Middle-income And Consumption Study

Income distribution and consumption of economics have always been the most attractive parts of the economics study, it is a real economic and social problem accompanied by three decades of China's reform and opening up. The problem of widening gap between incomes and weak consumer market brought to the forefront from the general public to the importance of national government, the researchers from the grassroots to the well-known economists are all constantly exploring the issue, it has become one of the hottest topics of our country's economic and social life.This article make middle-income and consumption as two points of the view to start, first brief foreign classical consumer theory and the literature of domestic consumption and middle-income earners. On this basis, analysis of correlation between consumption and domestic demand, and thus on study the relationship between income and consumption started. After studying middle-income earners theory, I test the theory above from the empirical aspects, the last to make the conclusions and prompt workable proposal.From international experience, the social structure mainly made by middle-income people is the ideal form of society. From the perspective of economic development, consumption can powerfully promote economic sustainable developing, and it can not be replaced. The middle-income people are the most stable consumer groups. In high-income earners,middle income,low-income three, high-income earners have low propensity of consume, while the consumption of low-income people is weaker.Expanding the proportion of middle-income is important. It will help to expand consumption and stimulate economic growth; it will help to maintenance national economic safeguarding and social stability, and building a harmonious society; it is also a requirement to achieve the common prosperity of the whole society. However, China's middle-income groups are still unable to take shape. Therefore, we need to work through continuing in-depth reform to the income distribution system,industrial upgrading,the development of modern service industry and other channels to expand the middle-income ratio, making to development economic and social health,rapid and steady.