The Problem Of Income Gap In China And The Research Of Countermeasures

Based on the relationship between economic growth and income gap as the starting point, thispaper analyses the relationship between economic growth and income gap at the present stage inChina with the empirical analysis. Studies have found that, along with economic growth, China’sincome gap is widening trend; At the same time, although the income gap has a promoting effect oneconomic growth at some extent, the effect is very limited and short duration. Theoretical analysisalso proves that the widening income gap will cause bad effect on economic growth. Based on this,this paper argues that some governance measures should be taken to minimize the negative impactof the widening income gap on economic growth. Then, this article makes a distinction between thenormal and abnormal income gap and discusses the cause of two kinds of income gap respectively.On this basis, this paper makes a distinguish between normal and abnormal income gap, anddiscusses the cause of two kinds of income gap respectively. Then control measures for theabnormal income gap is put forward, while the suitable adjustment of the normal income gap can bebrought out by perfecting the perfecting the tax system.