Analyzing On The Reasons And Measures Of Inhabitants' Expense Demand Insufficiency

Since in 1998, Chinese government has successively adopted a series of positive financial and monetary policies. But seen from their final effects, the expense demand insufficiency problems couldn't be solved at all. At present the demand insufficiency problems are still serious, and become the serious barrier to Chinese economical healthy development. Discussing its reason and seeking solutions is the economy researchers' responsibility.This article based on explaining the definition of the expense demand insufficiency, and using the western principles about expense function theory, analyzes five reasons causing inhabitants' expense demand insufficiency: The inhabitants' incomings are low and grow slowly; unequality of incomings are enlarged; the consumers' anticipated expenditures increase; the social security system is imperfect; the supply and demand structure is asymmetrical. Among them the low incomings and growing slowly of incomings and enlarged incomings unequality are the basic reasons. According to this analysis, the article proposes some consuming policies and suggestions of increasing people's incomings, reducing the incomings unequality, providing more public products, perfecting social security system, improving supply structure, and bettering expense conditions.