First, substantial direct or indirect wealth transfers from the state sector to Chinese households will unleash a surge in
household consumption as household income rises (and because the interest on bank deposits is an important source of income for most middle and lower middle class households, if the authorities reduce interest rates, as struggling borrowers are demanding, China actually moves in the wrong direction).
Not exact matches
First, there are several categories of spending by
households that are lumped into the personal
consumption expenditures category in our official GDP statistics that can fairly be counted
as investment.
If investment growth falls sharply, especially investment in the real estate sector, it should cause unemployment to surge, which of course puts downward pressure on
household income growth
as well
as on
consumption growth, potentially pushing China into a self - reinforcing downward spiral.
First, because they represented a transfer from net savers to net borrowers, they helped to exacerbate the split between the growth in
household income (
households are net savers) and the growth in GDP (which is generated by net borrowers), and so led directly to the extraordinary imbalance in the Chinese economy in which
consumption,
as a share of GDP, has declined to perhaps the lowest level ever recorded in history.
If the global economy were to recover much more quickly than most of us expect, and, much more importantly, if Beijing were to initiate a far more aggressive program of privatization and wealth transfer than I think politically possible, perhaps transferring in the first few years the equivalent of
as much
as 2 - 5 % of GDP, the surge in
household income could unleash much stronger
consumption growth than we have seen in the past.
I'll focus my attention on the potential size of the change in
households» cash flows
as well
as the effect on the
household sector's
consumption.
This, combined with widespread moral hazard, had inevitably to result in both tremendous misuse of capital and a sharp decline in the
consumption share of GDP (
as the
household income share declined)-- both of which of course happened to a remarkable degree in China.
But if
households retain a low share of everything they produce, with governments and businesses getting the rest, then again, whether they are
as thrifty
as ants or
as spendthrift
as grasshoppers, their total
consumption will be a low share of total GDP, and the country's total savings, which is equal to GDP minus
consumption, will be a high share.
But closing down unnecessary capacity can pay for itself, even if unemployed workers are temporarily put on the government payroll (causing debt to rise, but usually by less than it had before), but only temporarily
as Beijing takes other measures to boost
household income through wealth transfers from the state and so to boost
consumption, a form of demand which is likely to be more labor intensive than the demand created in the process of over-capacity.
This group of super spenders is expected to see its population double over the next five years to 100 million
households, and
as an economic force they are poised to eclipse the impact of rising but less - wealthy consumers: Their
consumption is currently growing at 17 percent a year, compared to just 5 percent among emerging - middle - class and middle - class consumers.
The revisions showed that in the first half of 2017,
household consumption and residential investment combined totalled 64.3 per cent
as the share of the total economy, a record.
Not surprisingly,
household consumption is consequently an extremely low share of GDP,
as is total
consumption, which consists mostly of
household consumption.
As savings were force up structurally, whether because of rising income inequality or a declining
household share of GDP, the system responded in ways that were sustainable (increases in productive investment) and in ways that were unsustainable (rising inventory in China, increases in speculative investment in the US, China, and Europe, and increases in credit - financed
consumption in the US and southern Europe).
Spain's
household savings rate fell to its lowest level on record in the third quarter of last year
as high unemployment and wage deflation in the latest recession obliged them to devote more of their disposable income to
consumption, according to figures released Wednesday by the National Statistics Institute (INE).
The model would tell us that rather than implement income distribution policies that force up the savings rate, Beijing should redistribute income from the state sector to
households so
as to force up
consumption.
The negative effects of lower oil prices hit the economy right away, and the various positives - more exports because of a stronger U.S. economy and a lower dollar, and more
consumption spending
as households spend less on fuel - will arrive only gradually, and are of uncertain size.
Growth in
household incomes has supported
consumption and should continue to do so in the period ahead,
as employment and wages continue to grow solidly.
Banks should, he argues, be pushed to support real business investment
as opposed to highly leveraged financial speculation and
household consumption.
As Adair Turner shows in his new book, Between Debt and the Devil, private sector debt soared as a share of GDP in most advanced economies after the 1980s, fuelling unproductive, debt financed household consumption, housing bubbles and wasteful financial speculatio
As Adair Turner shows in his new book, Between Debt and the Devil, private sector debt soared
as a share of GDP in most advanced economies after the 1980s, fuelling unproductive, debt financed household consumption, housing bubbles and wasteful financial speculatio
as a share of GDP in most advanced economies after the 1980s, fuelling unproductive, debt financed
household consumption, housing bubbles and wasteful financial speculation.
Consumption will remain low
as households rebuild their balance sheets.
Households are bound to become more cautious if the prospect of an economic downturn increases, and this would show up
as weaker
consumption and a rise in precautionary savings.
Generally, you can use distilled white vinegar for
household use and the cider vinegars, made from fermenting fruits such
as apples, for
consumption.
Mean and standard errors of monthly weight gain after adjusting for maternal age; race / ethnicity; education;
household income; marital status; parity; postpartum Special Supplemental Nutrition Program for Women, Infants, and Children program participation; prepregnancy body mass index (calculated
as weight in kilograms divided by height in meters squared); infant sex; gestational age; birth weight; age at solid food introduction; and sweet drinks
consumption.
The research also found some evidence of a «graduation effect», whereby involvement in an alternative food scheme encouraged consumers to change their
consumption behaviours in relation to other goods, such
as household products and clothes.
The measure - actual individual
consumption - takes in all goods and services that a
household consumes, including benefits in kind such
as health and education.
Eric Paulos at Carnegie Mellon University in Pittsburgh, Pennsylvania, and colleagues report in a new paper how,
as part of a study of domestic energy
consumption, they gave 12 US
households gadgets called Kill A Watts that reveal the energy use of devices.
It offers modular expandability for integrating devices such
as wireless Bluetooth or WLAN power outlets that can remotely activate and deactivate
household appliances, or for integrating high -
consumption items such
as heat pumps.
In that vein, the next suggested X Prize that Diamandis and Panlasigui reviewed proposed having
households across the country compete for $ 50 million to see which ones could lower their energy
consumption the most — a «giant Darwinian experiment,»
as Diamandis put it that morning.
A diet rich in vegetable oils, white flour and sugar, exposure to pesticides and herbicides,
consumption of conventionally raised dairy and meat products, the high use of plastics,
as well
as use of some cosmetics, toiletries and
household cleaners, increases the cancer causing 16a OH Estrone metabolite.
Over the next two years Chinese
household consumption will continue declining
as a share of GDP.
As households increase savings and reduce debt,
consumption is lower contributing to slower growth.
If
households are getting closer to retrenchment — voluntary or involuntary deleveraging — the reduction in
consumption would be problematic for equities
as well.
More importantly, says a Harvard study, «The current rate spread is an important influence on mortgage choice,
as would be implied by a model in which borrowing - constrained
households seek low rates in order to maintain the level of current
consumption, or to increase the size of the house they can buy when constrained by bank limitations on mortgage interest - to - income ratios.»
As pet parents learn about the health benefits of RAW diets,
household consumption has grown steadily.
Further, the actual return of solar panels depends on a set of variables: future inflation (
as the FIT is index - linked), interest rates, electricity prices, and
household electricity
consumption patterns.
•
As a result, if we define net energy consumption as the product of gross energy consumption times an efficiency factor taking into account the efficiency of the energy sources used by households, we may observe an inverted - U relationship between gross energy consumption and income, even though net energy consumption may be monotonically increasing in incom
As a result, if we define net energy
consumption as the product of gross energy consumption times an efficiency factor taking into account the efficiency of the energy sources used by households, we may observe an inverted - U relationship between gross energy consumption and income, even though net energy consumption may be monotonically increasing in incom
as the product of gross energy
consumption times an efficiency factor taking into account the efficiency of the energy sources used by
households, we may observe an inverted - U relationship between gross energy
consumption and income, even though net energy
consumption may be monotonically increasing in income.
Average vehicle fuel
consumption: A ratio estimate defined
as total gallons of fuel consumed by all vehicles divided by (1) the total number of vehicles (for average fuel
consumption per vehicle) or (2) the total number of
households (for average fuel
consumption per
household).
At the same time,
household electricity
consumption has been going down by about 1 percent a year since 2005,
as higher prices forced Germans to save energy.
Data from the 2015 Residential Energy
Consumption Survey (RECS) show that the majority of American
households use one of three types of equipment
as their main source of heat during the winter: natural gas furnaces, electric furnaces, or electric heat pumps.
Though energy prices are expected to increase modestly, energy
consumption is expected to counteract these increases
as households take advantage of these energy efficiency programs.
Cutting
household energy
consumption by 5.4 % by 2027 is seen
as a worthwhile end — the real priority in the environmentalists» conception of efficiency.
We must continue to improve our scientific understanding, particularly of the impacts of climate change; we must implement policies such
as raising the market price of carbon to provide incentives to
households to alter their
consumption so that they will have a low - carbon diet; we must also raise carbon prices to send a signal to firms like ExxonMobil that their future lies in research, development, and production of low - carbon fuels; and we must devise mechanisms so that countries will join in a global effort rather than one limited to northwest Europe.
In this post, I discuss the trend in the figure below: US monthly personal -
consumption expenditures (PCE) for food and energy goods and services
as a percentage of total
household expenditures.
«Increasing
consumption in urbanising China has been identified
as an important driver of
household carbon footprints over the last 20 years due to the growing urban population and incomes, while decreasing carbon intensity of the Chinese economy only weakly dampens these trends,» the study says.
South Africa is cited
as an example of a country that would benefit,
as electric water heating currently accounts for a third of average
household (coal - based) power
consumption there.
During the 1960s, the expansion in publicly provided services created employment opportunities for women and
as men's wage increases started to stall, married women took on part - time jobs in order to maintain
household consumption standards.
The automobile had been invented and entered mass production in the early 1900s, but just
as the internal combustion engine started to prevail over electric cars at that time and mass production took hold with Ford's Model T bringing some cars and trucks into upper middle class
households and into use by businesses and farms, the Great Depression and World War II dramatically reduced private personal
consumption, so for the two decades from about 1929 until the several years after World War II that it took to convert factories from war production to civilian peacetime production, the automobile industry's private sector sales were greatly suppressed, domestic civilian road and bridge construction came to a near halt during World War II
as government funds were diverted to the war effort, and domestic oil
consumption was likewise suppressed.
LONDON — February 8, 2018 — With energy
consumption of each bitcoin transaction equal to 17.5 U.S
household's daily
consumption as of January...
- More than six in ten
households with Internet access have a Wi - Fi network at home: Sixty - two percent of homes with Internet access have wireless network set - ups in their homes, more easily enabling the
consumption of digital media in any room of their home,
as more and more devices feature built - in Wi - Fi.
The Pew Internet report, in conjunction with Elon University, found that 51 percent of survey participants agreed that by 2020, the connected
household will have «become a model of efficiency,
as people are able to manage
consumption of resources (electricity, water, food, even bandwidth) in ways that place less of a burden on the environment while saving
households money.»