The Study On The Influence Of Income Distribution On Consumption Demand

Entering the twenty-first century,China's economy has achieved steady and rapid development,which has attracted the attention of economists both at home and abroad.With the steady growth of the total macro-economy,the trend of slowing economic growth is becoming more and more obvious.The insufficient domestic consumption demand coexist with them.From the perspective of development,the insufficient domestic consumption demand will restrict the steady and sustained development of the economy.At present,with the fierce international trade friction and the unstable international environment,improving the level of consumption demand of residents is the key to promoting stable economic growth.Although the domestic and foreign experts and scholars have studied the influence factors of consumption demand from the income gap and the tax level,the distribution of income between labor and capital is one of the most important factors.On the one hand,income distribution has an impact on the distribution of purchasing power through its distribution results,and then has a direct effect on consumer demand.On the other hand,income distribution will affect the productive enthusiasm of workers through the incentive effect,and then indirectly affect the consumption demand from the effective supply side.The income distribution is an important support for the coordinated development of supply and demand,so we put the income distribution and consumption demand into the analysis framework of supply and demand linkage.If the relationship between them is not handled properly,it will directly restrict the increase of consumption demand and economic development in China.For now,solving the problem of income distribution is the key to improving the domestic consumption demand level.This is also the starting point of this article.On the basis of analyzing and studying the achievements of predecessors,this paper studies the mechanism of the impact of income distribution on consumption demand from the perspective of income distribution supporting the coordinated development of supply and demand.First,on the basis of related theories and literature about the impact of income distribution on consumption demand,this paper makes a brief summary and brief review.Secondly,from the current situation of China,the current situation of income distribution,the level of purchasing power of our residents and the consumption situation of our residents are analyzed,in order to describe the current situation in a more intuitive way,and give a more intuitive understanding.Subsequently,the impact mechanism of income distribution on consumption demand is analyzed.This paper holds that the income distribution affects the consumption demand from two aspects of supply and demand.On the one hand,the distribution of income influences the distribution of purchasing power,and then directly affects the consumption demand level of the residents;on the other hand,the income distribution influences the consumption demand indirectly through incentive effect.Nextly,we make an empirical analysis of the impact of income distribution on consumption demand.The results show that the pattern of income distribution has a significant positive impact on domestic consumption demand.At the same time,we conclude that the impact of income distribution on consumption demand is universal,which is also consistent with expectations.Finally,the article puts forward relevant policy recommendations for the existing problems.