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Coupons-good way to boost consumption

In an effort to boost consumption and counter some the of the negative impacts of the novel coronavirus outbreak on the economy,authorities in more than 30 cities have distributed consumption coupons(优惠券)among local residents.Given that a better part of China’s economy is now mainly driven by domestic consumption,issuing consumption coupons should be seen as an ingenious way to help stabilize the economy.

The outbreak has sharply reduced consumption in the tourism,retail,catering,”cultural and entertainment industries in the first three months of this year,increasing the risk of unemployment.As for the impact of the outbreak for the entire year,it depends on whether consumption in the coming months would make up for the decline of consumption in the first quarter,in particular,the Spring Festival period.

The expected increase in consumption, especially in the durable goods sector, after the outbreak is effectively contained could partly balance out previous losses. But still it would be impossible to see a consumption spree(消费热潮)similar to that during Spring Festival.

Rising exports could possibly make up for the decline in domestic consumption.But net exports are not likely to rise this year because many countries have shut down their airports and seaports,and locked down cities to prevent the spread of the virus.

As such,the authorities have to boost consumption using whatever means.And as consumption is influenced by three factors-people’s income,confidence,and price of goods and services-the authorities should first reduce the epidemic’s negative impact on people’s income,by ensuring they have enough money spend.Second,they should boost people’s confidence so they dare to spend more.And third,the authorities should stabilize prices to encourage people to increase consumption.

Consumption coupons are a good way to achieve all the three goals. Issuing consumption coupons is similar to increasing people’s income and promoting consumption, because the coupons can be used to buy goods and services.

Many local authorities have even issued electronic consumption coupons through third-party payment. Such coupons are highly efficient,convenient,and easy to track.And since they also ensure equality and fairness,they are a good example of the important role digitalization plays in China’s social and economic governance.

The consumption coupons the local authorities have issued until now are mainly to boost the catering industry,obviously because the outbreak has dealt the industry a big blow.But the authorities should consider broadening the scope of the coupons in the future to further increase consumption by,say,issuing coupons that can be used in more sectors,including those for buying home appliances.

Moreover,the authorities could also combine e-coupons with targeted printout coupons for impoverished groups,extend the validity period for the coupons.But in general,the consumption coupons will play an active role in boosting domestic consumption this year.

Coupons-good way to boost consumption
Purpose	Consumption coupons have been distributed to boost economy and counter the negative impact of Covid-19.
1.of issuing consumption coupons	● Largely2.on domestic consumption,China’ economy calls for a new way to stay stable. ● The expected increase in consumption is not likely to3.for economic slowdown. ● Exports can’t be counted on as a stimulus to economy,since even airports and seaports of many countries are4.
5. of consumption coupons	● Issuing consumption coupons can be6.with increasing people’s income. ● Featuring7.efficiency and great convenience,electronic coupons can coupons ensure equality and fairness,thus boosting economy.
Suggestions	● Authorities are expected to8.the use of coupons to more sectors, including those for buying home appliances. ● The9.of e-coupons and targeted printout coupons as well as the extension of validity period is recommended.
Conclusion	The consumption coupons may10.the big blow the outbreak has on economy and actively promote domestic consumption.