Stimulating domestic demand means stimulating domestic consumption demand, which is a wise move to promote stable development and the only way to solve China's economic problems. How to practice Scientific Outlook on Development in implementing the central decision-making is a problem that we must pay attention to.

First of all, what is domestic demand:

"Domestic demand" is a personal capital, that is, internal demand. Generally speaking, exports to foreign countries are regarded as external demand, while domestic demand is relative domestic demand. Including investment demand and consumption demand.

Domestic demand can also be expressed as: ad = c+I+g I+G. Among them, ad is total demand, C is consumption, I is investment, and G is government expenditure. Consumption is the consumption of food, clothing, durable goods and services. Investment is an enterprise's investment. Government expenditure is government financial expenditure, including public construction, personnel salaries, transfer payments (subsidies, disaster relief) and other expenditures.

References:

China Economic Net

Second, the necessity of stimulating domestic demand:

With the deepening of the globalization of the world economy, the risks in the international market have intensified, making it more difficult to export foreign trade. The data shows that although the growth rate of total retail sales of social consumer goods has accelerated, its growth rate is far lower than that of fixed assets investment, and the trade surplus has hit record highs. This economic trend is likely to bring serious adverse consequences to the sustained and healthy development of China's economy.

Determined by the national conditions of China, for China, a large developing country with a large population, the most important force to promote economic growth is domestic demand. The vast domestic market is China's greatest advantage. In the face of increasingly fierce international market competition and complex changes in the world economy, based on domestic demand, China's economy can have more room for manoeuvre and enhance its ability to resist economic risks. Under the current severe international economic situation, expanding domestic demand is the fundamental policy to achieve rapid economic growth.

There is a wide demand in China's domestic market. Unbalanced economic development requires industrial structure and regional structure adjustment, urban and rural infrastructure construction needs to be accelerated and further improved, and enterprises need to carry out technological transformation and upgrading to improve product quality and efficiency, all of which require a lot of capital investment and will bring huge demand.

With the acceleration of industrialization, urbanization and modernization, the economic structure has been adjusted and upgraded, and the domestic market demand has been further expanded. Therefore, for a developing country like China, the most important driving force for economic growth is still domestic demand, which is a solid foundation for China's economic development.

References:

Xinlang finance

3. Difficulties in stimulating domestic demand:

The slow growth of farmers' income has affected the further expansion of domestic demand.

The continuous decline in prices has expanded the impact of insufficient consumer demand.

Increasing employment pressure has become the bottleneck of consumer demand growth.

The shortage of rural consumption demand has become a long-term problem affecting the consumption growth in China.

The growth rate of private investment is not large, and the ability to stimulate economic growth is insufficient.

The downturn in the stock market has affected the consumer confidence of investors.

With the increase of transaction costs, the market economic order needs to be further rectified.

Fourth, matters needing attention:

1, carefully selected items:

National economic construction is a huge and complex social system project, so there are thousands of construction projects, including local projects. Of course, those with high energy consumption, heavy pollution and repeated convergence should be screened out. Although the country's increased investment in infrastructure projects can stimulate domestic demand, generally 40% of the investment funds will be converted into consumption funds, but its contribution to promoting related industries and people's livelihood consumption is quite different. At present, the central government focuses on railways, highways, bridges, airports, power stations, high-tech industries and other major fields.

2. Pay attention to balance:

Paying attention to balance is an important content of macroeconomic research, not only paying attention to industry balance, but also paying attention to regional balance. Even within a region or industry, we should pay attention to comprehensive balance, and the gap should not be too big. A few years ago, due to limited financial resources, image project, performance project, and China livelihood project, the gap between education and medical and health industries, departments and units was so great that the trend of choosing schools and hospitals became more and more intense. Taking primary and secondary schools as an example, the modernization level of key middle schools and experimental primary schools in the eyes of local governments can be comparable to that of advanced countries in the world. The gap between medical and health units also exists.

3. Strengthen supervision:

At present, the 4 trillion yuan "Big Cake" attracts the attention of all China people, and all government departments and units want to share a spoonful. But not many people think about how to use the money on the cutting edge after they get it, and some of them are also embezzled and misappropriated. Due to the weak supervision mechanism, there are many loopholes for people to drill. Every time a major project is successfully declared and a huge sum of money is allocated in place, there will be some "bean curd dregs projects", which will breed a number of moths, identify several major corrupt criminals, and even involve hundreds of millions of people in corruption.

4. Pay attention to people's livelihood:

1929- 1933 After the first world economic crisis, American President Roosevelt implemented the New Deal to revitalize the American economy. Although many measures are novel and effective, the poor didn't benefit first because they didn't pay attention to people's livelihood, and the result was not ideal, which laid a curse for the abnormal development of American economy later. Therefore, China should take a warning, and the focus of expanding domestic demand is to pay attention to people's livelihood. For example, the real estate industry in China, driven by huge profits, is mostly 1000 yuan/square meter of high-grade commercial housing. The majority of low-and middle-income people, the whole family can't afford to eat and wear for a lifetime, so they have to look at the building and sigh. Therefore, it is suggested that the National Development and Reform Commission and the Ministry of Housing and Urban-Rural Development build more low-rent housing, affordable housing and price-limited housing to improve the housing problem of residents.

References:

China Economic Net