| Since 30 years of reform and opening up, Chinese economy has maintained a sustained, rapid and healthy development momentum generally, the income level of the people has been improved greatly. However, Chinese economy has been at high-speed growth and created enormous material wealth, but also a problem of unfair distribution of income. There is a large income gap in low-income , vulnerable groups and high-income groups. The problem is that China must addressed during the period of economic restructuring at the initial stage of socialism.In the current Chinese society, unfair income distribution highlights the growing problem, which can be studied in four aspects, including the starting point is unfair, the process is unfair, the result is unfair, inter-generational is unfair. Unfair to the starting point mainly refers to unfair between urban residents and rural residents, urban workers and migrant workers in the country to enjoy the treatment of social security and industrial workers; unfair to the process mainly refers to urban-rural dual structure , the status of monopoly industries, regional development policy are different ,and rent-seeking due to inequality of income opportunity of power between different groups; unfair to the result refer to the gap between the income level of members of society is too large and too poor; unfair to the inter-generational mainly refers to the contemporary human has brought serious damage and over-exploitation of natural resources to increase revenue, the next generation people will be deprived of the conditions of access to income, which brought the offspring of the people by the loss of income.Unfair income distribution bright a serious harm to economic and social development. Unfair income distribution would lead to high-income class and low-income class gap is too large, the general decline in people's consumption capacity, lack of domestic consumer demand; will cause the consumption structure and industrial structure malformation; will cause economic over-reliance on the stimulation of investment, production capacity excess; will cause the formation of human capital have the role of constraints and obstacles; will cause a large number of labor disputes and transaction costs; inter-generational inequity will cause the current damage to the natural environment and resources over-exploitation, impact the development of future generations. Unfair income distribution will also lead to vulnerable groups"relative deprivation"enhancing, people have serious psychological imbalances and a strong sense of loss ,which will be vulnerable to social contradictions, conflicts and instability; will expand the size of vulnerable groups of Chinese society, is easy for the formation of society pyramid-shaped structure , is not conducive to the transformation and development of society.Achieve a fair income distribution has a great significance. In February 2007, Premier Wen Jiabao put forward: consolidating and developing socialism, we must better understand and grasp the two major tasks: one is liberation and development of productive forces, and greatly increase the material wealth of society as a whole; the other is the progressive realization of social equity and justice, greatly stimulate the creativity of the whole society and promote social harmony. The above-mentioned two major tasks are interlinked and mutually reinforcing an integrated whole, and throughout a series of different stages of development of long-term process of the historical period of socialism. In October 2007, Hu Jintao, the general secretary, emphasize a harmonious society of socialism with Chinese characteristics are the essence of property, to achieve fairness is one of the great historical mission to consolidate and develop socialism with Chinese characteristics, the field of the initial distribution and redistribution should attach importance to the field of fair, which in the report on the 17 delegation convention of party. The United States triggered a financial crisis and cause the global economic recession in 2008. The Chinese economic growth also led to greater impact, in such circumstances, to achieve a fair income distribution, improve income of low-and middle-class and vulnerable groups, to stimulate domestic consumer demand growth in order to achieve security economic, security employment goal, which are very necessary.In addition, in economic theory, the fairness should be one of the important principles to measure efficiency of the institution in addition to the performance. If the institution not only be able to achieve an equitable distribution of income, but also be able to improve efficiency through incentives, then the institution performance is optimal; in economic practice, the income distribution has transactions property and transaction costs, that is the"friction"costs of the institution running, achieve an equitable distribution of income can reduce such transaction costs, improve institution efficiency.The source of unfair income distribution are the conflict with the goal and the game between government and business organizations, business organizations and individuals, government and individuals, and the conflict with goal and the game of inter-generational, which is the conclusions from economic relationship. Revenue from the elimination of the root of causes unfair distribution, such as means of the price, financial tools and financial instruments of policy instruments short-term adjustment in the past, difficult to change the pattern of benefits curing, only through long-term based on mandatory and normative of the distribution institution, in order to make the solidify pattern of benefits to re-adjust, so that low income and vulnerable groups will benefit from the change, implementing a fair income distribution.From the theory of income distribution in economic, the implementation of fair income distribution can have some by drawing on. The analysis of Ricardo on wages, profits and rent are basic labor value theory, wages and profits to recognize the opposition, which can explain the current the Chinese question that wage of diverted profits; welfare economist Pigou and others thought of the monetary income brought great marginal utility to the poor, while a smaller marginal utility to the rich, should be so rich to the poor transfer monetary income in order to increase social welfare; Schulz believes that human capital plays a decisive role in wealth creation, ensuring the preserve of the material and increase the value of capital, should enjoy the right of companies to obtain compensation; the sharing of economic theory of Weizman consider business benefits should directly linked with wage through the index and to determine the share ratio.From the thought and theory of Chinese income distribution, the idea of ancient thinkers are simple, mainly put forward the views about people living in dire poverty for the society and the reality of disparity between the rich and the poor, lack strict logic, are standing on the position of the maintenance the feudal ruling class to consider the problem of income distribution, not from changing the status of the people, giving people the power to solve the problem of unfair distribution, has a great history limitation; Thinkers and revolutionaries of modern times have made a lot of idea in favor of fair distribution, and applied some to social transformation, but they are all in the old economic and political system, from the Western thought and experience to seek solutions, and then is not consistent the reality of Chinese society, some good idea can not be achieved in the old system with simply, weakness and compromise. Time in the planned economy, income distribution theory and institution is closely related with the political and economic situation of Chinese both inside and outside, have historical inevitability and progress, reflects the characteristics of public ownership economy. However, the planned economy, too much emphasis on fairness, egalitarianism is a cause of a serious imbalance of economic efficiency and personal benefits, seriously hurt the productive labor initiative and creativity of the masses of the people, leading to widespread economic inefficiency in the labor force, so that development lags behind the national economy, be long-term status of widespread poverty in a society. After reform and opening up,"giving priority to efficiency with due consideration to fairness"concept has been main base on income distribution under the conditions of the socialist market economy. However, with the unfair distribution of income and the increase of building a socialist harmonious society, efficiency is gradually replaced as a priority goal by fairness, could consider to implement changing"giving priority to efficiency with due consideration to fairness"to"fair appropriate, ensure efficiency, focus on ecology".Research based on the fair income distribution institution changes has the necessary set up in the analytical framework. Fair institution changes based on the rational assumption that should not be utilitarian and ignore social equity, which is economic man rational assumptions, but should be unify of utilitarian and welfare. A fair income distribution institution are scarce and difficult to transplant. Chinese income distribution institution has been in a non-equilibrium state. There are the potential immense external benefits that institution changes can bring in the future, including the external benefits of increasing income of the low-income and vulnerable groups, the external benefits of avoiding the loss of economic development, the external benefits of incentive effects brought efficiency, the external benefits of maintaining social stability, the external benefits of protecting the ecological environment and resources. In the study methods, we should avoid on limited to research by the two institution leaps and bounds, should focus on the specific analysis of institution changes.Income distribution institution changes should be decided by the comparative analysis of cost—benefit and ideology. From the view of the overall cost—benefit analysis, the individual cost—benefit analysis, the social cost—benefit analysis, the political cost—benefit analysis, the benefit of the income distribution institution changes is much larger than the cost; from the view of ideological, ideology has features to control society and human activity, create new ideas and under the guidance to create new state of society. Currently, the ideology of Chinese government and the public can ensure the implementation of income distribution institution changes. Income distribution institution changes based on the fairness is not a Pareto improvement, but a Kaldor improvement, that is, to reduce benefits as part of the people, and others to increase the benefits. In income distribution institution changes based on the fairness, the institution demand side are low-income and vulnerable groups to benefits loss, the institution supply side is government. The institution changes is a top-down government led mandatory institution changes. There are the primary action groups, sub action groups, social preferences total mechanism between the demand side and supply side, play a linking role. In the institution changes, we should also eliminate the formation of the path-dependent of vested interests to pursue benefit.From the view of comparative study of the economic institution, institution changes in foreign income distribution have experience can be learn from by Chinese. To the welfare state changes in the income distribution institution, the Swedish achieve equalization payment of subsidies, achieve different levels of income equality, and safeguard social equity through the redistribution of income between individuals; put every year most of the growth of GDP to welfare spending and to ensure that the society full employment through the tax system. In the United States, institution changes in income distribution set up high-income sectors for the personal income tax institution, improve the unemployment compensation institution, a sound institution of low-income families such as relief, in addition, the United States has also set up institution for charitable organization for donations to raise social welfare. These can be worth from China.There are also lessons to be learned from changes in foreign income distribution institution. Swedish income distribution institution to achieve a high level benefits of the people, but also equalization of income caused damage to the efficiency and demand-pull inflation and so on. Brazil has long been one-sided pursuit of economic growth, do not have a fair distribution of income policy, resulting in unfair distribution of income, leading to long-term social development lags behind economic growth, makes the middle and low income groups have been excluded from the modernization process, not only make the conflicts in the community, but also directly limit the expansion of total consumption of society, affecting economic growth, forming a vicious cycle. China should draw lessons from these countries to avoid the above problem.From the view of logical evolution, income distribution institution changes based on fairness can follow in such the route to run as the starting point of institution changes—the process of institution changes—the end of institution changes. The starting point of institution changes is the China's current institution of the initial distribution and redistribution, these institutions are in a state of non-equilibrium now, which represents low-income and vulnerable groups, the vast majority of Chinese society in the proportion, want to change existing institutional arrangements but have not yet change. Such a status of non-equilibrium of income distribution institution can brought about by the tremendous potential external benefits of institution changes.In the process of institution changes, from the coordination of conflict in the goal and the game between government, business and person, as well as inter-generation. The primary action groups should be industry associations, various workers unions, environmental organizations and so on. These organizations will be the institution demand-side, transfer system to the institution supply side, the government. The sub-action groups are information services organizations and legal organizations for institution changes, provide various services and help. The social income distribution preferences total mechanism should be the National Development and Reform Commission to set up and implementation, and implementation income distribution institution for the new supply based on the principle of fairness.At the end of the income distribution institution changes, new institution arrangements should be set up in the areas of the initial distribution, the redistribution , the third distribution and the generation distribution. The new income distribution institution should be based on change the growing curing society distribution pattern, implement at the expansion and liberation of the rights of low-income population and vulnerable groups, so that they receive a fair income; limit and restrict the rights of high-income groups to prevent them from access to unfair and unreasonable high income. Chinese income distribution institution changes necessary to increase income of low and middle class and vulnerable groups, reduce income of the high income people through unfair means to obtain. Therefore, in the area of the initial distribution and redistribution, the new institution arrangements for income distribution can be divided into two aspects: first, the expansion of low-income and vulnerable groups, make them to enjoy equitable distribution rights, to increase their income; second, institution arrangements to bound high income groups, prevent them enjoying an unfair distribution rights, to reduce the unreasonable high income. In the third distribution field, the new institution arrangements focused on incentives the rich donor and promote the development of non-governmental charitable organizations; in the inter-generational distribution field, the new institution arrangements focus on promote the development of circular economy, develop and use of new energy, the development of environment services. New income distribution institution arrangements can be the important measure to alleviate unfair problem of income distribution .
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