Consumerism in China

Consumerism , or the act of being consumers, ie buying stuff is high on the government’s to-do list. Or at least to instill the notion of consumerism to the Chinese. See, the Chinese save too much, like 40% of their salary and such. The reason is cultural, and also that they really dont have much to invest in. They can buy houses, but the local stock market is monitored by the communist party and many dont trust it, also they cannot buy individual foreign stocks as we can. They can only buy into special mutual funds, basically they have no options. But, as couinterintuitive as it is, spending is actually the way to grow an economy. The idea is called the velocity of money and it means that the more that is spent and the more hands that money passes through, the bigger the economy will become. Its like, if I have 10 dollars, save one and spend 9 by buying from you, and you do the same, say you save 1 and spend 8, then the economy now has a total of 19 dollars in it. So the communist party has learned from the west and encouraging spending.