This paper asserts that the economic slowdown in China is caused by the short-term demandside shock but not by supplyside factors- namely，the disappearance of demographic dividend.Therefore，implementing stimulation policy is a wrong choice in the face of the slowdown.In addition to creating zombie firms and zombie financial institutions，resulting in overcapacity in real economy and infrastructure，and forming economic bubbles，stimulation policy also tends to harm labor market.That is，a growth rate exceeding growth capacity tends to distort labor market signals by weakening incentive for education and inflating wage rate in faster pace than that of the increase in labor productivity.The paper suggests that instead of implementing stimulation policy，reform of public policy can help enhance potential growth rate，balance demand factors of the growth，and ease the pressure of labor cost increase.