After the Third Plenary Session of the Eleventh Central Committee, the implementation of the household contract responsibility system has greatly liberated rural productivity. Liuzhuang is faced with a painful choice: whether the land should be distributed to farmers, whether the factory should be distributed to individuals, whether to collectively pursue prosperity or to individually strive for a well-off society. Shi Laihe studied the communiqué of the Third Plenary Session of the Eleventh Central Committee over and over again and reviewed the development history of Liuzhuang. He came to the conclusion that division would be detrimental but unity would be powerful. Starting from his own reality, Liu Zhuang established the Agricultural, Industrial and Commercial Federation to implement "comprehensive management, professional production, hierarchical management, and joint production of rewards and punishments." Amid the controversy, Liuzhuang people used their own practice to prove that Shi Laihe's decision and Liuzhuang people's choice were correct. After Shi Laihe became the branch secretary of Liuzhuang Village, he always thought of the masses first in everything, and would rather suffer losses for himself than let the masses suffer, which became his habit for many years. In 1965, he was appointed deputy secretary of the county party committee, and the county began to pay him a salary. At this time, the distribution level in Liuzhuang was not high, so Shi Laihe handed over the wages paid by the county to the village and received work points like the villagers. After Liuzhuang's distribution level increased significantly, Shi Laihe gave up taking the village's distribution and took up the county's salary. Someone made a comparison of the annual income of Shi Laihe and Liu Zhuang with the same labor force from 1977 to 1990 for Shi Laihe.
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