Several Problems Concerning Prices

At about the time the Resolution on the Reform of the Economic System was promulgated by the Third Plenum of the Twelfth Central Committee of the Communist Party of China, there was a rumor making the rounds in society that as soon as the enterprises were restored to health the prices of commodities would be raised. Consequently, over a short period of time and in certain cities there was a buying frenzy with regard to a few commodities. There also were a few entrepreneurs who, after their autonomy had been expanded, did not attempt to increase their profits by improving management and business operations but attempted to reap greater profits by increasing the prices of their products. As a consequence, people in general became very concerned about whether or not commodity prices could remain stable, and they became afraid that the increasing of commodity prices would lead to a lowering of the standard of living. In several discussions in which I took part, many comrades have asked me to respond to a number of problems regarding prices. It would appear that there are quite a few comrades who harbor these questions, and maybe some doubts. Therefore, allow me to make a brief reply to these problems on the basis of what I must admit is my own personal understanding of the issues.