Source: People’s Daily, 2013-03-07 Page 10
Written by: Yin Shichang
Translated by: Liang Wenjie

Mao Yunshi, member of the CPPCC National Committee  and professor of Sun Yat-sen University

Having Money in Hand
Having Places to Spend It

Domestic demand is an important resource when our market is thought highly of globally. The first thing for expanding domestic demand is to guarantee the quality of supplies, and the second is to emphasize innovation of products and services.

Besides, steadily increasing people’s income is also needed. Firstly, we should raise the standard of minimum wage, strengthen social security for lower incomers, and stimulate consumer demand at the basic level. Secondly, we should gradually raise the threshold of personal income tax and stimulate consumer demand of middle-incomers through tax cut. At present, there is a concern about excessive demand for investment. Actually, as long as good projects are selected in such fields as infrastructure in western regions or rural areas, there is still potential for investment demand.

Above all, the expansion of domestic demand relies on the increase of income as well as the improvement of supply. Domestic demand will be stimulated if people have money in hand and have places to spend it.