Studies On Relations Between Income Distribution System And The Socialist Harmonious Society

This paper studies on income distribution system from the perspective with distribution and harmony combined, expected to make a breakthrough in the traditional mode of thinking.On theoretical research,Firstly, it studies income distribution theories in traditional economics with "harmony" perspective, and after that analyzes some ideas of harmonious society and their distribution programs. At a result, integration of distribution theory and harmony theory is realized.Secondly, correlation analysis is made between income distribution system andharmonious society. Put it simply, it is a kind of goal and way relationship——rationalincome distribution system will contribute to social harmony, while irrational income distribution system will bring obstacles to building Socialist Harmonious Society. On one hand, reasonable income distribution system should have the attributes of growth, flexibility, fairness, efficiency, incentives and security, which are benefit to improve the wealthy, humane, social fair, coordinal, smooth and controllable nature of the Harmonious Society. On the other hand, reasonable income distribution system can promote social harmony through performing its functions of coordination, integration and easing of tension. Meanwhile, unreasonable income distribution system will obstruct social harmony through economic, political and social ways.Finally, it produces 5 theories: System Coordination Theory, Social Tension Theory, Harmonious Efficiency Theory, Vicious Circle Theory and Path Dependence Theory. According to System Coordination Theory, Harmonious Society should have a perfect integration mechanism which income distribution system could be; According to Social Tension Theory, to eliminate social uncertainty and tension, the income distribution system should play a "lubricant" role by helping the low-income and sickness group; According to Harmonious Efficiency Theory, the Harmonious Society should pursuit not only economic efficiency but also social or political efficiency, and the income distribution system just should embody generalized fairness including starting points, opportunities, rules and wealth; According to Vicious Circle Theory, irrational distribution system will lead to vicious cycles in many areas, i.t. low growth cycle, low employment cycle, low human ability cycle, low stability cycle and inefficient competitiveness cycle. So the income distribution system should focus on consumption, employment, education, law and the market order to stop every vicious cycle; According to Path Dependence Theory, the distribution system reform should pay attention to and try to conquer the strong path-dependent effect. All in all, it believes that to build Socialist Harmonious Society, the income distribution system should focus on such things as follows: overall coordination, improvement of low-income group, generalized fairness, strengthening of key links in vicious cycles and reform in progressive step.On practical research,At first, it is believed that different economic development models with different modes of income distribution system will lead to different levels of social harmony. Countries of European model maintain social harmony mainly by sufficient social security and welfare system during the period of redistribution. Countries of North American model maintain social harmony mainly by ensuring equality of opportunity rather than equality of income or wealth. Countries of East Asian model maintain social harmony mainly by equal distribution of wealth and social responsibility. As to the results, generally, a country with smaller income gap and more social security has a higher level in social harmony and stability.Second, most countries in the world improve social harmony by rational income distribution both in process of initial distribution and redistribution. In process of initial distribution, some countries emphasize good labor relations, insurance of minimum wage and guarantee of fairness in competition, so that such functions of income distribution system as security, tension-easing, incentive and fairness are realized. In process of redistribution, some countries regulate residential income through tax and security system, so that such functions of income distribution system as security, wealth equity are realized. But it should also be awared that excessive welfare system will also bring adverse effect on social harmony.Third, it recalls Chinese income distribution system reform in several economic development periods, which are divided into three stages on perspective of social harmony. In earlier egalitarian stage, absolute equality in wealth was believed to be social fairness. In widening-income-gap stage, incentive attribute of distribution and economic development was focused on. In compensation stage, low-income group was paid more attention to promote social harmony.Fourth, after 3 stages of income distribution reform in our country, we are facing both favorable and unfavorable situation in building Socialist Harmonious Society. On favorable aspect, by breaking egalitarian, production efficiency was improved; by rising income of urban and rural residents, living standards have markedly improved; by allowing production factors to participate in the distribution according to its contribution, production factors' efficiency was greatly enhanced; by providing more and more education and social security, social justice was gradually guaranteed. All these are favorable factors. On the other hand, problems in distribution make some obstacles to Socialist Harmonious Society. For example, a stable income growth mechanism has not yet formed and part of our people are in poverty; with gap between rich and poor expanding, economic and social contradictions are rising; equal opportunities have not be guaranteed in the initial distribution area; regulating means in redistribution are not effective enough; relationship between fairness and efficiency has not be effectively dealt with, so that large income gap and egalitarianism coexist; institution and management mechanism are not effective enough to deter illegal and disorder distribution.Finally, it makes the conclusion that we should continue sticking to reform and perfection of our income distribution system for a long period. Especially, economic growth, fairness, efficiency, inspiring, security have to be considered combined, and at the same time consumption, employment, education, legal and other key links should also be strengthened as complementary measures. On this basis, income distribution system reform in the future should adhere to the ideas as follows: to solve the problems of income distribution by persisting in economic development; to balance economic efficiency and social fairness; to form a fair market competition environment which will provide equal opportunity and fair rules; to build an effective regulating mechanism in redistribution with tax, security and social relief aid system; to complete regulations and management system as a protective means, itc.