Title: On the Expanding of Domestic Demand under the Perspective of Social Security
Abstract: Although demand for investment plays a positive role in promoting economic growth, consumer demand is considered as the most powerful and lasting driving force for stable economic growth. The impact of China's social security status quo is the most important reason for expanding domestic demand. China's social security coverage is quite narrow and hierarchical; the level of protection is limited. After meeting the basic needs of survival, average families choose to save their spare money instead of spend it dare not to spend more than the needs of basic survival. This is the reason accounting for the continuous growing of long-term investment demand and relatively declining in consumer demand. Improve the social security is a long-term mechanism to expand domestic demand. Under the circumstance of the world economic slowdown and shrinking external demand, China should further expand consumer demand. While increasing people's incomes, we must, at the same time, improve the social security system to relieve people's worries, enhance consumer confidence and expand domestic demand.
Publication Year: 2009
Publication Date: 2009-01-01
Language: en
Type: article
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