Research For The Ricardo’s Income Distribution Theory And Draw Lessons From It About Our Country’s Reform Of Income And Distribution

Income distribution is one of the oldest and most important subjects in economics. As a master of the Classical School, Ricardo has made a systematic exposition of the principles of the land production in different classes and proposed the distribution policy that would promote the social overall benefit in his On the Principles of Political Economy and Taxation as early as1817before.Income distribution is the most pressing topic in our country nowadays. Although the central party and government in China have done lots of explorations and practice about income distribution system and provided the corresponding policy support, the difference of urban and rural, diverse areas and industries are expanding constantly in income. China’s Gini coefficient was0.16in the mid-80s and it has begun to more than0.4in2000and it has increased to0.48that is far more than the international warning line in2008. Besides, the gap has still a trend to be enlarged. So the need for the income distribution reform in China has long been evident.Based on the above understanding, through makes a systematic explanation on Ricardo’s income distribution theory and a review on China’s income distribution reforms, this article develops the modern value of Ricardo’s income distribution theory and draw lessons from it to reform of income and distribution of our country.