Real Example Analysis Of Personal Income Difference In Our Country

The personal income distribution always is an outstanding topic during the economic developing in today's China, which could deeply affect the establishment of the market economic system, the continuance and the growth of national economy, and social stabilization. Using the methods of Economic Growth and Social Science, a positive analysis was done about the personal income difference in today's China. Then, the relationship of the personal income distribution and the economic development was studied. Some suggestions of policy were given.At first, this paper introduced briefly and reviewed the basic theories of income distribution and the current studying situation both at home and abroad. A series of positive analysis were done about the state of the personal income difference between and inside the urban and rural China. It was said that it really has relevant relations of shouldering between the development level of the regional economy and the personal income difference.Secondly, the influence of the personal income difference in China on the economic development was conduct into three aspects. First aspect was about the economic growth. Through an analysis of key element of our country' economic growth, it enumerated three basic ways of the economic growth influencing income distribution, and drawn the conclusion that the inequality is unfavorable to the economic growth. The second respect was about the consumption. A pattern of the personal income distribution composed of high, middle and low income stratums in China was demonstrated. Then, it was proved by using the new model that the enlarged meeting of personal income difference reduces people's average propensity to consume, then to weaken the inherent pulling force of the economic growth directly. The third respect was an impact on investment demand. The influence of the personal income difference in China on the investment demand was conduct into four aspects. It may be both advantageous and disadvantageous.Thirdly, an international comparison also was down. Through comparison, a conclusion was drawn that it is the general characteristics of these countries that the income difference was expanded. Although we should acknowledge and allow the existence of the rational personal income difference, but couldn't make it melt and magnify inherently, on the other hand, we should take the corresponding measure to...