The Analysis On The Administrative Monopoly Factor Of The Widening Gap Between The Rich And The Poor In China

The gap between rich and poor is the result of a socio-economic operation, but it is also with the socio-economic development of mutual influence. Excessive egalitarianism and the large income gap will affect economic efficiency. At present, the rapidly expanding gap between rich and poor has become a hot issue. More importantly, the large gap between rich and poor will also affect the stability of the entire community. At this stage China is in a need to properly deal with economic growth and a widening income gap in the relationship between the sensitive periods. May 26, 2006, the Central Committee Political Bureau held a meeting specifically to discuss and study to reform the income distribution system and standardize the order of income distribution problem. Therefore, the reasonable adjustment of income distribution, regional and industry efforts to ease the income gap between the trend of expansion for promoting economic development, maintaining social stability and building a socialist harmonious society important element.There are a number of reasons causing accelerated expansion of the gap between the rich and the poor for, including natural, historical factors and the policy, institutional and other factors. Social policy factors on the impact of the gap between the rich and the poor is essential. In many social policy formulation and implementation, administrative monopoly factors play a more important role. A direct result of administrative monopoly is to make administrative monopoly industries unreasonable high-income, break the market economic order, lead to unbalanced development between different regions, such as rent-seeking and corruption phenomenon. The consequences will have an important impact on the gap between the rich and the poor for China. Whether or reality, from the economics of the data analysis we can obviously see that the monopoly impacts the widening gap between the rich and the poor. We must clearly try to break the monopoly goals, promote the pace of enterprise reform, improve the system of income distribution, and strengthen anti-administrative monopoly building of the legal system and the mechanisms. It is the only way to effectively regulate the negative factors of monopoly industries, and reduce its widening of the gap between rich and the poor of China.This article is divided into four parts:The first: theoretical analysis on the impact of income gap by administrative monopoly of China.Through economics model of administrative monopoly we can analyze that administrative monopoly industries in the product markets and the labor market has an access to gain exorbitant profit, and return it to every worker in different forms. That process may lead additional revenue, so realize a high wage of monopoly industries. At the same time, administrative monopoly industries in China also exist in absence of owners, which leads to the unreasonable distribution of profits and rent-seeking. Through market segmentation theory, we can also find the objection of the labor market. More people are unable to easily access the high income of monopoly industries, so making administrative monopoly industries and competitive industries in the income gap has to be long-term existence.The second: real situation analysis on the impact of the gap between rich and poor by administrative monopoly of China.Through a great deal of data analysis, it is clearly found that the income of administrative monopoly industries in China. Firstly, the comparison between the average wage of workers in monopoly industries and workers in other vocations shows the overview of monopoly industries'high income. Secondly, with electricity, gas and water production, supply industry and agriculture as an example, I analyze the high growth of monopoly industries, to explain the welfare level. Summed up the overall data, it is obviously found the situation of high-income, high-growth and high welfare of administrative monopoly industry in China.The third: significances of breaking the administrative monopoly.Breaking the monopoly has an important significance on controlling the gap between rich and poor in China. There are five aspects: firstly, it can reduce the gap between rich and poor by administrative monopoly industries' high income. Secondly, it can reduce the gap between rich and poor by income indifferences of urban and rural areas. Thirdly, it can reduce the gap between rich and poor by development differences of areas. Fourthly, it can reduce the gap between rich and poor by distribution of benefits. Fifthly, it can reduce the gap between rich and poor by rent-seeking and corruption.The fourth: countermeasures of breaking the administrative monopoly.In accordance with China's reality, I suggest that it is not only to make clear breaking goals, promote the reform of enterprises, improve the system of income distribution, but also to strengthen the building of the legal system and mechanisms of anti-administrative monopoly. It is the only way to effectively control the impact of the gap between the rich and the poor by administrative monopoly in China.