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Why are small towns increasingly lacking development now?
It's actually just being drained dry.
When it was all physical stores before, in my hometown, I could spend ten yuan on a meal, and
that ten yuan would go directly to the shop owner,
who would then use that ten yuan to buy clothes at the neighboring store, and
the clothes store would use that ten yuan to buy groceries, so that ten yuan was always circulating in your small town.
Now, most transactions happen on platforms—ordering takeout, buying clothes, shopping—
even if the takeout is from a restaurant downstairs,
spending ten yuan, now only about seven yuan stays in the small town,
and three yuan is taken by the platform.
But the platform isn’t local; it’s based in Beijing, Shanghai, Guangzhou, Shenzhen, or Hangzhou.
That means your three yuan goes to those places, and only seven yuan remains in your hometown.
Every day, people order takeout, buy things, and the platform keeps draining money, so the flow of money in small towns is decreasing more and more.
Will the money from big cities ever flow back to small towns?
Currently, there aren’t many ways for that to happen, and the ways that do are very limited, so small towns are getting worse and worse.