China's Consumption Imbalance Fuels Inequality, Calls for Income Boost
The article analyzes China's consumption patterns from 1978 to 2006. It finds that there is too much focus on investing and not enough on spending, leading to high government spending and low individual spending. Urban residents spend more than rural residents, creating a gap between income classes and regions. To improve the economy, the focus should shift towards encouraging more individual spending by increasing income and investing in public goods.