The Practicability Of Consumption Led Economy

For instance, economic growth is mainly constrained by the policy and political environment, which indicates that the economic growth momentum is not strongly autonomous. The current consumption growth will mainly depend on policy guidance and encouragement in the national income distribution system. If there is no fundamental change in circumstances, the steady growth in consumption of endogenous mechanisms is hard to form.

China has already overtaken Japan to become the world`s second-largest economy in recent five years. “However, such economic

It is this that has sparked China’s vulnerability to external shocks. In 2011, China’s exports amassed almost $2 trillion, however in Feb 2012, China recorded a $31.5 billion trade deficit as a result of the European sovereign debt crisis in which China’s main trading partners plunged into recession. China’s severe BOGS decrease is an attempt to control growth and a sustained level of 7.5%. Investment policies are also critical for China to achieve economic growth and development. Foreign Direct Investment (FDI) in China is being sought primarily in the redesign of State Owned Enterprises (SOE’s) and in the development of interior provinces. Between 75-80% of World Bank loans to China in 2008 were directed to the central and western regions, the most economically disadvantaged. This promotes increased wealth within China, leading to higher levels of development due to a more positive Human Development Index (HDI), which currently sits at 0.687, up from 0.677 in 2010. Thus, trade and investment are critical factors in ensuring that China’s growth remains sustained at 7.5% whilst still encouraging increases in development.

The Chinese president is looking to boost consumption and import as part of efforts to restructure its economy (Hu Looks to Boost China's Consumption, Imports, (April 15, 2011). The Chinese energy consumption has been predicted to soar to 68% higher than that of the USA by the year 2035(China, India to lead energy consumption, (September 20, 2011). Investment spending is also set to increase from $12,633 billion (2011, 48% of GDP) to $29,628 billion by 2030 (38% of GDP) (CHINA - Gross fixed investment (% of GDP) from 2011 to 2030, EIU Country Data). In 2006 China had a rating of 5.00 and was seen ranked at 101st in terms of the degree of economic freedom as measured

Since the reform and opening up, the economy of China grows significantly, as an emerging economy, China's economy has made tremendous contributions to the global economy, and Renminbi has become one of the most important currency in the world. According to the survey conducted by China National Bureau of Statistics found that from 1979 to 2012, China has attained an annual average growth rate of 9.8% for its national economy, while the annual average growth of the world economy is only 2.8 % during the same period. In past 30 years, China's GDP surpassed Japan’s, China became the world 's second largest economy, in addition, the huge total volume of trade makes China become the world 's largest trading nation. The contribution of China’s

Nowadays, China has become the second largest economy in the world. The GDP (gross domestic product) of china was growing at 9.7% per year in average since 1978, which the year of Chinese “open door” politic founded. China also has become the biggest producer and consumer in many key agricultural and industrial markets and the largest FDI recipient among the developing countries. The performance of china in developing of economy is called “china’s economic miracle”, which be studied by many economists. However, there are also bad results with the development of economy in china such as environment disruption, corruption and

Between the late nineteenth century and early twentieth century, Japan’s economy developed remarkably. China had also developed economically; however, not near as much as Japan. The Japanese government industrialized greatly and encouraged western influence, but the Chinese government did the opposite.

The Bureau of Economic Analysis showed output in the U.S. increasing at a rate of 2.3% for the second quarter of 2015 (Sharf, 2015). This is a 1.7% increase from the first quarter when real GDP increased 0.6% (Sharf, 2015). Current-dollar GDP decreased 0.2 percent, which is the equivalent of $10.4 billion, in the first quarter of 2015 to $17,693.3 billion (News Release: Gross Domestic Product). The B.E.A. also reports (GDP 2015) that personal consumption has doubled within the first two quarters of 2015 from 1.8% to 3.6%, suggesting that consumer income has also increased alongside GDP.

China economy experienced an incredible growth in the last few decades that made the country the 2nd largest economy in the world. When China started the program of economic reforms in 1978, it ranked 9th in nominal GDP but 35 years later it’s now ranked 2nd in the nominal GDP and been the world’s manufacturing hub. In recent years, China’s modernization propelled the tertiary sector and in 2013, it became the largest category of GDP with a share of 46.1%, while the secondary sector still accounted for a sizeable, 45% of the country’s total output. Meanwhile, the primary sector's weight in GDP has shrunk dramatically since the country opened up to the world.

The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.

Following the end of World War II, the American economy found its way out of depression. Wartime production aided the economy and spiked the country’s spending power. From the late 1940s, people have been accustomed to spending the money they have on everything they want and need. People then started to figure out and believe that this type of spending, consumerism, improved the economy. The items that were being bought were also different than they were before. “At war's end, the items people most desired included televisions, cars, washing machines, refrigerators, toasters, and vacuum cleaners: the machines that would help

The future of the economy is still going strong but one has not seen the great strides in advancement, as was the case from 1983 to 1993(economy). "Per capita personal income for the Nation is projected to increase 1.2 percent per year in 1993-2005, compared with a 1.4 percent increase per year in 1983-93. The growth rate slows as a result of the relationship between personal

The purpose of this essay is to show how the economy of China has, and is changing, becoming the second largest economy in the world today. Although China is currently under the leadership of Xi Jinping, this essay will concentrate primarily on the actions undertaken by then President Mao Zedong, followed by then President Deng Xiaoping, (sans mention of Hua Guofeng). Given the relative infancy of Xi’s assumption of power, economic policies still remain largely rhetorical in form. Likewise, the majority of literature concerning economic policies under Xi are largely speculative, often citing strategies and ambitions as opposed to thereby, lacking a solid basis for rational induction In addition to China’s lack of transparency, In addition, it will be shown that the methodology behind the Chinese economy demonstrates the implementation of varying levels of the characteristics associated with the schools of Realism, Marxism and Liberalism. Thus, China’s approach to global trade in the 21st Century is pluralistic, testamentary to the failed economic

Over the past couple decades, China’s economy has been shifting from an economy that relies on exports and low cost production to a consumer economy that has much more open markets than it used to. As a result, they are poised to regain their status as the largest economy in the world in terms of purchasing power. China used to make and produce products at a low price, now they want to build the machines that make these products instead. Looking forward, there will be four main trends that will drive the growth of China’s economy even if  growth is very marginal. These trends are; the shift in investment, the shift in capital flows, the shift in consumer leverage, and the shift in shopping(ecommerce).

Research linking consumption patterns and wealth accumulation has focused on the US (Gourinchas and Parker, 2002; Cagetti, 2003). However, given the large difference in capital to income ratios between the US and UK (Piketty and Zucman, 2014), it is possible that UK wealth accumulation dynamics differ from those in the US. Hence, the strength and timing of the precautionary and life cycle savings motives in the UK require further exploration.