Causes of and a Solution for the Inadequacy of Consumption Demand
Guo Li-hong
Abstract
Guo Li-hong
Abstract
Investment, export and consumption become three motive forces of economic growth. When the purpose of investment and export becomes weaker and weaker for economic growth, we must depend on consumption to pull economy. At present, the main problem is the lack of consumption demand,its cause exists in the discontinuity of consumption cycle, the fault of income and the scarcity of social insurance system. Therefore,by the adjustment of consumption loan policy,increasing people's income and decreasing the commodity price so on, it will spur the consumption.
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Investment, export and consumption become three motive forces of economic growth. When the purpose of investment and export becomes weaker and weaker for economic growth, we must depend on consumption to pull economy. At present, the main problem is the lack of consumption demand,its cause exists in the discontinuity of consumption cycle, the fault of income and the scarcity of social insurance system. Therefore,by the adjustment of consumption loan policy,increasing people's income and decreasing the commodity price so on, it will spur the consumption.
Key concepts: Consumption (sociology), Autonomous consumption, Economics, Scarcity, Investment (military), Commodity, Monetary economics, Consumer spending