Social Security System On The Consumption Of Urban Residents In China

With the impact of the financial crisis and the European debt crisis spreadworldwide, causing the building of the social security system to become one of thehot issues of social debate. China’s current social security, there are many problems,the construction of China’s social security system is still not perfect: the coverage islimited to protect the level of urban-rural dual structure, aging problem such that thesocial insurance fund shortfall, making the construction of China’s social securitysystem faces reality difficulties and challenges are quite grim. China’s economiclong-term, on the other hand, faced with the situation of insufficient consumptionreasons, including the continuing impact of the financial crisis caused by the nationaleconomic downturn, our resident conservative consumer attitudes and our socialsecurity system changes, and so on, employment, education, health care, housingprice changes caused by other aspects of the system change, the uncertainty isexpected to increase to the residents, thus affecting consumer spending. Domestic andinternational situation, cause we are concerned about the impact of the social securitysystem for household consumption, and thus be able to propose a viable socialsecurity system proposals, in order to boost consumer spending, which is the startingpoint of this writing.In this paper, from a theoretical and practical point of view expounded thehistorical background of the social security system theory and consumer theory,discusses in detail the relationship between the theoretical connotation. The paper firstdescribes the basic situation of China’s social security and consumer: description ofthe deficiencies in the current social security system in China, the relationshipbetween the problems in China’s consumer status and analysis, that social securityspending a positive correlation between the increased consumption of urban residents.Turn to the panel data of31provinces from1995-2010to empirical analysis of thisrelationship, the results show that the consumption of urban residents of China’s socialsecurity expenditure is significant, and by constantly revised model after discovery,China’s social security spending to the old-age insurance and medical insurance fundexpenditures on consumption of urban residents, especially in the social insurancefund expenditures. This shows that China’s social security system, the constantimprovement of the pension and medical help to stabilize the people’s consumption is expected to reduce consumer uncertainty, smooth income, which is also in line withour current society.Comprehensive analysis shows that the constant improvement of China’s socialsecurity system, stimulating the consumption of China’s urban residents. But forChina’s current social security system, showing lack of low overall consumer rates, aswell as China’s economic and social security spending and consumption, including thedifference between urban and rural areas, the reform of the social security system inChina is still a very long way to go, Therefore, in the course of this exploration, weshould be combined with the actual situation of the social security and consumer,should pay more attention to the implementation of the various policy proposals,guaranteeing fair pay more attention to urban and rural development, and pay moreattention to quality and efficient service, and pay more attention to sustainabledevelopment.