How to stimulate consumption and stimulate domestic demand?
We should understand that people's basic consumption does not rise linearly with money, but a parabola, which will actually reach the top to a certain extent. 10 billion and 10 billion are actually less than 10 times from the perspective of stimulating domestic demand by consumption. Moreover, to a certain extent, consumption is not a basic economic product, and its impact on the economy is more limited.
From the bottom of society, most rich people are just middle class. Then, for the middle class in China, most of them have just reached their present income, and they have not accumulated yet. For example, those big factories have an annual salary of one million, but they are all very young, and they have worked for more than 19 years at most, and their assets 1 20 million are far from enough to alleviate their anxiety in the future, and they dare not spend them all or even exceed their consumption.
In addition, the current consumption is also related to the judgment of the future. If you are pessimistic about the future, you must save more and not spend more. For example, the annual salary is 1 million now, but I don't know how many years I can get it, so I certainly dare not spend it. Coupled with the social stability in China for less than 40 years, many people are still confused about the future. Unlike the rich and stable system in the West 100 years, the view can be optimistic.
Therefore, the core is not the consumption of the really rich, but the consumption of those who are pessimistic about the future. This is the way to really stimulate domestic demand.