China Income Gap Is Widening Causes And Countermeasures

The income distribution gap is the focus of theoretical research, and it is also a very realistic economic issue.This paper first analyzes the present situation of China's income gap and thinks that China's income gap is continually widening.As for the reason of the ever-widening gap, there are many perspectives in theoretical circles.But the paper thinks China's widening income gap is the root cause of the production factors participating in the distribution of income.Responding to the income gap, we must address the underlying causes and take corresponding measures.This paper is divided into three parts.The first part mainly analyzes the present situation of China's income gap.After the reform and opening up, China's gap between regions, between urban and rural areas and between different industries has been growing larger.The Gini coefficient has been showing rising trend, which is already higher than the internationally recognized warning line of 0.4.Compared with the international, China's income distribution gap is one of the highest in the world.The second part firstly introduces the analysis of the causes of China's widening income gap in theoretical circles, which can be attributed to the illegal income, institutional loopholes, social public policy shortcomings, the development of the market economy and other factors.The paper thinks China's income distribution ever-widening gap is the root cause of the production factors participating in the distribution of income.Because the development of the market economy conditions, the production factors participating in the distribution of income has become inevitable.However, the production factors owned by the main elements are different between quantity and quality, which is bound to bring the income gap.This is an unavoidable problem. The third part, aimed at the income gap brought by production factors in the distribution of income, raises some suggestions.The government must correctly understand the existence of the income gap, and should strengthen guiding public opinion, lead people to correctly understand the causes of the income gap, to divert people's income gap widening discontent.Meanwhile, we should reasonable adjust and control the income gap so as to avoid polarization.Also we should perfect elements of fair competition distribution system, improve the legal system to standardize the order of distribution and establish a social security system with compatible economic development.China is a socialist country, and people are the masters.Reform, opening up and the fruits of economic development should be shared by all the people.The government must bear the primary responsibility, take reasonable measures to adjust income distribution mechanisms to control the income gap widening.