Abstract:

China’s current economic problem has developed in the context of America’s financial crisis， but it is basically a traditional economic crisis of overproduction resulting from the difficulty with the transition from the time for living necessities to the time for durable goods. The financial crisis originated from the U.S. has just triggered a breeding crisis of overproduction in China； reasonably， the problem of America is not necessarily the same as the problem of China. What China is facing now is characterized of a traditional economic crisis of overproduction， which is the prerequisite for analyzing China’s problems and discussing the social consequences of this economic crisis. China’s problems mainly reflect the tangible economy and their extending effects on society. In this condition， the important task for us is to utilize the current economic crisis to create conditions for a successful transition from the time for living necessities to the time for durable goods so that a real transformation of developing modes is accomplished. At the same time， China should construct its social security network as a filtration mechanism to either insolate or slow down the effects of an economic crisis on society.