Zhang Bin from the Chinese Academy of Social Sciences: The most effective way to boost consumption is to rapidly expand investment in the short term

Zhang Bin, deputy director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, pointed out that the causes of insufficient demand are complex, but the solution is not to address all structural contradictions one by one. Instead, it is to prioritize "stanching the bleeding," breaking the transmission chain of the self-amplifying reverse cycle of insufficient demand, and preventing it from continuing to escalate. Zhang Bin believes that consumption is a slow variable, and it is difficult to significantly boost consumption in the short term, while investment responds more quickly and has a stronger driving force. Expanding effective investment in the short term can rapidly increase nominal GDP, allowing for simultaneous growth in residents' income, corporate profits, and government tax revenue, thereby providing solid support for consumption. (Finance)