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In 1949 when the New China was founded, Wang Mei was 18 years old. She recalled the time when more jobs became available for average people. Making a better living suddenly became possible.
"Everything got started after 1949, as there were lots of positions available during that time. The government helped many people find their jobs. It basically solved the problem of survival to begin with. But still, there was no such conception of 'consumption' like today."
Wang Mei married her husband in 1956. The couple's monthly income was about 200 Yuan. It was a pretty good income at that time. However, there was not much to buy in the market.
"Once we got married, we were given a small apartment. It was like renting. All the furniture and necessities were public property. We didn't have private assets. Our income was already quite good compared to others, but there were few products in the market for us to buy. All the food and products were dispatched into our hands. We didn't think much about how to spend the money."
According to the statistics of the Beijing Statistics Bureau, in 1957, urbanites in Beijing on average only had 230 Yuan in hand to spend, and it was no more than 350 Yuan in 1978, but when it came to the year 2000, average city incomes jumped to 6280 Yuan. By 2008, the number has reached 15,780 Yuan.
During the 1980s, the common values in society was working diligently and living in a simple and thrifty way. In 1983, Wang Mei retired from work. Her daughter, Zhang Fan's mother Wu Ling was working as a trainer in a state-owned enterprise. Her home was quite far from the office. Yet, no matter whether it was a rainy or windy day, she always rode her bicycle to work.
"The first thing I think of now is not to get sun burnt riding a bike to work. But at that time, the only thing I wanted to do was to save the 10 cents bus ticket expense. I found it quite worthwhile saving that expense because it meant I could buy a packet of biscuits for my daughter later."
The 1980s was when the planned economy transferred to a market economy. Wu Ling's husband was also working in a state-owned enterprise when a group of private entrepreneurs emerged in the Chinese market. Almost overnight, people found themselves among scores of ten-thousand Yuan households. In order to benefit from the old planned economy system while taking advantage of country's reform and opening-up, Wu Ling quit her job but asked her husband to stay in the state-owned enterprise.
"I started by selling some clothes. I carried a huge bundle of clothes on the bike from Chao yangmen to Xi Hongmen, a very long distance. It was quite a hard time but I was so willing to endure the hardship, because I knew that if I worked harder, my child would have a better life later."
In the late 1980s, Wu Ling and her husband had themselves become a ten-thousand Yuan household, a bittersweet title used to describe the 1980s nouveau riche by neighbors. Wu Ling's husband Zhang Qiang recalled their first luxurious purchase, a telephone.
"Many neighbors questioned whether it was really necessary to have a telephone at home. The communication format during that time was mainly mailing each other, and people only used phones at work. Many neighbors found it funny and a kind of waste. But as time goes by, those so-called luxury products have become necessities in our daily life."
Among their neighbors, Wu Ling and her husband were pioneers in consumption. In 1980, Zhang Qiang handmade a set of furniture in order to marry Wu Ling, and later he learnt to set up a black and white TV. As his salary kept growing and Wu Ling's business grew, in 1993 they bought the first air-conditioner in the community. They bought their first car, a Jeep in 1995 when only a few people had private cars.
This year, their daughter Zhang Fan and her fiancé Li Bo has bought a new car. Grandma Wang Mei can't agree with the young people's spending attitudes.
"I usually go to the morning market to buy vegetables. Why? Because it's cheap, and you can compare prices and bargain, but the 80s generation like Zhang Fan never asks for prices. If they like the product, they just buy it right away!"
Although this may be an exaggeration, there is no doubt that for Zhang Fan, spending tomorrow's money today has become a new trend among young consumers.
"I usually spend all the money I earn each month. I think life is short and I need to enjoy it. As we earn more money, we can later upgrade the house into a bigger one and buy a new car. I don't mind borrowing money to do it."
The Engel Coefficient, the proportion of food expenditure in consumer expenditure has reduced from 59% in 1978 to 34% in 2008 as Beijing Urbanites' spending power has increased during the past 30 years. From planned economy to market economy, from saving to spending, Beijing urbanites' consumption trends have also greatly changed, and are still changing.
For China Drive, I'm Liu Min.