"effective Demand" And "moderate Demand"

The explosion of Population, the shortage of resource and the pollution of environment are issues concerning the world, and "our economic growth is realized at an excessively high cost of resources and the environment" has become the most important issue of China's economic development. Wall Street crisis has sounded the alarm to the increasingly inflated bubble economy and people's endless desire for material goods. The effective demand theory has a profound influence on the running of the market economy. But it emphasis on the methods to cure the shortage of effective demand instead of people's demand in fact and does not contribute to the sustainable and stable development of the market economy with the change of the society, economy, and environment. Aiming at meeting the growing material and cultural needs and self-control to the excessive desire, the paper deals with the synthesis of the conception "Demand" from a perspective of entirety reason in the market economy.The paper start from the basic theory "Demand", followed by Say's Law, Marshall's demand theory and Keynes's law, it analyzes the rationality and far-reaching influence of Keynesian theory about Effective demand, and attempts to research the theory defects and the weakness of reality explanatory power. From the limitations on guiding the market's operation stably by the effective demand theory, combined with the actual evolution of the current market economy, the paper try to discuss "Moderate demand" from a perspective of entirety reason in the market economy and social ethics, and expect to examine the theory of demand by combining effective demand and moderate demand from the sustainable Scientific Outlook on Development. It tries to demonstrate the rationality of moderate demand by the combination of models and practical dates, and puts forward some inspiration for matching of moderate demand and the economic theory system of socialism with Chinese feature, moderate demand and the economic reality.