Peng Wensheng: digital economy combined with aging population may be a low desire Society

category:Finance
 Peng Wensheng: digital economy combined with aging population may be a low desire Society


Peng Wensheng, chief economist and head of Research Department of CICC.

With the development of digital economy, one view is that China is entering an aging society. With the compensation of machine and artificial intelligence for labor force, the aging problem of Chinas population may be alleviated.

Can digital economy solve the problem of population aging? On the supply side, artificial intelligence will boost labor productivity, at least partially offsetting the decline in the number of workers, Peng said. However, from the demand side, machines have no consumption demand and can not consume for people. What promotes the progress of human society is actually desire. The digital economy era, combined with an aging population, may be a low desire society.

He takes Malthus population principle as an example, and the population growth of human beings is geometric, far faster than that of food. The reason is that human desire is infinite. In this regard, machines can not replace human beings, and digital economy can not solve the aging of population.

There is also a view that in the future, a large number of labor jobs will be replaced by machines, and there may be a wave of unemployment in society.

Will this happen? Can digital economy change the pattern of income distribution? Peng Wensheng believes that this depends on whether machine replacement or machine empowerment. If machines replace people, the return on capital will rise and the return on labor will decrease; if the machine empowers people, it may increase or at least not damage the remuneration of workers. Taking China and the United States as a comparison, he proposed that the digital economy in the United States is more machine replacing human, and Chinas digital economy is more machine enabling people, and distribution is beneficial to workers.

How to understand this conclusion? He explained that because the prices of machines are consistent in the international market, the labor cost in the United States is high, and if machines replace labor, there will be more profit margins in the United States. In Chinas current development stage, the digital economy is more machine empowerment, relatively friendly to workers, such as express delivery, takeaway, special car driver, video anchor and other industries are machine empowerment.

The traditional economy is competitive. There is an apple on the table. If I eat it, you wont have to eat it. But the digital economy means that when I watch the video, it doesnt affect the cost of watching the video. Thats noncompetitive. He said that non competitiveness is the premise of the expansion of the digital economy, and the benefits of scale are generated. Productive forces have relations of production. The question is who owns the data? Peng Wensheng pointed out that data property rights are exclusive. Therefore, the development of digital economy in the future should balance the relationship between productivity and production, and the relationship between non competition and exclusiveness. The digital economy can improve our lives and change the mode of economic development. At the same time, it also brings some risks and challenges. Peng Wensheng said: internally, the ownership of data raises concerns about the protection of personal information; externally, as a factor of production, data is also the main battlefield of the future international governance order game. Therefore, digital economy is not only an economic problem, but also a multi-level issue of social governance and international politics. Source: Southern Metropolis Daily Author: Intern Wang Fan, Nandu Reporter Lin Fangzhou, editor in charge: Wang Xiaowu_ NF

The traditional economy is competitive. There is an apple on the table. If I eat it, you wont have to eat it. But the digital economy means that when I watch the video, it doesnt affect the cost of watching the video. Thats noncompetitive. He said that non competitiveness is the premise of the expansion of the digital economy, and the benefits of scale are generated.

Productive forces have relations of production. The question is who owns the data? Peng Wensheng pointed out that data property rights are exclusive. Therefore, the development of digital economy in the future should balance the relationship between productivity and production, and the relationship between non competition and exclusiveness.

The digital economy can improve our lives and change the mode of economic development. At the same time, it also brings some risks and challenges. Peng Wensheng said: internally, the ownership of data raises concerns about the protection of personal information; externally, as a factor of production, data is also the main battlefield of the future international governance order game. Therefore, digital economy is not only an economic problem, but also a multi-level issue of social governance and international politics.