ABSTRACT
Since the “Seventh Five-year Plan,” China’s rate of consumption has been in continual decline. However, this trend has generally been masked by changing price levels, and has therefore tended to go unnoticed. The deepening of the reform of economic system in urban areas, almost all enterprises have now become market-driven. The government can no longer, as under the previous planned economic system, increase workers’ salaries through administrative order. The income of those who work in the areas of education, science, arts, health, and government is obviously too low. Doing so will not only increase consumer spending, expand demand, stimulate investment, increase employment, activate the market, and generate economic growth; it will also facilitate the establishment of a clean and hardworking government and the implementation of the policy of building up the country through science and education.
