The Main Reasons Of China's Low Household Consumption Rate And The Main Means To Improve It

Household consumption expenditure is the main body of the final consumption. The over-high or over- low of its rate will be an obstacle to the ability and the level of the household consumption, even to the development of the state economy. The correct household consumption rate not only benefits the improvement of the household consumption level and the optimization and the upgrading of the consumption structure, and also benefits the over-all development of the individual, the well circumstance of the state economy.However, viewing from the facts of our country after the reform and opening, the final consumption rate and the household consumption rate have been lower by contrast with the main nations of the world. China is one of the countries with the lowest consumption rate in the world. The improvement of the household consumption rate will benefits the building of a well-off society in an all-round manner; The solution to a series of problems brought out by the scare of the domestic needs, and it is an important premise for long-term economy growth.The main reasons of China's low household consumption rate for a long time are that: the too-high rate of investment directly leads to the low final consumption rate and extends to the low household consumption rate; the overall low level of residents' income obstacles the final consumption expenditure and income-gap influence the consumption ratio; the instabilities of the income anticipation is becoming stronger and the expenditure anticipation is increasing. The products structure does not suit the needs of consumers; there are still some problems with the consumption environment that obstacles the expansion of the household consumption expenditure.The main ways to improve the household consumption rate andenlarge household consumption expenditure are that: improving the final consumption expenditure, making the investment rate lower; raising residents' income, especially that of low-income groups, among which the rural household constitute the largest one in China; building an extensive more complete social protection system, giving full play to the government's function in adjusting the income reallocation; restoring the enterprises to meet the needs of consumption upgrading; further advancing the consumption crediting and make consumer-friendly environment, eliminating the policies restricting consumption.