Insufficient total demand of consumption is a headache amid the imbalanced macro-economic situation in China. A micro mechanism to cope with this imbalance is through market pricing of the salary. Two characteristics of the labor market are observed. One is excessive supply of labors, the other is monopolistic demand of labors. This leads to a low price of labor with the consequence of insufficient demand on consumption. To solve this problem, a series of reforms need to be implemented on the marketing system with the purpose of constructing harmonious society.
|Original language||Chinese (Simplified)|
|Number of pages||6|
|Publication status||Published - 2005|
- total demand of consumption
- macro economic imbalance
- salary rate
- pricing by market