The Impact Of China's Monopoly Industries On Social Equity And Regulations On High Income Of Monopoly Industries

With the development of China's economy, the average income of Chinese citizens has risen. But meanwhile, China has entered into a phase with rapid development as well as deep contradiction. The Gini Coefficient of China has been over the warning mark since mid-1990s. The income gap is clear and is widened. The income difference among different industries is obvious, especially the difference between monopoly industries and others. High income from monopoly industries not only affects the fairness of income distribution in China, but also hinders the reform on China's economy, which in turn becomes a barrier to economic growth. Whether the issue of income distribution can be dealt well influence the reform results, social welfare and building a harmonious society.This dissertation firstly gives a brief introduction about the theory on monopoly and income distribution home and abroad, and then studies the status quo of China's monopoly industries. After that, this dissertation illustrates the impact of high income from monopoly industries on social equity and economic growth, which includes undermining social welfare, lowering resource allocation, leading to contradiction between demand and supply, as well as causing corrupt. The impact of income distributing unfairness includes blocking economic growth, disturbing distributing orders and impairing social stability. At the end of this dissertation, suggestions on regulating high income from monopoly industries are brought up based on international experiences and domestic atmosphere studies. These suggestions include reforms on monopoly industries, alteration of government responsibilities, perfecting supervising system, etc. Only in this way can the issue of distribution unfairness be solved.