As one of the "troikas" driving economic growth, the steady growth of consumption plays a pivotal role in the stable operation of the economy. However, despite the continuous macroeconomic recovery of the mainland, the foundation for the recovery of the consumer market is still fragile, and the phenomenon of some residents' weak willingness to consume is particularly prominent. Liu Shijin, former deputy director of the Development Research Center of the State Council, pointed out that the main reason behind this phenomenon is that some residents have worries about the future and lack the confidence and confidence to consume. In order to effectively stimulate residents' consumption potential and achieve the lasting release of endogenous economic power, it is necessary to solve residents' consumption concerns from the source and build a set of targeted, long-term and stable consumption promotion mechanisms. The following will be discussed in depth and the corresponding policy measures will be proposed.
1. Analyze the multi-dimensional causes of residents' consumption concerns
1. Income stability concerns: The uncertainty of residents' expectations for future income is a key factor affecting consumption behavior. Against the backdrop of global economic fluctuations, industrial restructuring, and increasing pressure on the job market, some residents are worried that their existing jobs or sources of income may be impacted, so they tend to increase precautionary savings to cope with potential risks, which has suppressed current consumption.
2. Imperfect social security system: Although the mainland has made remarkable progress in the construction of the social security system, there are still shortcomings in terms of coverage, security level, transfer and continuity. In particular, the pressure of expenditure in the fields of pension, medical care, and education has forced residents to set aside a large amount of funds for emergencies when facing major living costs, limiting the investment in daily consumption and development-oriented consumption.
3. **Housing prices and debt burden are too heavy**: High housing prices and mortgage repayment pressure have become the "invisible killers" of many households' spending power. Housing spending crowds out other areas of consumption, and long-term loan repayment pressures make residents more cautious in other consumption decisions. In addition, the overuse of consumer credit may also lead to excessive indebtedness of residents, further dampening the desire to consume.
4. **Consumption upgrading and consumption concept transformation lag behind**: With the development of social economy, consumers' demand for goods and services has gradually shifted from satisfying basic life to pursuing quality, personalization and experience. However, due to information asymmetry and conservative consumption concepts, some residents have failed to adapt to the trend of consumption upgrading in a timely manner, and their willingness and ability to consume have not been effectively released.
2. Targeted policy suggestions: Eliminate worries and boost consumer confidence
In view of the above-mentioned consumer concerns, precise policies should be formulated and implemented from the following aspects to eliminate residents' worries and enhance their willingness to consume:
1. **Raising household income and income expectations**:
- **Strengthen employment support and vocational skills training**: Improve the quality of employment and the ability of workers to resist the risk of unemployment by optimizing labor market policies and providing employment assistance, career guidance and skills training services.
- **Improve the wage growth mechanism**: Encourage enterprises to establish a normal wage growth mechanism linked to economic efficiency and labor productivity, so as to ensure that residents' income grows in tandem with economic development.
- **Improve the tax adjustment mechanism**: Optimize the individual income tax system, appropriately reduce the tax burden of low- and middle-income groups, and encourage consumption through preferential tax policies, such as temporary tax reductions or tax refunds for specific consumption areas.
2. **Improve the social security system**:
- **Expand social security coverage**: Gradually include flexible workers and workers in new forms of employment into the social security system to eliminate the "blind spots" of social security.
- **Raise security standards and benefits**: Adjust social security benefits in a timely manner according to the level of economic and social development, especially the reimbursement ratio of pension and medical insurance, etc., to reduce the pressure on residents' spending in key areas of life.
- **Promote the national co-ordination and transfer of social security**: Break down regional barriers, realize the smooth transfer and continuation of social security rights and interests across regions, and enhance residents' mobility and consumer confidence.
3. Regulating the real estate market and optimizing the debt structure of residents**:
- **Adhere to the positioning of "housing for living, not speculation"**: Implement differentiated housing credit policies to curb speculative housing purchases and ensure the stable and healthy development of the real estate market.
- **Developing the rental market and diversified housing supply**: Increase the supply of public rental housing, encourage social capital to participate in the construction of rental housing, and meet the housing needs of different levels.
- **Guiding rational consumer credit**: Strengthen the supervision of the consumer credit market to prevent excessive borrowing, and at the same time promote inclusive financial products to meet the reasonable consumption needs of residents.
4. **Promote consumption upgrading and consumption concept renewal**:
- **Optimize supply structure**: Encourage enterprises to innovate and provide more high-quality, personalized, green and low-carbon goods and services to meet the demand for consumption upgrades.
- **Strengthen consumer education and information guidance**: Popularize consumer knowledge through various media platforms, advocate rational consumption concepts, and help residents understand and adapt to new consumption patterns.
- **Cultivating new consumption formats**: Supporting the development of emerging consumption patterns such as online and offline integration, experiential consumption, and sharing economy, and stimulating new consumption hotspots.
3. Build a long-term mechanism for consumption promotion
1. **Strengthen policy coordination and implementation**: Policy coordination should be strengthened among various departments to ensure that various consumption stimulus measures are effective. At the same time, establish a policy effect evaluation mechanism, and adjust and improve policies in a timely manner according to market feedback.
2. Deepening institutional reform and innovation: Continue to promote in-depth reforms such as the reform of the household registration system and the reform of the land system, and break down the institutional barriers that restrict consumption. Innovate the way public services are provided, and social capital is introduced to participate in the construction and operation of public service facilities, so as to improve the efficiency and quality of services.
3. Create a fair and competitive market environment: Crack down on counterfeiting, price fraud and other illegal acts, protect consumer rights and interests, and enhance consumer confidence. Promote the establishment of a credit system, build mechanisms for rewarding trustworthiness and punishing untrustworthiness, and maintain positive market order.
4. Strengthen fiscal and financial support: Rationally use fiscal funds to increase support for consumption-related infrastructure, public service projects, small and micro enterprises, and innovative enterprises. Guide financial institutions to innovate consumer credit products and provide convenient and low-cost consumer financial services.
Boosting residents' consumer confidence and eliminating worries is a systematic project, which requires the joint efforts of the government, the market and society. Through the design and implementation of targeted policies, improving social security, optimizing income distribution, regulating the real estate market, and promoting consumption upgrading, supplemented by the construction of a long-term mechanism for consumption promotion, it is expected to gradually solve residents' consumption concerns, release consumption potential, and inject lasting impetus into the stable operation of the mainland economy.