What is deflation? Suppose there is a small market with 100 people, circulating a total of 1000 yuan. Among them, 5 people hold 950 yuan in savings, while the remaining 95 people have a total of only 50 yuan in savings. These 5 wealthy individuals begin to wonder: why aren't the other 95 people consuming?

The main reason for deflation lies in the concentration of wealth. In such an extremely uneven distribution of wealth, stimulating consumption has no effect, because the income of those 95 people is barely enough to maintain a basic standard of living, leaving them with no extra money for consumption. Therefore, increasing the income of these 95 people is key to solving the deflation problem; only in this way can the market be truly activated and promote a healthy economic cycle.