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Spending linked to social security

China Daily | Updated: 2013-07-17 09:59

Many people were surprised to find that China's average individual savings had reached 77,623 yuan ($12,645). But no matter how high or low the figure is, Chinese people are not likely to exchange happiness for consumption, says an article in Beijing Morning Post. Excerpts:

The announcement of the national average individual savings data could be demoralizing for people who don't have that sort of savings. In fact, many netizens have made fun of the latest savings data by saying that they will try to catch up with the national average by surviving without food and drinks.

The average savings rate may not mean much in times of wide differences in consumption, financing, investment and earnings, especially when depositing money in banks has become the least lucrative means of wealth management.

As a country that tops the global savings rate, China has a huge number of people who are reluctant to spend more and thus boost domestic consumption to help the country's economic growth. If savings is only about mere accumulation of money in banks, wealth management will not help national economic development.

Chinese people will really feel happy when they have enough in bank deposits even after spending more than usual, which means they should have enough cash in hand or bank to deal with emergencies, such as paying for housing, medical care and their children's education.

Therefore, only if the government increases its input in social security will Chinese people spend more instead of depositing their money in banks.

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