Pekingnology • 60 implied HN points • 14 Feb 26
- Household consumption is weak mainly because people’s job prospects, incomes, and confidence are shaky, so restoring expectations and income security is central to reviving demand.
- Fixing this requires deep redistribution: shift fiscal spending away from large physical projects and fiscal assets toward public services and direct support for people, and make fiscal policy more equal between urban and rural areas.
- Pair short‑term policy measures to unlock immediate spending with long‑term institutional reform — especially a universal, non‑discriminatory social security and transfer system — and make expectations management a routine part of macroeconomic governance.