Encourage consumption do not hurt economic growth

Encourage consumption do not hurt economic growth

Consumption by stimulating economic growth has become the consensus of regulation and control departments. Recently, the Ministry of Commerce are in the pipeline and the development of a number of policy measures to stimulate consumption, involving "TM", "commercial electricity industry with the price of electricity" and "consumer credit" and so on. It should be noted that these policy measures may be able to stimulate consumption in the short term impulse, but it is difficult to fundamentally enhance people's consumption level. Particularly wish to point out is that if measures to encourage the consumption of properly, it could lead to nothing, hurt economic growth. Among these, the encouragement of "consumer credit" is a very typical example. Statistics show that bank card payments in total retail sales of consumer goods accounted for 10 percentage points for each upgrade, you can bring about GDP growth by 0.5 percentage points. Therefore, to encourage credit card spending is often seen as a shortcut to expand domestic demand. Banks and other financial institutions under the temptation of high rebate, POS have strong mining market, absorb the credit card customers. Issuance of credit cards the size of China's recent rapid expansion. As at the end of the first quarter of this year, China's volume of credit card issuers for a total of 150 million. And credit card spending, overdrafts, credit card spending in particular, although able to provide convenient payment mode, it will be a great breeding ground for potential risks. Once the business cycle volatility, then as a means to stimulate consumer credit measures to expand the crisis will become a "trap" has been the outbreak of the Korean credit card crisis is a typical example. Recently the central bank also pointed out that half of China's overdue credit card the total amount of outstanding credit increased year-on-year increase of 133.1 percent, which caused the risk when fully alert. In fact, the proliferation of credit cards is not only a cause of social problems, began in November last year, the "home appliances to the countryside," have appeared resigned to buy cumbersome farmers, dealers low profits, regulatory "vacuum" and so on. At present, the policy of boosting domestic demand, although the point clear, but some financial investment and regulatory measures are not timely follow-up. With tens of billions of dollars compared the scale of investment funds, financial sector, "home appliances to the countryside", "TM" still less than the size of the subsidies, and subsidies for a number of sectors of the end constraints of the financial subsidies to live fully reflect the effects. For example, Commodities such as appliances and automobiles are the core of policy boost, but the unstable electricity supply systems in rural areas and commercial profitability of the limited space available, these financial subsidies to promote economic effects of the funds will be subject to greater constraints, can eventually lead to a multiple effect uncertainty of economic growth. Needs to be emphasized is that stimulate consumption is a far-reaching and systematic project, it is difficult to stimulate the adoption of a program on their effectiveness. Ministry of Commerce said that with the national income distribution policies, the increase in income and social security system to further improve, consumer confidence will be able to further growth. The remarks hit the spending power of China lags behind the key, but unfortunately, China's current pattern of distribution of wealth, as the status of the social security system were not sufficient to support the leap in the level of consumption. In recent years, the economic growth of the wealth created to the concentration of financial and business trends, the result is brought about by overcapacity and shrinking household consumption. Nowadays, not only to protect China's public pension system coverage is too narrow, lack of medical resources and other issues difficult to change in the short term, but also difficult to open people, "pocketbook" is the policy of price control in the more down under the more-yong. May 70 large and medium-sized cities housing sales price rose 0.6% in chain, or the previous month increased by 0.2 percentage points. Constraints of high prices has become a reality the great consumption potential obstacles, This problem is not the same business sector can solve their own power. 2009-6-29