An Research On Consumption To Sustain The Boost

Consuming, investing and exporting are three drives for one country’s economic growth. According to the Marx’s principles concerning the two categories of social production,the increase of consuming leads to the increasing of the means of consumption,which then leads to the increase of the means of production. In this way, the scale of social production would increase and the economy would grow. In 2008, the Financial Crises that begins in the US soon swept every place in the world and China’s economy also suffered. Faced with the economic difficulties,especially the one of decreasing export,Chinese government took steps and solved crisis by increasing domestic consumption and hence China’s economy didn’t go down so much. The measures is mainly about investing,combined with increasing the consumption by lowering the interest rate,and continuing increasing the salaries by administrative means. With these measure,China has successfully gone through the economic crisis and has successful enlarged the domestic demand. But, we should also be aware of the problems that resulted from the unbalance between investing and consuming,including citizens’ misery,panic and confusion when facing the skyrocketing CPI. All of these should bring people to reflect and to seek the instructions from the theories,and to put these instructions into practice to make some improvements.Based on a unique perspective, this essay analyses the moving process of social total capital and elaborates the realisation of the social total capital reproduction, from the angle of Max’s two major proportional relations. Accordingly, this essay concludes that in the post-industrial society, while the social division of labor deepens unceasingly, the degree of production socialization improves constantly and the trend of economic globalization enhances continuously, expanding the consumption is an effective way to promote production and realize the urgent development. In the meantime we should not neglect that, the consumption rate of China is not high, and the effect of consumption to boost the economic growth is not obvious.Based on the analysis of China’s current situation of the final consumption rate and the citizen consumption rate, and also from the comparison with the world average level, this essay discovers that China suffers from an extremely low final consumption rate and citizen consumption rate, which severely influences the healthy development of the economy.Through longitudinal comparisons with China’s historical data since the reform and opening, this essay finds that the persistent falling of the ratio of consumption is the cause of the final consumption rate changes.Then this essay analyses why China’s citizen consumption rate is comparatively low theoretically, and concludes that the low citizen consumption tendency is the main reason. With regard to the cause of such low citizen consumption tendency, it mainly includes Income distribution policy lags, the imperfect economic system reform and social security system, the increase of the uncertainty in citizen income and expenditure expectations, the influence of consumption conception,the low consumption rate of countryside citizens, the incomplete consumption environment, etc.In the end, the essay proposes some policy suggestions concerning a series of problems discussed in previous chapters, which could hopefully improves the current situation in China, with such a terribly low citizen consumption rate, and truly depends on consumption to sustain the boom.