2003Unpublished venueRequires access

Discussion on the Relationship Between Income Gap and Consumption Demands

Zhou Hong

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Abstract

According to concerned consumption theories and analysis of current consumption situation, it reveals that income discrepancy unnecessarily results in the declining tendency of social consumption and the decreased level of social consumption, and the practice arbitrarily taking the rich ones' wealth to help the poor ones is not significantly helpful to increase total social consumption. It is revealed that low level of income is the reason for weak consumption in China; thus, to enhance the construction for the society of comfortable living, increase all Chinese people's income is the priority to keep a vigorous consumption.

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What this paper is about

According to concerned consumption theories and analysis of current consumption situation, it reveals that income discrepancy unnecessarily results in the declining tendency of social consumption and the decreased level of social consumption, and the practice arbitrarily taking the rich ones' wealth to help the poor ones is not significantly helpful to increase total social consumption. It is revealed that low level of income is the reason for weak consumption in China; thus, to enhance the construction for the society of comfortable living, increase all Chinese people's income is the priority to keep a vigorous consumption.

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Available abstract

According to concerned consumption theories and analysis of current consumption situation, it reveals that income discrepancy unnecessarily results in the declining tendency of social consumption and the decreased level of social consumption, and the practice arbitrarily taking the rich ones' wealth to help the poor ones is not significantly helpful to increase total social consumption. It is revealed that low level of income is the reason for weak consumption in China; thus, to enhance the construction for the society of comfortable living, increase all Chinese people's income is the priority to keep a vigorous consumption.

Key concepts: Consumption (sociology), Autonomous consumption, China, Economics, Permanent income hypothesis, Demographic economics, Consumer spending, Labour economics

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