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Research On Situations Reasons And Measures
Of lack of effective Demand In Our Country
Major:Marxist TheoryIdeological-political Education
Direction:Marxism Theory Education
Tutor:Prof.ZHU Zhi一)rong
Author:HE Guang-ming(L2002028)
Abstract
The theory“Market operation is self-sufficient,So the outside power such as
government does no good except for harm.”W嬲expounded by Adam smith’s“invisible
hand’’and Say?s supplies create demands”.But it isn’t explicable because of the breaking
out of capitalist world economic crises from 1929 to 1993.Then the fact,cyclical economic
crises in market economy operation,is a bitter irony to
the theory“Market is self-sufficient.
Thc theory’’effective demand”has ever been the theoretical basis of western countries’
overcoming economic degradation and formulating macroeconomic policy.John Maynard
Keynes who epitomized the thought of the school is regarded as the obntributory of modem
westel-n economics theories.Keynes’s way to solve lack of effective demand is to strengthen
government interfere,to stimulate consumption and increase investment by financial deficit
and expansionary monetary policy.Presently,our country’s economy also meets with the
same problem of lack of effective demand.Although its reason is fundamentally different
from what Keynes analyzer,it also do harm.In view of the situation of lack of effective
demand in our country.it is the most important to find out the real reason and its solution.The
writer be taken to enlarge effective demand in our country.
4Speed up adjustment of industrial structure,and open叩the rural market energetically·
*Bring into better balance the relations balance the relations between income distribution,
improve the incomes of rural inhabitant,and urban inhabRants,especially the group whose
incomes is low or medium.
*Improve investment conditions of enterprises and increase enterprises’ability to
invest and their enthusiasm.
’Develop energetically consumption credit,and breed neweconomic increasi
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