Research On The Impact Of Income Gaps Of China's Urban Residents On Consumption Demand In Transitional Period

Since more than 20 years of reform and opening-up, China's economy has kept growing at top speed. The changes of the income distribution system, break the old income distribution mode , carry out the policy that " some people get better off earlier ", bring along people per capita income level improve by a wide margin overall, but resident's income gap is widened further, Gini coefficient is rising constantly. At the same time the increasing degree of consumption expenditure of resident of our country obviously drops, the consumption rate is on the low side for a long time, it is an outstanding problem in the present China's economic development that the domestic consumption demand is insufficient. This text probes into the inherent mechanism that the enlargement of income gaps of urban residents in our country, which reduces the consumption demand of urban residents, from two respects of demonstration and theory. It points out the income distribution state has direct influence on the total amount level of consumption. Consumption demands of urban residents and its income gap present negative relevant relations. Increasing the income of the urban low income colony has a relatively high effect of increasing consumption. The widening further of income gaps of urban residents, has influenced the national spuring domestic demand policy. So, in order to increase the purchasing power of urban residents, the government should strengthen the regulation dynamics to income gaps of urban residents,put forth effort to start the consumption dynamics of the medium-sized income colony, increase the incomes of the urban difficulty colony, perfect the tax policy of the country and social security system, stabilize consumer's expectancy ,etc.