Rural Revitalization Facing the Current Situation of Excess Savings: To 'Attack' or to 'Defend'?

China's economic and social development continues to advance, leading to a steady increase in residents' income levels and a shift in income distribution perceptions. The high savings rate among Chinese residents has a significant impact on the country's economic development[1]. As household savings dominate the national savings, it is crucial to consider how to effectively convert these savings into investments to sustain economic growth. Household savings are vital for a country's economic stability and sustainable development, as changes in savings reflect not only the economic status of residents but also influence national money supply, investment, and consumption[2]. Despite a slowdown in income growth, household deposits have surged, a phenomenon attributed to reduced consumption, investment conversion, and precautionary savings. To advance rural revitalization, proactive measures must be taken to guide consumption and accelerate economic circulation. The high savings rate, a hallmark of China's economic structure, has underpinned its rapid growth[3]. However, this "excess savings" affects economic growth, banking operations, and monetary policy efficiency, while also diminishing the role of consumption in economic growth. Although some "excess savings" may be converted into investment, this process requires certain conditions. Therefore, efforts must focus on promoting consumption policies and reducing precautionary savings to achieve qualitative and quantitative growth.