The Cause Analysis for China’s Consumption Rate Fluctuations and the Continuous Decline

The essential of china’s consumption rate is likely not a level problem because the series of policy, which the government applied over the last 10 years based on the view, stimulate consumption and expand domestic demand, were invalid. The key of China’s consumption rate question may be its long-term decline in volatility,which may be more worthy of study and attention. The paper draws different levels of causes from the analysis of the structure of consumption rate, per capita consumption rate, effect of consumption rate and the impact factor. Then, we propose to control the percentage decline of the resident disposable income in GDP by changing the ways of development, upgrading technology, improving the stability of employment and encouraging innovation in enterprises; at the same time, to control the consumer tendency decline by reforming our social security systems such as education, medical, pension, housing and so on.