A Case Study On The Equitable Distribution From The Background Of Consumption Demand

Since the reforming and opening to the outside world, China has made outstanding achievements. Its economy has continuously growing quickly for decades, social wealth has been increased rapidly, comprehensive national strength has been enhanced greatly, and the living standards of the people have also been raised constantly. At present, China is in a critical period that opportunity of development and highlighting of contradiction are coexisted, which manifests in the following two aspects actually: one is the contradiction between economic rapid growth and social coordinate development and continuous growth; another is the contradiction between the masses'constant increase of public demand and serious shortage of basic public products and service. These contradictions directly affect the growth of residents'income and consumption demand. Inequitable income distribution and the great disparity of citizens'income lead the problem of shortage of effective consumption demand to protrude increasingly, which has become a serious problem that puzzles and constraints our country's economic growth.China's economic structure still remains as a dual economic structure. It is already a fact that the income of low-income residents in villages and towns increase slowly, the income gap between urban and rural residents, different regions, professions, classes becomes wider, and the low-income of a considerable number of low and middle-income residents result in the failure of supporting the effective consumption demand within China. In the"troika"which accelerates the growth of economy, we have to mainly rely on the investment and net export of foreign trade. However, the final purpose of economic growth and development is consumption. The key to solve the problem of structural contradiction of economic development depends on the equitable income distribution and the increase of the national ultimate consumption rate. This thesis consists of four chapters: first, it comprehensively states both home and abroad scholars'basic theories on equitable distribution of income and the internal relations between income distribution and consumption demand; second, the thesis starts with the analysis of the relations between income equitable distribution and consumption demand, it puts forward that the shortage of domestic consumption demand is the main problem that hinders China's economic growth and development currently. And the correlation between inequitable income distribution and wide income differential and the growth of consumption demand is negative, inequitable distribution of income will finally constraint the increasing of consumption demand and the development of national economy. The necessary countermeasure to solve this problem is the equitable income distribution, the raise of low and middle-income residents'effective consumption ability and ultimate consumption rate; third, the thesis further discusses the present equitable conditions of income distribution in our country, analyzes the basic situation of residents'income distribution, the main manifestation and cause of inequitable income distribution. It proposes the suggestion that the government should also give a full scope to the due function of macro-regulation and control during the process of income distribution. At last, the thesis, based on the three levels of income distribution, suggests the solution that how to increase the consumption demand through the equitable income distribution by the government.