The Social Security And Private Consumption In China

In recent years, the quick growth of national economy in China is mainly depending on the great investment. The distribution of the expense is decreasing in the GDP shares, which is mainly because of the lower inhabitant expense rate. The insufficient expense demand has been the restriction for the continuous and rapid growth of the national economy; in the meantime, the remaining of the urban and rural inhabitants' savings is continuously increasing, which has made many historical records. From the respective of the social security, this article explores the deep reason of the above phenomenon from the relationship between the social security and the expense, based on the economic fact that the current domestic inhabitant expense demand is insufficient.The first part of the article shows the direct and indirect influence of the social security's building to expense, by western theory of consumption and welfare, which serves as the foil for the followings. The second part of the article, based on the international and domestic comparison about the effect of social security to expense, integrated with the changing tendency of the inhabitant expense, concludes the inner relation between the social security system and the inhabitant expense, emphasizes the effects of the social security system to the inhabitant expense from the four aspects of the range, level, project and the money raising of the social security, taking consideration of the subjective factors of the psychological anticipation and the risk consciousness. The last part of the article forwards the according measures and methods to the four aspects addressed in the second part of the article, in order to improve the psychological anticipation of the inhabitants and to urge the expense demand.