China's Rural Residents Insufficient Consumer Demand Constraints Of The System

Since the mid-1990s, China's economic development process of the long-standing shortage of state finally ended, replaced by products surplus, the state of insufficient effective demand. In accordance with the Keynesian theory, under the market economy, consumer demand is less than the normal market economy, the government as the main macro-control, often focusing on the expansion of investment to adjust market supply and demand imbalance. China's economic theory and practice have proven: the lack of effective demand, through the expansion of investment demand to increase total demand can only achieve short-term economic balance; only the increase in consumer demand can be completely alleviate the lack of effective demand, the long-term balance of economic development.In recent years, China's rural people's consumption rate continued to drop, the relative standard of living of urban residents and rural residents increased slowly, the lack of effective demand in China is one of the main reasons. Meanwhile,with the low rate of consumption of rural residents, urban and rural consumption rate gradually widened the gap, although the standard of living of the urban and rural residents have improved, the gap between the living standards of urban and rural residents have been continuously expanded. The entire community in expanding gap between rich and poor is not conducive to social harmony, stability. The rural consumer market is not fully excavated, limiting the development of the domestic market demand is not conducive to the expansion of capacity of the entire market, if not promptly change, it will affect China's economic development's sustainability.In the social conditions of mass production, rural residents affected consumer demand factor is multi-faceted, and the system is extremely important factor. These systems of the main factors are the income distribution system, agricultural price, financial revenue and expenditure , and consumer credit. The income distribution system, agricultural prices are the basic reasons for low-income level, low levels of consumption, and the shortage of consumption demand of the rural residents. As the market-oriented reform process, the country's education, medical care, housing system reform has already started, but China's fiscal revenue and expenditure, consumer credit, long-term social security system tilt to urban residents, the state's agricultural and rural resident's support and protection system is not perfect. The heavy burden of rural residents is lack of social security, and the future uncertainty increase consumer spending, China's rural residents are in the low consumption level.