Research On Establishing Long-term Mechanism Of Expanding Consumption Demand

Expanding demand and governmental expense is not only a resolution for economic crisis but also an increase for the post economic crisis, it raises people’s quality of life as a strategy for constructing well-off society. Expanding demand is the manifest demand for economics, is the need for transforming the economic development as well. Therefore, it will be significantly critical for how to expand the domestic demand.Domestic demand covers local people and government. As for expanding demand in this essay, is referring to expand demand among the people. Expanding demand is not only about quantity increase but to expand the portion of GDP. Portion will be focused in stead of quantity.In this essay, the theory about demand and its influence will divide into three types that are income elasticity of demand, debt elasticity of demand, and budget elasticity of demand. Upon the foundation of expanding demand, argues the necessity of expanding demand. It analyzes the barriers of influencing expanding demand. Meanwhile, in order to expand demand in a long, stable stage, from the capability of spending money and the desire. Therefore, to create a stable institution to make consumers a chance to be willing to pay. In the same time, this essay points out that there still needs to establish an institution to enforce the demand for expanding demand gradually. This essay has come out the resolutions for expanding demand. Gradual increase in income and inefficient division have caused the consumers unable to afford the debt. It’s the main barrier to influence consumers’ability to pay. The incompletion of social security and public utilities is the main barrier to affect expanse. Supply doesn’t match consumers need, illegal smuggling from merchants and companies violated the rights of the consumers. Consequently, in order to establish the institution, economic development must be completed. It is necessary to fasten the development of expanse debt. In order to make the institution a better system, it must fasten developing the social security system and public utilities to protect the rights of consumers and balances the whole situation.