| China’s economy from the last century since the eighty’s reform and opening up have achieved the average annual growth rate of 9%——the growth rate of the miracle. Per capita income level from 1995 to 2014 have completed a 6.73 fold increase. Most people in the country have basically achieved the historical transformation of the standard of living. However, from the perspective of the structure of the national economy, China’s economy has a lot of structural problems. Its main performance in the national consumption tendency is very low, but the national savings tendency is very high. This national propensity to consume is low and the propensity to save is higher than that of the international level and the developed economies. From the economic data in recent years, China’s economic growth rate is declining.The effect of the final consumption expenditure and capital formation to pull the economic growth is more and more weak. Net exports of goods and services to pull the economic growth even in some years was negative. From the data of the growth rate of industrial enterprises and the construction industry to increase the profit, the profitability of the enterprise is also weak. This is enough to explain that the total demand of our country’s economy is weakening. The unreasonable economic structure may be one of the reasons for the weakening of economic growth rate. Based on this, how to improve our country’s consumption level will be a major problem. This paper from the perspective of the pension insurance system to promote the growth of consumption will study whether China’s pension insurance expenditure can promote the growth of China’s consumption level. In this paper, we will give a theoretical basis of the mechanism of the effect of pension expenditure on consumption growth, and the empirical test of macro and micro data to verify the effect of the consumption level. Finally, the policy recommendations based on empirical results will be presented. |
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