Han Heyuan: Why is China’s domestic consumption not long-term?

1comment 2019-05-10 13:33:03 source:Financial sector website Author:Han Heyuan Fengle seed industry earns 20% of the method to open!

Why is China’s domestic consumption not long-term? The root cause lies in: 1. In the rural areas, there is not much income, and a large amount of savings is needed for the elderly care. 2. Regarding urban residents, as stated in Fan Gang’s six wallets, high housing prices have had a serious crowding out effect on consumption.

Author: vice president of the Guangdong Provincial Association of Productivity and Han Yuan  

Abstract: Why is China's domestic consumption not long-term? The root causes are as follows: 1. In the rural areas, the social and economic rights of farmers are artificially suppressed, and there is no asset income enjoyed by urban residents, and wage income is lower than that of urban residents for a long time, and social security is extremely imperfect. There is not much income, and there is still a lot of savings for old-age care. 2. As for urban residents, as good asFan GangAccording to the six wallets, high housing prices have had a serious crowding out effect on consumption.

Author: political and economic Tianyi landlordHan Heyuan 

China is so passive in MY, the main reason is that domestic consumer demand is insufficient, and the root cause of insufficient consumer demand is related to the low disposable income of residents, and the low disposable income is related to the following two points:

1. First look at rural residents. Compared with the "nationals" of urban residents, Chinese peasants are clearly in a "wild man" state - that is, whether they are political rights or economic rights, they are artificially suppressed. As a result, the asset income is zero, and the wage income (migrant workers) is significantly lower than that of urban residents. In addition, social security is seriously inadequate. In the case of limited income, it is necessary to make old-age savings for the parents and themselves. This has further reduced the disposable income of rural residents.

2. As for urban residents, the crime isreal estatepolicy. Under high housing prices, a suite will have hundreds of thousands or even millions of down payment, and then thousands of thousands of months. In Fan Gang’s words, if you want to have a house of your own, you need to empty the savings of the “six wallets” of the parents, grandparents and grandparents of the couple. This will also mean a decline in the disposable income of these families, which means that for a suite, the consumption of six households is completely pure demand for consumption.

The problem actually reveals the path of resolution.

In order to solve this dilemma, the method is also simple:

1. For the purpose of equal rights in urban and rural areas, through the elimination of the urban-rural dual system, the peasants will be completely liberated in terms of social, political and economic power;

2. In terms of cities, the residents’ consumption power is liberated from house prices;

I think that as long as these two points are achieved, China's domestic consumer demand will definitely expand rapidly.

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Keyword reading:consumption Urban and rural

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