Research Into The High Income Of Monopoly Industries In China

Firstly, the writer briefly introduces the problems and gives definitions, research target, methods and structures, etc. All the illustrations are based on the definitions and the introductions beforehand. The government-oriented economy has been monopolizing for a long time, which is a key and indispensable groundwork of the economic development. Meantime, monopolized industry, with large scale and low efficiency, is the neck of economy in China. With the deep process of economic reform, the plan-oriented economy is broken, and the monopolized industry becomes the last part. From the practical experience of China's reform, the state-owned enterprises of monopolized industry are the most difficult and arguable part to deal with. As a part of national economy and an important part in fundamental facilities and market operation, it's indispensable. So if we ignore this market, the whole market will become a half market, then the economic efficiency will lag behind. With the establishment and improvement of market-oriented system, the state-owned enterprises break the outdated system and the reform concerned becomes a kind of tendency. Because the monopolized industry relates too much to the fundamental industry, and relates too much to the production and living standards of ordinary people, the efficiency and equity become the focus of the society. The thesis establishes an outline of analysis, analyzing the reasons of high salary and welfare on monopolized industry in economics models.Secondly, the thesis checks the salary and welfare of workers in monopolized industry according to the 2005 statistic yearbook of China. The conclusion of it is that the salary income of workers in monopolized industry is really much higher than that of the workers of the majority of other enterprises whether compared in the perspective of absolute value or growth rate. It is higher than that of common competitive enterprises and the average level of all other kinds of enterprises. The productivity of monopolized industry is rather low, which creates a lot of waste. Monopolized industry infringes the consumers'right. What's worse, it makes the consumer afford more costs.Thirdly, the thesis analyzes the unfavorable effects of the high salary and welfare in monopolized industry from the perspectives of economic and social effects according to present related facts and statistics. The writer believes it not only concerns the country, customers, and competitors and even monopolized industry itself, but also influences social psychology, moral and values.Fourthly, the thesis introduces some solution to these problems. The first is to setting up competitive market system, in order to promote its long-term development. In order to establish this system, we should bring in more foreign and folk capital, and perfect the institution of ensuring the benefit of investors, promote more reforms to change the existing firms to the limited companies, if possible, to quote on the stock markets. Second, establishing scientific price of monopolized industry and price administration system to stimulate related firms to reduce costs. Reducing the costs in looking for the unparalleled information can lower the management costs. The price of single service can create the flexibility. All of these can form the effective charging system and make the exact reward means clear. As the time is given beforehand, it makes the long-term and planned marketing activities possible. So it's necessary to substitute the investment-return model for stimulated model, to solve the deficiency in the structure of management, which is beneficial to normal the income of monopolized industry. At last, we should set up the related governing system to solve the high-salary problem, which relates too much to the exact benefit of ordinary people. Nowadays, China has established the relevant system to balance the resources. The key problem is how to remedy the disadvantage of market while we benefit from it. The regulation and the market allotting as well as the ineffective management of government can cause the enlargement of the income margin. For example we can't take effective measures to control the high salary of monopolized industry. The effect of government should be transformed to scientifically manage and perfect the law and regulations to balance the income allotting, which are challenges to government. Based on the intelligence and the experience of government, as well as the achievements we've made, we have a steady and well preparation.