Analysis Of Government Act In The Present Income Distribution In China

Using Sima Qian's 'Shan Yin Lun' for reference, the present situation of unfair income distribution is analyzed in this paper from the angle of government act. And on this foundation, some policy suggestion is proposed to regulate the act of government, narrow the income gap and to promote fair distribution. What Sima Qian's 'Shan Yin Lun' suggests towards government act is that government should conform to the object law, and then channel the people's business activities by economic means, regulate the people's activities by moral and legal means, but mustn't contend for the economic-interest with the people. At the present stage, the constant increase of income gap is just closely related to the improper conduct of government in the distribution field. On one hand, government over-intervene economy, even the administrative power participate in the distribution according to factors, which cause the unfair in primary distribution. On the other hand, government can't adjust the income distribution due to the weakness of redistribution function, can't keep a fair environment due to the absence of legal function. Using 'Shan Yin Lun' for reference, the policy suggestion can be proposed that market mechanism should play its part fully in primary distribution; government should macro-manage the economy by economic, moral, legal means. In the mean time, government should be 'Service-Type Government' who doesn't participate in primary distribution, but plays its role fully in redistribution domain.