Cars go to the countryside to open up to stimulate domestic demand to become economic growth again


In the first half of the European debt crisis in the first half of the year and the repeated economic recovery of the United States, the domestic economy has also experienced a “winter period,” and all economic indicators have dropped significantly. The financial crisis in 2008 made China’s exports subject to heavy trade barriers, while the real estate market’s purchase restriction order led to the inability of fixed-asset investment methods based on infrastructure construction. In response, the government adopted economic growth based on stimulating domestic demand. mode. Since 2009, on the basis of the original 14 provinces and cities, home appliances to the countryside began to be promoted to the whole country, and the number of products has also increased from 4 in the past to 8 in addition to the previously launched TV sets, refrigerators, mobile phones, and washing machines. Secondary appliances to the countryside have added motorcycles, computers, water heaters and air conditioners. In October this year, in order to further stimulate consumption and expand domestic demand, the "car to the countryside" campaign is about to start, and this "car to the countryside" policy is expected to "expand" compared to before, after the state purchased micro-discharges of less than 1.3 liters for farmers. Passenger cars, etc., are given a one-time financial subsidy, and the new round of policies may extend the subsidy to 1.3 liters or less for small-displacement cars and heavy trucks.

In fact, no matter whether it is home appliances going to the countryside or car to the countryside, its essence is to stimulate economic growth by stimulating and expanding domestic demand. Earlier, Zhang Ping, director of the National Development and Reform Commission, pointed out that the demand for economic growth in the first three quarters of 2011 reached 101%, of which the contribution rate of final consumption increased from 32.7% in the same period in 2010 to 47.9%. Despite these years, in terms of consumption, China has been working hard to increase the income of urban and rural residents, speed up the construction of social security system, further improve the consumption capacity and consumption expectations of residents; actively implement the policies of encouraging consumption such as home appliances and cars to the countryside, and steadily push forward the project of Wancun Qianxiang Market. Efforts have been made to release rural consumption potential and the consumption structure has been continuously upgraded; the market price and product quality supervision have been vigorously strengthened, and the market order has been standardized. However, as far as China’s current economic situation is concerned, the external and domestic demand’s pulling effect on the economy is still in a relatively unbalanced state, and the role of investment demand and consumer demand for domestic demand pulling power is also uncoordinated. There are many reasons for this.

First of all, the growth of the income of citizens, especially farmers, is insufficient to support the consumption growth under the current consumption structure in China. In general, China's consumption structure has been upgraded at this stage, and it has shifted from a subsistence consumption structure to a preliminary well-off structure. However, there are still different levels of differences in the initial well-off structure, so from the microscopic point of view, the initial well-off consumption structure is a multi-type consumption structure, and the consumption levels of different groups of people are significantly different. This kind of multi-level consumption structure originates from multiple levels of national income, while the income growth of low-income urban and rural peasants is slow, and the labor value of laborers is suppressed to varying degrees. In addition, the increase in price levels in recent years has increased, and The increase in the actual income level of residents is constrained. Quite a few people tend to have low consumption propensity, and it is difficult to improve consumer demand.

Second, the lack of systems and policies that stimulate residents to increase consumer expectations, the people can only continue to save more and less consumption habits. On the one hand, in the face of market system factors that depress the value of labor, the government lacks a rational and effective intervention policy. The development system of China's market economy has ensured that the market mechanism in the labor market has an objective role. As a large populous country, due to historical reasons, China’s low-end labor resources are relatively abundant. Under the current industrial structure conditions in our country, this type of labor resources generally assumes a pattern of oversupply. On the other hand, the current state policies and related systems have weakened residents' confidence in the future to a certain extent, and residents' habits of tightening money bags are not easy to break. The current reform of education system and medical system does not match the institutional factors of national income growth, and does not match the progress of social security system reforms. Faced with excessive expenditures for education, medical care, housing and other projects, and the residents’ income The fact that the growth rate cannot keep up with the rate of increase in prices, most residents expect to see “expensive” for their future life. The long-established saving habits highlight that in order to protect their own future consumption, only the moneybags must be tightened, continuing the number 10 Years of more savings, less money and less spending habits.

From the point of view of the economic development model of Western developed countries, domestic demand is the main driving force for stimulating the economy, and the current situation in China is just the opposite. In this regard, on the one hand, we must abandon the traditional mode of economic growth, strengthen independent innovation, and enhance the quality of economic growth. First of all, from the perspective of maintaining our country’s due share in the international market, with the continuous improvement of the overall level of development of China's manufacturing industry, multinational companies are shifting the assembly and processing of final products to China, based on research and development, after-sales services in China. Management investment is on the rise, compete for talents, use resources, and directly serve its global strategy. Therefore, if China does not pay attention to independent innovation and does not strengthen incentives for independent innovation, it will be difficult to occupy the upper reaches of the international industry in the international market and form a competitive advantage for Chinese companies in the international market. Second, from the perspective of developing and increasing domestic demand and ensuring sustainable economic development, under the background of increasing economic globalization, both the external demand and the effective realization of domestic demand require the improvement of China’s overall economic development quality. On the other hand, starting from the source of distribution, it actively stimulates consumer demand. At this stage, the income level of the citizens, especially the majority of farmers, is insufficient to support the improvement of consumption levels in order to stimulate consumer demand. Therefore, stimulating consumer demand, in particular, effectively mobilizing residents' willingness to consume must begin with the source of income distribution. Specifically, first, we must adjust the structure of income distribution among the government, enterprises, and residents, increase the proportion of residents' income among the three, change the unreasonable state of depressing the pulling power value, and accordingly increase the number of employees in the industry. The income level from the source stimulates the rise of consumer demand. Second, we must pay special attention to raising the peasants' disposable income and raising the average consumer's propensity to consume. Due to the large number of rural people in China and the low level of per capita income, the increase in the propensity for consumption by Chinese residents is focused on increasing the income of farmers. Therefore, the state should further introduce various policies that are conducive to raising farmers' income on the basis of existing policies. Third, we must continue to study the impact of personal income tax on the driving force of consumer demand, such as tax thresholds need to be further improved in order to more effectively stimulate consumer demand.

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