Coupons to spend "How did you spend your coupons?" On their first day back to school, many students in Hangzhou greeted each other this way. The coupons referred to the 100 yuan coupons each student received form the city government before the Spring Festival holidays. Over 260,000 primary school and middle school students were given coupons. They could use them in local stores and supermarkets, or to see movies and buy books. The same coupons have also been given to low income families in Hangzhou. Other cities, including Chengdu and Nanjing, also gave coupons to their citizens. More cities are expected to follow their lead. Why are local governments doing this? These programmes are all part of a broader effort in China to increase domestic demand in the face of the global financial crisis. The crisis has seriously affected China's exports and investments  . Many factories in southern cities have been closed down. Some companies are laying off workers or reducing their pay. The stock market and real estate market have been falling. In a time of financial crisis, people usually respond by saving money. They are uncertain about the future and are afraid that more difficult times may be ahead. Now many people are choosing not to spend money carelessly. Major chain stores have seen a sharp slowdown in sales, analysts say. But spending keeps an economy healthy. If people don't spend, there will be too many products in the market. Then shops will stop buying products from factories. When factories receive no orders, they close down. The workers there accordingly lose their jobs. Also, if people don't spend, the service industry suffers. The total result is that the whole economy breaks down. Issuing coupons is a practical and effective way to increase domestic demand in the current situation, said Jiang Zengwei, vice-minister of China's Ministry of Commerce. Hangzhou reported a rise in customers in local markets during Spring Festival holiday. However, issuing coupons is only a temporary measure. To increase consumers' confidence, the government needs to establish a sound secure social system in the long term. When people don't have to worry about education, health care and their pension, they will be more willing to spend instead of saving. Why are local governments issuing coupons?
To increase domestic demand in the face of the global financial crisis. To enable students to use them in local stores and supermarkets, or to see movies and buy books independently. To help those low income families in the global financial crisis. To show the government's ability to solve economic problems