Will Political Capital Increase Personal Income And Happiness

With the appearance of politics, Human society stepped into the ages of class struggle. Some of the Social elites became the Ruling class through endless struggle. After the reform and opening up policy, China obtained great achievements in economic development and became the second largest economy in the world. Chinese government’s accountability is now at a record low. Many people even think if a person wants a high salary and happy life, he’d better become a member of Chinese Communist Party and works in State-owned enterprises.This article based on the background is trying to use the data of Chinese General Social Survey to explore whether the political capital will significantly increase personal income, whether political capital will significantly improve the individual’s Happiness and whether there is income gap between party members in the state sector and the non-state sector.There are four sections of this article. The first chapter is the introduction of this article, which contains the background of the article, problems studied in this paper, research methods, structure and shortcomings of the article. The second chapter is the review of literatures related to this article. The third chapter is mainly about empirical analysis of the problems discussed in the article. The fourth chapter describes the recommendations and conclusions of this paper as well as the social impact of the conclusions.According to empirical study, the conclusions of this paper are below:fist, those who have political capital have a higher income than those who have no political capita. Second, there is a positive correlation between happiness and political capital, third, party members who work in State-owned enterprises have a higher income than those who do not.The theoretical explanations of the first conclusion:(1)loopholes in the system are well known by the party members and are often used by them to get extra income;(2)party members accept bribes,(3)Inadequate supervision and punishment. The theoretical explanations of the second conclusion:(1)political capital increases income and the income increases a person’s income;(2)Party members are often appreciated by social society, which will increases a person’s happiness;(3)Party members are often appreciated by themselves, which will increases a person’s happiness. The theoretical explanations of the third conclusion:(1)Monopoly leads to high profits which will increases the income of party members who work in State-owned enterprises;(2)Party members who work in State-owned enterprises have a high probability of being promoted.The methods used in this article include normative research method, descriptive statistics method, empirical analysis method and comparative analysis method.Nowadays Chinese government’s accountability is now getting lower and the gap between rich and poor continues growing if this situation has not been changed. So the article gives some suggestions:(1)regulatory authorities and the judiciary must be independent from the government restraint;(2)Salary system of State-owned enterprises should be reformed in order to become more scientific. The salary system must be related to the performance of enterprise;(3)maintain the market fair and curb the abuse of administrative power.The author also found some shortcomings. First, the author uses party membership represents political capital which may lead to inaccuracy; second, the article use China general social survey of2005to analysis and the data we use from the database was collected so long ago, so some data from the database may be different from the actual situation; third, the questions from the questionnaire are so intimate that most people would not give us the actual answers.