What is the economic phenomenon of the decline in the level of consumption?

Generally speaking, it is inflation and economic crisis, and it may also be the price of goods caused by the growth rate of residents' wages is much lower than the country's development rate**.

The per capita consumption level refers to the amount of material means of subsistence and services that each person occupies and enjoys on average in a certain period of time (month, year). It is the ultimate embodiment of the results of a country's entire economic activities, and it is also a reflection of the degree to which the people's material and cultural needs are satisfied.

Per capita consumption level (year) = total personal consumption of residents Total annual average population.

The Consumer Price Index (CPI) is an index of price changes that reflect the statistics of goods and services related to residents' lives, and is usually used as an important indicator to observe the inflation level. If the CPI rises too much, indicating that inflation has become an economic destabilizing factor, the central bank risks tightening monetary and fiscal policies, creating uncertainty about the economic outlook. As a result, the index's excessively high rise is often unpopular with the market.

CPI) is a lagging data, but it is often an important reference indicator for market economic activities and monetary policy. CPI stability, full employment, and GDP growth are often the most important socio-economic goals. However, judging from the reality of China, the stability and importance of the CPI are not as "authoritative as developed countries believe, and the economic activity of the market will be adjusted according to changes in the CPI".

In recent years, GDP growth in Europe and the United States has fluctuated around 2%, and the CPI has also fluctuated in the range of 0% to 3%, while the situation in China is completely different. First of all, the rapid growth of the domestic economy, GDP growth in the past two years has been above 9%, but the CPI has not fluctuated much. Second, the CPI fluctuated greatly within a year, with a difference of several percentage points; Under normal circumstances, unless there is a major emergency in economic life (such as the Asian financial crisis in 1997), the CPI is unlikely to fluctuate drastically, so the large fluctuations in China's CPI in 2004 are somewhat abnormal.

Third, with the sharp fluctuation of CPI, the inflation rate of the domestic economy is too high for a while, and the negative interest rate of people's savings is serious. Such an economic environment is worrying, so how to understand the CPI index has become a very important issue.

the basic content of citizens' consumption in personal and household life and the factors affecting household consumption; the relationship between household consumption and social production; Consumers have key rights in accordance with the law; China's legislation and organizational structure to protect the legitimate rights and interests of consumers; general procedures for resolving disputes between consumers and business operators and protecting the legitimate rights and interests of consumers in accordance with the law; Obligations that consumers must fulfill while enjoying their rights. the role of the development of markets for goods and services in promoting production and improving people's living standards; The significance of establishing a correct concept of consumption.

Ability requirements: to cultivate students' ability to comprehensively apply knowledge, such as from the relationship between production and consumption, to establish a correct concept of consumption and the importance of moderate consumption.

The reasons for the decline in consumer demand can be manifold, and here are some of the possible reasons:

1.Economic downturn: When the economic situation is unstable, people's confidence and expectations are affected, and they may reduce consumption and remain cautious. In addition, economic distraction could lead to more unemployment and a shortage of funds, reducing their purchasing power.

2.Increased need to support the elderly: Due to the increasing problem of an aging population, many people need to spend more time and money caring for their elderly parents or grandparents, which may reduce their consumption.

3.Rising cost of living: With the rising cost of living such as goods**, rent, and health care, people's disposable income may fall, reducing their purchasing power and consumption demand.

4.Changes in consumption habits and values: In the context of economic development and social progress, people's consumption habits and values may change.

For example, they may pay more attention to environmental protection, healthy living, spiritual culture, etc., rather than focusing too much on luxury or material comforts.

In summary, there can be many reasons for the decline in consumer demand, including both economic factors as well as social and cultural factors.

Here are some common reasons why consumer demand is falling late:

1.Economic Downturn: When the economy is down, people usually feel uneasy and worried, and they reduce their spending to maintain financial stability.

2.Declining incomes: If people's incomes are declining, they may reduce their consumption to accommodate the change.

3.Rising unemployment: When the unemployment rate rises, many people can reduce their spending to save money.

4.Prices: When prices are high, people may buy fewer goods or services to avoid high costs.

5.Seasonal demand: Some goods or services have seasonal demand.

For example, during the cold winter, people may need to buy more heating equipment and clothing. During the hot summer months, people may need to buy more air conditioners and swimming equipment. When it comes to a season other than that good or service, demand drops.

6.Technological advancement: With the development and innovation of technology, some old products are replaced. For example, in the digital age, people may be more inclined to buy e-books rather than paper books. This will also lead to a decline in consumer demand.

Don't listen to their uselessness, that is, the price has risen, the salary has not risen, and it used to be useless to buy something after eating, but now the silver spine is at most enough to prepare for the bureau to eat.

The increase in consumption is an important factor in economic growth, which includes the following aspects:1Increased economic aggregate:

Higher consumption means that people spend more on consumption, which drives the growth of the total economy! 2.Stimulates the vitality of the market:

The increase in consumption can lead to the improvement of market demand, thereby stimulating the vitality of the market and promoting the balance between supply and demand of goods and services! 3.It has promoted industrial transformation and upgrading

The increase in consumption has made consumers pay more attention to quality and innovation, thus promoting the transformation and upgrading of the industry, and promoting the upgrading and optimization of production and services! 4.Increased levels of employment:

The increase in consumption makes enterprises generate greater benefits and profits, thereby increasing employment opportunities and jobs, and improving employment and income levels! 5.Promoted international**:

The increase in consumption expands the size and demand of the domestic market, thereby promoting the increase of international and cross-border flows, and promoting the development of the global economy! To sum up, the increase in consumption is an important factor in promoting economic growth and social prosperity, and has important economic and social significance!

Hello! We are happy to answer for you: the increase in consumption is an economic factor on the demand side!

Can you tell us more about that?

1.Increased economic aggregate: Higher consumption means that people spend more on consumption, which promotes the growth of economic aggregate!

2.Stimulates the vitality of the market: The increase in consumption can drive the improvement of market demand, thereby stimulating the vitality of the market and promoting the balance of supply and demand of goods and services!

3.Promote industrial transformation and upgrading: The increase in consumption has made Hengpao consumers pay more attention to quality and innovation, thereby promoting the transformation and upgrading of the industry, and promoting the upgrading and optimization of production and services!

4.Improved employment level: The increase in consumption makes enterprises generate greater benefits and profits, and Kibi thus increases employment opportunities and jobs, and improves employment and income levels!

5.Promote the international market: The increase in the scale and demand of the domestic market has promoted the increase of international and cross-border flows, and promoted the development of the global economy!

To sum up, the increase in consumption is an important factor in promoting economic growth and social prosperity, and has important economic and social significance!

Not a good thing. As a result of the decrease in consumer spending, the products produced by the factories cannot be sold, the workers are in a state of loss, the factories are unable to pay wages or lay off workers, and unemployment increases. Unemployment increases, incomes fall, and consumer spending decreases, creating a vicious circle.

So when the economy is booming, the unemployment rate is lower, the products are abundant, the ** is cheap, and everyone has money to spend. Due to the great abundance of products, the factory's products will be in excess of demand, which will reduce **, and some will reduce production. But the demand is still increasing, and finally slowly as the inventory decreases, **start**.

The money in people's hands is slowly decreasing, and some of them are starting to borrow money to consume, ** starting to **, and consumer spending is starting to decrease again. The economy enters a recession, and after a period of depression, it begins to expand again, and slowly prosper again, and the economy goes through four cycles, recovery, prosperity, recession, and depression, just like spring, summer, autumn and winter, and so on.

A decrease in consumer expenditure will reduce the income of some people, reduce income, and form a decrease in consumption. In the end, production shrinks or the goods produced are squeezed, and they cannot be sold.

The modern economy generally uses credit overdraft consumption to increase domestic demand, if moderate, it is conducive to economic development, however, excessive overdraft consumption is harmful to the economy. Because credit has a cycle, let's take a family consumption as an example, if a family starts to have no money to spend, the bank gives a limit of 100,000 yuan, he consumes the 100,000 yuan a year ago, and in the second or third year, in order to repay the debt, he no longer consumes excessively. Because the factory saw the increase in consumption in the first year, it felt that there was a market and would increase production, but in the second and third years, the factory produced a lot of goods, because people had no money to consume, and they could not consume through borrowing, and the income was used to pay off debts.

So it leads to overproduction. This kind of product is relatively in surplus, and some products are in short supply, such as daily necessities, food. That's why when the economy is in crisis, the food and vegetables in the supermarket are snapped up.

Maybe the car, or some mid-to-high-end goods, can't be sold. Factories will go out of business,