China's Economic Growth In The Financial And Social Cost Studies

Since China's opening up, the ratio of budgetary expenditure for social uses (BESU) over total budgetary expenditure increases rapidly when the ratio of total budgetary expenditure over GDP shows a downward trace, vice versa, that's one reason why China's social and economy keeps harmonious most of the time, meanwhile, the irrational factor of BESU is also one of the cause of economic unbalance.The aim of reasonable BESU policy during the economic growth triggered two aspects of consideration: In theoretical level, what are the paths of BESU's effect on economic growth, in theoretical level, how does the system of BESU change, and how does the BESU policy come into being? In this paper, a frame of "Social &Economic Growth (SEG)", which comprehends and extends the Keynes model and Endogenetic growth model, is put forward and employed to discuss the problems with institutional analyses and policy cases analyses.The consumption expenditure of BESU, one of the government's consumption expenditure, has a positive marginal effect on the equilibrium yield. In the long run, BESU has a positive effect on the total consumption, a positive effect on the rural consumption, a negative effect on the urban consumption. The unbalance of BESU, which means the lower lever of BESU in the more populous and more consumption-creative part, the rural area, is one of the causes of domestic consumption deficiency. In the long run, BESU has a positive effect on the civic investment and the deficiency of BESU is one factor of the deficiency of civic investment. Besides that, the influence of BESU on economic growth will be realized more and more from the human capital system, the human capital needs, human capital formation, human capital investment structure, revenue distribution and balanced regional development are the main influence mechanism.Social business has three providers: the government, non-profit organization, and private person, which cannot be thoroughly replaced by each other, the reform in the field of social business aims at the "reasonable" model. The political pressure in the policy process is one factor causing and lasting the change in institutions, while the fundamental mechanism of the change in institutions is the expansion of order, in which the evolutionary gaming happens. As far as the ordering is concerned, the government should neither perform the social engineering, nor obviate basic change, but prepare for it by raising its capability and making political innovation.Tax is one of the main capital resources of BESU, tax control mechanism which can bring back the fruits of economic growth to the social business field is the key factor of policy efficiency. However, the dominant function of fiscal capital should be embodied by introducing social capital, the rapidly growing capital need can be matched only by getting money from more channels with the help of public trust and public resources.