To spur consumption, China preps plan to boost disposable income by 2020
BEIJING (Reuters) - China's state planner said on Friday it would roll out a plan to boost disposable income this year and in 2020 to spur private consumption, a major plank in the world's second-biggest economy.
China will urge local authorities to adopt measures to quickly stimulate consumption, focusing on eliminating "pain points" and "blockages", said Meng Wei, spokeswoman at the National Development and Reform Commission (NDRC).
One consumption driver is income growth, which eased in China last year as corporate profits started to soften. Disposable income per capita rose 6.5 percent to 28,228 yuan ($4,224), slowing significantly from the 7.3 percent pace for 2017.
Allen Sanford17 hours ago
America feels that higher salaries will cause inflation, this is the thought in Anglo-Saxon economic circles....
However, executive salaries are unlimited and the excuse that the company need to give high salaries to executives in order to attract the best and the brightest.
What will companies do when AI and block-chain technology replace workers??
In order to have consumers people will need to be given basic incomes for the consumer oriented society to exist!!
Andrew17 hours ago
So you can boost the economy by spurring consumption among the masses rather than giving a massive tax break to the rich? Who knew?
ECHE17 hours ago
Pay couples to have more than 2 children, increase future workers and consumer.
Mik16 hours ago
Another country,, if China's so great, why so many Chinese in America?
K15 hours ago
So China is going to follow the democrats lead and raise the minimum wage?
M19 hours ago
More debt rather than accept the reality that growth will slow as they become more developed. They are following the same path as Japan.
None17 hours ago
Why not just force citizens to buy? The Chinese population loves being told what to do.
Ray18 hours ago
At lease China is doing something.
Denis9 hours ago
I can tell that most of the luxury stores in the US are empty because shortage of customers from China. This is an indication that Chinese have the biggest purchasing power and they purchase with cash and not credit that most Americans use.
Papabear12 hours ago
When will US boosts disposable income?
CallMeIndependent17 hours ago
Yeah, transform your citizenry into spending themselves into lifelong debt and keep them there in misery. The USA does that.
Russ17 hours ago
It's Keynesian economics. Milton Friedman still doesn't understand...
c13 hours ago
If Chinese were to allow to use credit cards, the consumption will go up instantly. At least for a while.
Anonymous5 hours ago
China pulled the world out from recession in 2008, now it is USA's turn but pretty obvious, Trump is doing the exact opposite!
Alex2 hours ago
Well done, China, very well done indeed. Keep up with the good work and "Make China Stronger, More Prosperous and Greater than USA " All China haters and hypocrites may thumb this comment down at least 1,000 times, Thank you losers and all trashes