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The new concept of "Imposed Domestic Consumption" by the government [Copy link] 中文

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Post time 2008-12-30 09:28:44 |Display all floors
China has too low a consumption with respect to its GDP. People are just saving too much therefore hard to establish domestic driven economy.  The government try to stimulate by giving rebates on buying new cars, electric appliances,  better safety nets such health insurance.....etc.   

It's fine, but I think it's still not enough.  I really it would serve the country better if the government imposed upon its people to consume the domestic goods in order get that domestic economy engine moving into high gear.  

Here's some of the ideas
1)Cars & trucks older than 10 yrs old are not allow on the road.  They must be replaced!!more rebates if buy dometic brand cars.
2)Each Students going to school must purchase a laptop made with domestic produced "Godson" processors & linux system.  school would assign projects to students with such laptops. Each laptop must be less than 5 yrs old or be replaced
3)Each employee who has job must have a cellphone, The phone must be less than 3 yrs old.
4)Each farming family must own a set of farming equipments. Tractors, trucks,  They must be less than 10 yrs old.
5)Each family rent a apartment or bought home must need to buy a set of appliances, LCD TV, refrigerators, micowave oven, washing machine....etc

People can the option of  buy now and pay later Using national credit card.
those who don't pay their monthly payment  will be recorded. Their wages would be garnished in the future if they have a job.    So, this way it guarantee the payments would be made.

As  for  foreigners living in China, they must pay up front, no credit card system for them.


The bottom line is China has to consume more, using credit card, future type of payment.

As a communist country the government can use its power to enforce and impose domestic consumption. actually it's for the good of the country.

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Post time 2008-12-30 12:37:34 |Display all floors
1How many cars does China have that are over 10 years old?
2You are going to have to subsidize a lot of those laptops as many students come from poor families and cant afford them.  Even university students are not all rich.
3 not a problem, but who doesnt have a cellphone in this country?
4 Chinese farms are very small, requiring each to have a tractor and truck would be excessive.
5 Don't all chinese apartments come with all that stuff.  I guess my TV is not an LCD but still, I think every apartment has a refrigerator already.  

As for worrying about foreigners, Dont.  We cant drive in China without getting a Chinese drivers license.  We dont farm.  We all have cell phones.  It is very hard to buy a Chinese apartment so we rent.  It is thus the landlord responsibility.  

I mean its a nice idea but I would hope that China's greatest leaders could come up with something a little more in depth that actually helps China instead of just wastes money.  I would also like to see something that can better deal with the difference between rich and poor.  300 million people in China cannot afford what you suggest.

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Post time 2008-12-31 02:06:32 |Display all floors
Originally posted by idiot8 at 2008-12-30 12:37
mean its a nice idea but I would hope that China's greatest leaders could come up with something a little more in depth that actually helps China instead of just wastes money.  I would also like to see something that can better deal with the difference between rich and poor.  300 million people in China cannot afford what you suggest.


you missunderstood,  rebates are kind of like addendums ,but the majority of the responsibility are on the consumers.   That's why there are such things as national credit card, and social security number for each citizen so they can keep track of the each person's debt.

The system is buy now and pay later. Those who can't make the monthly payments because of temp unemployment will have to pay through garnishment of wage on their future jobs or future earnings. It could be done.

Not many western countries can implemented that because it's too draconian and undemocratic..  but here one example that such measurement can really help the country's economy.

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Post time 2008-12-31 03:36:07 |Display all floors
Wow. I have a better idea, though the Chinese middle-to-upper classes might not want to read it.

What if the government introduced a resource tax and introduced universal education at least to the end of senior secondary school?

Considering that those who consume more resources are also contributing more to resource depletion, it's only fair that they pay more in taxes. Such a tax would also encourage more efficient use of natural resources,and provide the government with the revenue necessary to finally educate its poor. This would create jobs for teachers, school construction, blackboards, chalk, publishing industry, etc.

Plus it would develop the human resources China will need for its future development, and help to narrow the gap between rich and poor.

You're obviously of the middle-to-upper classes.
四海之内皆兄弟
-孔子

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Post time 2008-12-31 05:27:59 |Display all floors
Originally posted by tianyuanedu at 2008-12-31 03:36
Wow. I have a better idea, though the Chinese middle-to-upper classes might not want to read it.

What if the government introduced a resource tax and introduced universal education at least to t ...


Increase more Tax,  No, the current government is decrease Tax and lower the interest rate to boost the economy.

Higher education =employment is absolute wrong.   Many graduates from college are having tremednous difficulties in finding jobs!!

But increased consumption of industrial goods have direct correlation to employment in the country.

The ones in the upper and middle classes can be required to consume more.

For example. if the lower wage people required to have a national credit card debt of $10,000 yuan,
then the middle class person would need to have $30,000 yuan,  rich person $100,000 yuan.

The more money you earn, the more you require to spend.
The national credit card system tie to social security number can be used to check what each citizen's required spending debts.

This is equivalent to forced circulation . At same time, be careful not to let the forced spending to be earned too much by foreign firms, which is equivalent someone take out the blood from the circulation.

If a family wants to buy a car then the first car has to be domestic brand, then 2nd car can be foreign brand. This way it would ensure the domestic industry earn the primary share first.

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Post time 2008-12-31 08:32:10 |Display all floors
Originally posted by emucentral at 2008-12-31 05:52


The government try to stimulate by giving rebates on buying new cars, electric appliances,  better safety nets such health insurance.....



Hi,Emu:

In China this is a camouflage and catchword in my thought.This can not stimulate the domestic consumation in the most extent.

Many days ago I heard of this news but I suspect its the effect and purpose that government would have got in the end.

You know Chinese persons are more conservative and have three huge mountains upon their head that are Apartment,medical treatment,retirement pension and children education. If the government donot reslove these matter the ordinary worried about, others are  useless.

I think Chengdu local government released 30000thousands consumption tickets to citizens, that is a really good idea ,which can get the purpose to stimulate the domestic market.This is really free bread.

[ Last edited by loststar at 2008-12-31 08:34 AM ]
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Post time 2008-12-31 09:21:27 |Display all floors
Originally posted by loststar at 2008-12-31 08:32

You know Chinese persons are more conservative and have three huge mountains upon their head that are Apartment,medical treatment,retirement pension and children education. If the government donot reslove these matter the ordinary worried about, others are  useless.


That's what I am saying, It's all psychological.  People still clung to those old beliefs and habits.
That's why if governemnt impose those new rules on consumption it will help break those old habits and force the circulation going.

If you leave the choice up to the chinese folks, most likely they will be too conservative and get nothing done even with rebates and tax breaks.

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