Income Distribution Impact On Consumer Demand

Since reform,with development of economic, people’s income and living standards has also increased correspondly. however,widening income gap and inadequate consumption have been highlighted. Whether the widening income distribution affect consumer demand? What is Mechanism of Income Distribution’s impacting on consumer demand? answers to these questions have important theoretical and practical meaning, take YangQuan as an eample,analyzing Yangquan urban income gap’s impact on consumer demand have great significance.for Promote economic growth and social development.This paper describes the relevant theories of foreign income distribution and consumer demand, On this basis, article also analysis the mechanism of income distribution impact on consumption demand. Thus article form clear theoretical context.meanwhile,article describes in detail tconditions of the income distribution of urban residents and consumption demand in Yangquan. By empirical methods, Article regression analyze relationship of the income distribution and consumption gap,and get the conclusion:the distribution of income disparities can restrict the increase in consumption. For this conclusion, this paper propost two ways to resolve insufficient consumption:one is to narrow the income gap, and the second is to expand consumer demand.