The US Supply Side Governance And Enlightenment In The 1980s

Since the reform and opening,China's economic development mode is extensive development mode,this kind of development mode is at the expense of consumption of resources and environmental pollution,this way of economic development is unsustainable.After the 2008 financial crisis,the Chinese government carried out a series of economic stimulus plan,but the effect is not large,and brought a series of negative effects.The growth rate of Chinese economy has been slowdown.The output of the coal,steel,glass and other traditional goods has been more than we need,real estate inventory is too large to live,the ecological environment has been severely damaged,the air pollution has seriously affected people's life.Faced with the situation,China government begin to change the mode of economic governance,trying using the supply side reforms to remove the negative impact of the extentive development.China will realize sustainable development,through improving China's potential growth rate by supply side reform.TheUnited States also faced economic stagnation in the 1980's,the Reagan administration took a series of measuressuccessfully helped the United States get out of the quagmire of stagflation and realize economic recovery.For example,reducing tax,contoring money supply,supporting the development of small and medium-sized enterprise,investing more money to innovation.In this article,the paper analyzes the economic environment which the Unitated States faced through the chart analysis;discusses the reform measures taken by the Regan govenment and the positive impact and negative impact which the measures brought;Analyzes China's current economic environment and the measures taken by the China government.Through the comparison analysis method,the author compares the similarities and differences of the economic environment which the China and the America faced when taking the supply-side reform;the differences and similarities of the actions.taken by the America and the China.China's current economic situation has certain similarities with the American economy when it took suplly-side reform,the economic problem is no longer lack of demand,but structural economic problems.The supply-side governance of the United States has brought many lessons for China's supply-side reform,which will help China better carry out supply-side reform.By analyse the economic measures taken by the United States,and compared with the current reform in China,we get the following enlightenment:(1)we should adjust tax structure.(2)we should set the law timely,so that we can take the supply side reformaccording to the law.(3)we should deal with the relationship between the government and the market,the relationship between the central government and the local government well.(4)we should invest more to the innovation,and strive to improve the level of innovation.(5)we should take the welfare reform in accordance with national conditions,and prevent the income gap becoming larger.