Multi-pronged increase in consumer demand

-Chen Lotte residents ' consumption demand has a low contribution to economic growth, which is an old problem in China's economic development. Since 1996, the macro-policy of boosting residents ' consumption demand has been introduced, such as lowering deposit rate and levying interest tax, but the consumption rate of residents has slipped from 45.8% to 35.4% in 2007.　　This shows that the increase in consumer demand, not only from the macro level of the total point of view, but also from the micro-level of consumers to study the internal factors affecting consumption in order to find a radical solution. The two major factors affecting residents ' consumption from the economic theory, consumers are rational, forward-looking, risk-averse, according to the personal life of the distribution of income, the current consumption and life cycle savings decision-making, to achieve the largest lifetime utility. In this theory, it is assumed that consumers are not only determined by income and expenditure, but also smooth consumption paths from free borrowing in financial markets without liquidity constraints. However, in reality, consumer income and expenditure are faced with greater uncertainty. On the income side, uncertainty is mainly due to the economic cycle, income fluctuation caused by job adjustment and loss of income from unemployment, while expenditure is faced with uncertainty of life expectancy, sickness and injury, pension, medical care, and children's education expenses and housing expenditure.　　At the same time, consumers may also face liquidity constraints due to imperfect financial markets, unable to freely borrow and smooth consumption. Therefore, consumers should not only make decisions on current consumption and life cycle savings according to the unbalanced distribution of their lifetime income, but also make decisions on current consumption and precautionary savings based on uncertainty of income and expenditure and liquidity constraints.　　If there is greater uncertainty about income and spending, consumers will reduce current consumption and increase precautionary savings; if there is no sound financial market, consumers will be subject to liquidity constraints and, when unexpected expenditures are incurred, will have to reduce current consumption and increase precautionary savings. Why the consumption rate of our country is lower according to World Bank data, in 2006, the consumption rate of the world's high-income countries was 62%, and the saving rate was 6.9%, while the consumption rate and saving rate of Chinese residents were 33% and 43.6% respectively.　　The consumption rate of Chinese residents is much lower than that in developed countries. The gap between China and developed countries is so large, mainly because, in the developed market economy countries, generally set up a perfect risk-dispersing mechanism, namely, medical, old-age, unemployment, the minimum living security and other social welfare and social relief system. This kind of perfect social security system, disperses the consumer to face the income and the expense risk, reduces the uncertainty degree, solves the consumer to worry about consumption. At the same time, developed countries have established a sound financial market often when there is no expected expenditure, consumers can borrow to smooth consumption.　　Therefore, in the developed market economy countries, the consumer's motive for precautionary saving is very small, which shows that the consumption rate is higher and the saving rate is lower in the macroscopic. And China is still in transitionStage。 In this respect, the social security system is transforming from the state-unit guarantee system to the state-social security system, not only emphasizing the individual responsibility of the residents, but also the lower coverage, the risk dispersion effect than the results of the school, the residents should bear the huge expenses of medical treatment, endowment care and education. Taking medical care and old-age as an example, the data shows that the proportion of government budget health expenditure is only 18.1% in 2006, and the proportion of personal cash health expenditure is 49.3%; by the end of 2007, the number of people participating in urban basic Endowment insurance and medical insurance in the whole country were 201.37 million, 223.11 million people, only accounted for 68.6% and 70% of the number of urban practitioners. Therefore, residents not only have to carry out life cycle savings, but also to significantly increase the precautionary savings. On the other hand, China's financial market is imperfect and credit consumption is developing slowly. According to central bank data, as at the end of the 4 quarter of 2008, China's credit card final credit total of 980.457 billion yuan, the total retail sales of consumer goods accounted for less than 10%. This has led consumers to face serious liquidity constraints, and it is difficult to smooth consumption through borrowing when there is unexpected spending.　　These factors have strengthened the precautionary saving tendency of the residents in our country and reduced the propensity to consume. It can be seen from the above analysis that the consumption rate of Chinese residents is low, because the social security system in the transitional period is difficult to spread the risk, and the imperfect financial market brings the liquidity constraint.　　At the same time, the instability of social security system and policy enhances the unpredictability of the residents ' future expenditure, which also increases the residents ' propensity to save and reduces the propensity to consume. To increase consumer demand, we should improve the consumption demand of residents, and in the long run, we should take the medical system reform as an opportunity to speed up the improvement of social security system. In April, the Ministry of Health announced the new health reform plan, and proposed to establish a basic medical and health system covering urban and rural residents, which will fundamentally solve the problem of "difficult to see a doctor and expensive to see a doctor".　　We should take this as an opportunity to speed up the improvement of social security system, build a sound social security system without leakage and make it complete, solve the problem of "expensive to go to school, buy a house" and so on, and reduce the worries of residents ' consumption. Second, we should vigorously develop the credit consumption market and relieve the mobility restriction of residents. At present, the development of credit consumption market in our country is slow, and the information asymmetry between the bank and consumers is an important factor in addition to the instability of income and expenditure expected by the residents.　　Therefore, we should further improve the personal credit investigation mechanism and personal trust evaluation mechanism, to solve the bank's lack of consumer real personal information caused by credit concerns. Third, we should strengthen the stability and predictability of social security system and policy. In the process of transition, the social security system and policy change greatly, which leads to the instability of the residents ' expenditure, so as to increase the precautionary saving to spread the risk. Therefore, the social security related system and policy, must establish the long-term goal, enhances the stability and the predictability.