The Empirical Studies Of The Influence Of Social Security Expenditure On Residents’ Consumption

Since the reform and opening up, Chinese economy develop rapidly, but there are variousproblems behind the rapid economic development: investment overheating, excessivedependence on external demand, while domestic consumption. Especially in2008, financialcrisis highlights the problems of our country in the economic growth mode. Once the externalenvironment is affected by the shrinking demand for exports, will inevitably lead to domesticeconomic growth is unsustainable. Therefore, we must change the previously economic growthmode of relying on external demand, the key to change is to expand domestic demand. Themain reason for the lack of domestic consumption is that the residents on the uncertainty of thefuture expenditures, residents have generally no sense of security on the future, so residentsincreased savings to respond to future emergencies. The social security system is a social"safety net" and "stable", the improved social security give urban and rural residentswidespread insecurity, weakening the uncertainty of the future to improve the level ofconsumption.This article explains the theoretical relationship between social security and consumptionunder normal circumstances through the theoretical analysis of social security and consumption.At the same time, combining with the status of Social Security and consumer in GuangdongProvince, this article builds econometric model between Guangdong social security expenditureand resident consumption on the basis of life-cycle theory to examine the specific relationshipbetween the social Security of Guangdong Province and resident consumption. The study showthat the level of social security in Guangdong is still very low, the social security system is notperfect, the positive impact on Guangdong Social Security to expand the consumption of urbanand rural residents is not significant. Finally, on the basis of the analysis of the full-text, thisarticle proposes targeted policy recommendations for the problems of the existing socialsecurity.