Topic:Can shopping vouchers increase consumption?
Questions for Reference:
1、To stimulate consumption,which is more effective, tax reduction or shopping vouchers?
2、What are the major purposes of inssuing shopping vouchers?
3、In what way can the shopping vouchers best be distributes? Shall every citizen be given the same amount of shopping vouchers or should the vouchers be limited to the lower-income people only?
Start to say:
As a popular saying goes:"Economic base determines the superstructure." The development of a country cannot be separated from the economic prosperity, and stimulate consumption is a method to promote economic development. There are two way to stimulate consumption: tax reduction or shopping vouchers.
In my opinion, shopping vouchers is more effective than tax reduction. When a person has not need for shopping for a while, a shopping voucher will remind him to spend to avoid wasting.That means shopping voucher can create more consuming behavior. But tax reduction just means people spend less on buying necessities than on a wide variety of goods.
It is another problem: how to distribute the shopping vouchers?Shall every citizen be given the same amount of shopping vouchers? In my point of view, of course not. High-income people have enough purchasing power and shopping vouchers cannot affect their purchase behavior.For low-income and middle-income people, shopping vouchers will influence their consumption strongly.
In summary,inssuing shopping vouchers to limited income people will effectively increase consumption.
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