A Study of Setting up the Long- term Mechanism to Raise Residents' Consumption Capacity

At the present stage the residents' consumption capacity is characterized as enormous potential,uneven distribution and weak consumption ability of middle class families. The main factors lie in the fact that the residents' consumption capacity is restricted by the slow growth of disposable income,the widening income gap between the urban and rural areas,weak income mobility,unreasonable structure of residents' income and imperfect social security system. In order to expand consumption demand and boost sustainable development of national economy,the long- term mechanism concerning enhancing residents' consumption capacity must be set up. It is concluded that increasing residents' income,narrowing income gap,boosting income mobility,optimizing income constitution and improving social security system can drive people 's consumption capacity in the long- term.