Description: Recently, have you also felt the complaints of the people around you? What is the reason for this phenomenon that the purchasing power of ordinary people in China is declining sharply? Today, the author will unveil the mystery for you! Let us take a look at the decisive factors that cannot be ignored behind the "two highs and one reform"!
Body:
## 1. Overview of "Two Highs and One Reform".
First of all, let's understand what three keywords "two highs and one change" refer to. These three terms refer to "high prices", "high housing prices" and "wage reform", respectively, and these three issues have become hot topics in Chinese society in recent years. Their existence directly determines the purchasing power of ordinary people. There are three determinants of this phenomenon.
## 2. High prices: the cost of consumption upgrading
Prices are an unavoidable issue in the lives of ordinary people. In recent years, with the development of the economy, people's requirements for the improvement of quality of life have been increasing, which has led to consumption upgrades. At the same time, however, prices for various commodities are rising. The soaring prices of daily necessities such as food, rent, and medical care have put tremendous pressure on people's lives, and their purchasing power has naturally declined.
## 3. High housing prices: a heavy burden for living and working in peace and contentment
For two decades, China's real estate market has been on a hot trajectory, and high housing prices have become a common phenomenon. Buying a house is a huge expense for most people, and the pressure of down payment and loan repayment has become a heavy burden in their lives. In order to buy a home, many people have to cut back on other expenses, which will undoubtedly lead to a decline in overall purchasing power.
## Fourth, wage reform: the increase is less than expected
Wage reform has played a positive role in raising the income of ordinary employees, however, the results of the reform have not been satisfactory. While wages have increased, they have not been enough to compensate for these cost gaps compared to the rise in prices and house prices. What's more, some companies have reduced employee benefits in order to remain competitive, resulting in sluggish real income growth for ordinary employees.
## Fifth, the impact of comprehensive factors
In addition to the three determinants mentioned above, there are a number of other combined effects. For example, the increase in the burden of taxes and fees, and the increase in spending on education and health care have further suppressed the purchasing power of ordinary people.
In this regard, just looking at the "two highs and one reform" cannot fully explain the reasons for the decline in the purchasing power of ordinary people in China. We need to take into account various factors and provide more support and protection to the people from the policy level in order to alleviate the problem of declining purchasing power.