On how to improve our residents' spending power _ to write papers Network

Write papers Network: Abstract: With the income gap is widening, the different consumer groups, consumer and investment tend to have greater change, understand the current composition of the consumer sectors of the population, consumer psychology and behavior, for Economic development, enhance the comprehensive national strength will play a a role in the reform and opening up, China's foreign residents have also been thinking of the impact of propensity to consume has changed greatly, but compared with other countries still lags behind. consumption patterns not only a country's Economic growth has an important role in promoting , also have far-reaching social and Economic impact of sustainable development, this paper some of the analysis of the factors affecting China's consumption, exploring the consumption pattern of China's national conditions, to improve our people's consumption capacity.

Keywords: purchasing power draw on foreign experience

First, the status quo of China's consumption capacity
Into the marginal propensity to consume propensity to consume and the average propensity to consume. The marginal propensity to consume is to increase consumer spending accounts for the proportion of revenues to increase spending. Average propensity to consume is the proportion of consumer spending to income of urban residents' consumption of specific ratio, 40% of 2008 expenditures for the purchase of food, followed by expenditure on transportation and communications and education and culture from the trend, the proportion of food expenditure compared with a decline in 2000, while living in a relatively large increase in transportation and communications.

"According to residents in recent years, the number of characteristics of food expenditure, consumption structure can be divided into three phases: 1993 and 1994 into the first stage, this stage is greater than the 0.5,1995 Engel coefficient for the first year to 1999 the second stage, this stage was a clear downward trend Engel coefficient, between 0.4-0.5, between 2000 and 2001 for the third phase, which is lower than the Engel coefficient of 0.4, which clearly distinguish three stages have different features, fully that changes in consumption structure. "[1] is driven by consumption growth in national income growth and income levels. consumption rate so low, the first is that consumer growth was slower than Economic growth.

Second, the impact of increased spending power of the problem
(A social security system, the impact of differences in consumption patterns
Social security is the government's primary means to achieve social justice is one of consumption of the booster. If you want to improve people's spending power, residents should remove the uncertainty of future revenue generated by a sense of instability, so that consumers establish sufficient confidence, it should accelerate the establishment of market Economic system to adapt to the social security system, and gradually expand the coverage of the social security system. If the social security system is flawed, residents propensity to consume would fall. To this end, China should gradually improve, including housing, medical care, unemployment, pension, etc., the social security system, to reduce the residents of the uncertainty of future expectations, lifting people worry about these issues, and gradually build consumer confidence.

From developed countries, due to social security and improve the social credit system, people's consumption Xinxin Zu, people get ahead of consumer attitudes continue to strengthen, the rapid development of consumer credit. From developed countries to see the consumer a higher rate of consumption on economic growth in countries with higher contribution rate, usually higher levels of average income of its residents, the smaller the gap between income distribution, income and consumption form a virtuous circle between Different income levels of consumer spending showed a different structure. Overall, residents generally developed in the food, clothing, a smaller proportion of the expenditure on education, while housing, transportation, communications and entertainment in a larger proportion of the expenditure, while developing countries are in the food, health care and education spending a larger proportion of the consumption structure there is a certain gap with developed countries.

(Two different income levels, the impact of the consumption structure
In recent years, with the income gap is widening, China has formed a high, medium and low levels of consumer groups, high-income groups to enjoy the entertainment, education and consumption-based, food consumption, the lowest percentage of revenue expenditure, in low-income groups in the food, clothing, housing, transportation, consumer spending with more respect. With the widening income gap, the proportion of food consumption and consumption levels is also a great difference.

For a long time, China's national income structure of the main problems is that in relation to national income, the proportion of low income workers, which led to the main reason for the low rate of consumption from the consumption structure of the region, consumption of rural residents increased significantly slower than the city, is specifically expressed in the consumption of rural residents 'consumption levels are significantly lower than urban residents of rural consumption, the reason behind the city, mainly due to farmers' income growth slower than the growth of income of urban residents.

Third, China's measures to improve the ability of the consumer
(An increase income, improve the consumption potential
Level of income is the most direct impact on consumer demand, the most fundamental factors, and ultimately determines the people's consumption level and consumption structure, so in the national economic growth, further improve the income level of urban residents as much as possible to reduce the different income the income gap between classes, in particular, to ensure that lower-middle class income levels will not decrease, raising the employment rate in the promotion of rapid economic growth while raising the employment rate and reduce unemployment, provide the basis for the expansion of consumption and the conditions to stimulate to expand consumption. Links to free download http://www.hi138.com
(B to strengthen the regulation of residential housing, lower housing prices
Expand the housing consumption of urban residents housing, is leading the trend of Chinese consumption spending hot, especially with the development of urbanization, a large number of rural population into the cities, further broadening the demand for housing space. "Residents to purchase housing, and housing consumption will lead to closely related to household appliances, furniture and other consumer goods, and its role in stimulating consumer is very significant, but far beyond the income capacity of the high prices, but inhibition of the residents of housing consumption, so that residents can only watch the room disappointed, and will not be buyers into real consumer demand should be said, high prices have become an obstacle to the expansion of the most important consumer factor to expand the consumption of urban residents, high house prices must come down. "[ 2]
(C material consumption and spiritual development of consumer co-
"As people's living standards improve, people in the people's education, culture, entertainment, healthcare, tourism, communications and other help to improve physical and mental qualities of the spirit of the increasing demand for products, particularly in the eastern region of rapid economic development , spirit consumption has become a consumer product life, the most potential for growth and highlights the most promising consumer based on the case, should the spirit of expanding consumer product consumption as a basic point that the Government should take concrete policy measures, development associated with the consumption of social undertakings, support mental production departments to produce more and better spiritual products to meet the growing demand for cultural products. "[3]
Conclusion
Since reform and opening, China's national economic development and scored remarkable achievements, greatly improved productivity, an adequate supply of goods, although the total consumption in recent years to maintain a high growth rate of consumption on the role of economic growth has gradually increased, but the low rate of consumption, consumption growth is relatively slow, the economy is still the major structural problems with the developed countries, a relatively stable level of consumption rates compared to developing and transition countries has emerged in recent years the level of consumption rate more significant decline in the tendency to some extent explain the process of development, consumption rate of decline in the level of objectivity and a certain stage.

References:
Yu Jianguo the <<and Economic Growth in China's consumer research>> China Planning Press, 2009 edition

Note:
[1] <<Analysis of the consumption structure of urban residents in China>> <<China Information News>> August 2003
[2], [3] <<Analysis of Chinese consumption, trends and policy options>> China Galaxy Securities, the German Court, the new law Chang Song Guoxiang

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