", and the current local policy is too small, because local governments have no money, individuals have no energy and no money, and the cost of education, medical care and housing is high. At present, the most important thing is that the central and local governments set up a "fertility encouragement fund" to fundamentally solve the problem of local governments having no money and excessive burdens on enterprises and individuals, and to support cash subsidies for birth families, individual tax deductions, corporate income tax reductions, housing subsidies, and the construction of nurseries, which are effective in OECD countries and can improve fertility rates.

Ren Zeping suggested: 1) Accelerate the establishment of a fertility encouragement fund to support families with children through the central bank's printing of banknotes. Drawing on the experience of developed countries such as Germany, the funds for encouraging fertility are mainly from the central government, and local governments have additional subsidies, and special agencies have been set up to establish a fertility encouragement system. At present, the most important thing in China is that the central and local governments set up a "fertility encouragement fund" to support the cash subsidies for birth families, individual tax deductions, corporate income tax reductions, etc., and finally the central bank will print money, do not increase the burden of local governments and enterprises, so that young people dare to give birth, can afford to be born, and can afford to raise. 2) Strengthen the construction of the second and third pillars of pension insurance, increase the tax incentives for the payment of the second and third pillars; promote the entry of pension funds into the market, expand the scope of investment in the first and second pillars, and increase equity investment. 3) Establish a mandatory nursing service system, learn from the nursing assessment grading standards of Germany and Japan, officially introduce nursing grading standards that meet China's national conditions, and incorporate nursing services into the social assistance system. 4) Learn from the experience of the German "Social Care Insurance Law", cater to the habit of "family pension" of the elderly in China, and support family care. Encourage relatives and friends to participate in nursing care and give policy subsidies, accelerate the construction of a professional talent training system, and encourage social capital to enter the pension industry. 5) Increase investment in education, improve labor literacy, and shift from population dividends to human capital dividends.