A Study On The Governmental Intervention Mechanism Of Household Consumption In China

Household consumption is of social and external nature in terms of behavioral inter-relation, rather than an isolated individualistic behavior, and it is either rational or irrational in terms of the consumer's consciousness, and in terms of the inner link between consumption and national economy, has a significant impact on such aspects as the economic operation, economic growth economic structure and the quality of economic life, Therefore, the realization of the optimal household consumption mechanism, rather than relying solely on the market mechanism, so as to realize the benign cycle between household consumption and socio-economic development while avoiding the irrationality in consumer's behavior.The household, consumption intervention mechanism exerted by the government works through a given institutional system and certain patterns. The intervention by the government is functionally specific and intrinsically relevant. It involves the positioning of the government organizations and functions on the one hand and the influence of the governmental behavior on various affecting citizens consumption on the other hand, as well as the governments decision-making behavior and its application of different means in terms of economy, law, administration and exhortation, So far as the process of its development is concerned, the government's intervention mechanism is characterized by types and features of variety.The stimulation of household consumption is one of the means adopted by the Chinese government in given economic background to intervene households consumption, as well as a long-term strategy inevitably taken in the new cycle of economic growth. The stimulation mechanism should continue to be improved to give full scope to consumption stimulation in sustained economic growth with China's entry into WTO, full play should be given to households' consumption intervention by technological barriers in accordance with international rules and regulations, so as to meet the needs of internationally-oriented household consumption, and the government's intervention mechanism of consumers' behavior should be further improved in the course of globalization.