Abstract: Expanding dom estic dem and is not only a matter of expediency to cope with the international financial crisis,but also a long-term solution to make people live and work in peace,and our country stable and prosperous.Expanding dom estic dem and,which isclosely related to the livelihood of the people,isan in evitable and optim alchoice to China.Currently,there stillexist some problems in expanding domestic dem and in China,like the income and consumption is uncoordinated;the expenditure in basic public servicesisless,the investm entratio is too high,and the urbanization is incomplete,etc.So,the government should solve the problems of people's livelihood,actively construct the long-term mechanism to expand consumption demand, optimize the investment quality and benefit,and vigorously prom ote the new urbanization construction, in order to further expand domestic dem and,and realize the expansion of domestic demand and improvement of people's livelihood.