Supply me to the moon

Policymakers have completely, utterly misdiagnosed the underlying causes of China's lackluster consumption.

On Monday, officials from five departments discussed Beijing's pro-consumption policies at a State Council presser.

• Following the econ-focused Politburo meeting's call to "expand consumption," policymakers have recently released a volley of consumption-support measures.

Officials cited the following reasons for subpar consumption:

• Concerns over product safety and quality
• Inadequate logistics networks
• Lack of niche product availability, such as elderly-friendly smartphones
• Underdeveloped sales channels
• Insufficient interoperability between different product platforms

To address this, NDRC vice chairman Li Chunlin said policymakers are looking to upgrade the quality of consumer goods (SCIO):

• “The starting point of pro-consumption policies is to help residents save money through the purchase of cheaper, higher-quality goods that are more in line with their needs.”

Miao Muyang, from the culture and tourism ministry, also missed the mark:

• “The goal of promoting consumption is not to take money out of people’s pockets, but to meet the people’s desire for a better life."

Our take: No, no, and no.

• Elderly-friendly smartphones won't fix the economy, and the starting point of pro-consumption policies isn't to help residents save even more money.

Get smart: Consumers aren't spending because income growth has slowed and the economic outlook remains uncertain.

• Until these two issues are addressed, consumption will not pick up in a meaningful way.