On The Impacts And Countermeasures Of Growing Income Distribution Gap To Consumption

The problem of income distribution is one of the hottest topic in our society.At present, Chinese income disparity faces the trend of gradually expanding, which mainly displays in the income distribution gap between urban and rural areas, different regions and different industries.The level of income and income distribution disparity are the main factors of influencing and deciding consumption.In recent years, Chinese residents' consumption have been wandering in a low level, and its main reason lies in? existence of our country's income disparity and its expanding trend.Widening income gap in China have a negative impact on consumption. The growing income gap leads to several results as following: the low final consumption,the gap in consumption, the fall of human capital spending, difficulties of consumer policy implementation, significant differences in consumer demand of different groups, difficulties of upgrade of the industrial structure. The mechanism of its impacts of big income gap is shown in: affect the propensity to consume through the disposable income of residents, affect the consumption structure through the industrial structure, affect the consumer groups through the age structure of population, affect consumer expectations through savings, affect consumer expectations through the social security, affect the ability of adding consumer through educational. In order to eliminate the negative impact of the gap of income distribution to household consumption, the following aspects should be concerned: firstly, raise the income level of low-income residents, and enhance consumer capabilities; secondly, improve the social security and tax system, and strengthen the bases of consumer confidence and spending; thirdly, accelerate urbanization and regional development, and improve the consumer identity, balance regional consumption; fourthly, make efforts to combat corruption and build a clean government, improve the consumption environment, narrow the income gap, improve the level of consumption and consuming capacity, and promote sound and rapid economic development.