Fiscal Expenditure Of Our Government The People's Livelihood, Research, And Consumer Relations

Since reform and opening up, China has made great achievements in economic construction. But China's ultimate consumption rate has been very low, which has not only seriously constrained the expansion of consumer demand and the upgrading of the consumption structure, but also seriously hampered China's sustained and rapid economic growth. At the same time, education,health care,pension,employment and housing,and other issue on livelihood has become prominent. In recent years, this desire has been asked the government to address more and more urgent. In this regard, our government has started to increase financial input on the livelihood improvement. Though numerous economists has analyzed the result of fiscal policy mechanism of action and the effect of extensive research, on the perspective of livelihood and the financial impact of consumption still relatively small. This paper attempts to research this problem from the government and the structure of total expenditure on consumer demand to start the mode of action. Through theoretical analysis and empirical analysis of the method, the government spending the livelihood and to explore the relationship between consumption analysis.This text introduces to the government structure expenditure on livelihood improvement, to the trends in consumer behavior, to spend policies on livelihood improvement and to people's income distribution effects of consumption situation. Analysis of consumption expenditure livelihood behavior is positive, from the dynamic point of view and the theory point of view building an expenditure framework between government expenditure on livelihood improvement and consumption demand. Make an empirical test on the dynamic relation between government expenditure on livelihood improvement and resident consumption demand by using the data from 1978 to 2009. The results showed that the total expenditure of the livelihood improvement have M-shaped on the consumer impact on the private consumption, and has to squeeze into effect. The government structure expenditure on livelihood improvement of education, health care, social security and employment impact on consumption than livelihood improvement in the long term impact of total expenditures. On the livelihood improvement of the proportion among the different expenditure items, the impact on consumption is different. Among them, education, health care, social security and employment impact is large. Therefore, the government expenditure on livelihood improvement is positive, in the line with our livelihood improvement and the positive role of fiscal policy. China's fiscal expenditure for the restructuring of livelihood improvement strategies found the theoretical basis to achieve to ensure and improve livelihood improvement purposes.