The Analysis On Government Regulation For Residents' Income Distribution Gap In China

Since the reform and opening up, Chinese economy has increased rapidly and the people's living standards have improved significantly. Although the national economy grows, the income level of the low-income groups in China increased slowly. During the recent ten years especially, there are several problems in our income distribution, such as unfair income distribution and the constantly widening income gap. Due to these problems, social harmony and commonwealth are affected seriously. In order to let the people share the fruits of development, we have to develop economy rapidly in the first place, and at the same time increase the income level of middle-income and low-income groups; and we also have to realize full employment and decrease the gap between the rich and the poor.In the field of economics, the government regulation for economy has researched for a long time. Although economy regulation has its own system, different economists have different viewpoints on the necessity, the content, the scope, the path, the degree and the effect of government regulation. In other words, we have not yet formed a unified system of government regulation so far. According to the expression of government regulation which is performed by scholars at home and abroad, I have proposed the meaning of the government regulation: In the scope of economic activities that the government can influence, in order to achieve certain socio-economic objectives, by the formulation of laws, rules, systems, policies or the usage of a variety of legally binding limitations, restrictions, and regulatory means, the government can regulate all types economical entities in the market economy, and make those regulatory means can be effected and constrained by each other so as to influence the economic currents, as well as correct, improve and supplement economic fluctuations caused by the market failure. Based on what I have mentioned, the first part of the paper analyzed the direct and indirect means of government regulation, as well as legal means, economic means, planning means and administrative means which are dependent by the regulatory system. I also analyzed the economic and social aspects of government regulation, as well as goals that government regulation may achieve, which are preventing monopoly, correcting error information, narrowing the gap in income distribution, improving the social security and so on. Finally, I elaborate the significance of government regulation on the gap of income distributionTracing the evolution of our country's income distribution system, we aim to understand more about the direction of the income distribution system and policy since our country founded. We analyze the performance of the overall income gap, urban-rural income gap, income gap between areas and income gap between industries so as to explore the causes of the geographical factors, institutional and political factors, monopoly factors, market failure, weakened redistribution, corruption, rent-seeking and other unsound legal system which can widen residents'income distribution.This paper reviewed situations of residents'income distribution in America, Japan and Taiwan. In addition, it also analyzes the income distribution system, taxes, wages, social security, education, financial subsidies and some other effective measures of government regulation in different countries and areas. From these effective means and experiences of government regulation, China's government regulation can have some enlightens on the gap of income distribution.At last, this paper has proposed the institutional thought to restrain our country's income distribution gap. First of all, our government should establish a fair objective mode of income distribution; in other words, we should found the matching social system of education, employment, and social security. Second, our government should strengthen and supervise the regulation of its initial distribution. Third, our government should rebuild the government regulation acts on income distribution, avoid being absent and offside during government regulation, and try to establish a service-oriented government. At last, our government should propose suggestions on finance, tax, wage so that the problem on large gap of income distribution can be inhibited greatly...