How to solve the widening gap between the rich and the poor in the process of marketization?

I. Definition of the gap between the rich and the poor

The premise of understanding the analysis of the gap between rich and poor in China is to correctly understand the concept of the gap between rich and poor. The gap between the rich and the poor refers to the gap in the actual possession of social wealth caused by the different social, political, economic, cultural status and environment of members. It embodies certain material wealth and spiritual wealth. The gap between the rich and the poor includes income gap and wealth gap. [1] The former is mainly an economic problem; The latter is manifested in personal education level, scientific and technological level and ability, ideological and cultural literacy, intellectual property rights, social visibility and so on. Social problems are mainly caused by the comprehensive reflection of various social relations such as personal social status, lifestyle, mental outlook and health status in a certain period of time.

Second, the analysis of the gap between the rich and the poor in China

Gini coefficient is an important analytical index used to comprehensively investigate the income distribution differences of residents in various countries in the world. Proposed by Italian economist based on 1922. It reflects the quantitative limit of income distribution difference and can effectively warn the critical value of qualitative change of polarization, so it is the most feasible method to measure the gap between the rich and the poor. Generally speaking, the Gini coefficient is below 0.2, which means that the income distribution among residents is highly average, 0.2-0.3 means relative average, and 0.3-0.4 is more reasonable. At the same time, 0.4 is usually regarded as a warning line for the income distribution gap between the rich and the poor in the world. 0.4-0.6 means that the gap is too large, and more than 0.6 means that it is highly uneven. Accordingly, the gap between the rich and the poor in China has exceeded the international warning line. According to this year's survey data, China's Gini coefficient is still rising. The gap between the rich and the poor in China is as follows:

(1) The income gap between urban and rural residents is widening. Recently, China Academy of Social Sciences issued the Green Paper on Population and Labor (2008), pointing out that the income gap between urban and rural residents in China has widened in all directions. In the past ten years, the absolute income gap between urban and rural residents in China has expanded by nearly 12 times. The data shows that from 1978 to 2007, the per capita real disposable income of urban residents in China increased by 7.5 times, and the per capita net income of rural residents increased by 7.3 times. However, since 1990, the growth rate of farmers' income has been significantly lower than that of urban residents, and the absolute gap between them has widened year by year. 2007 is the biggest gap since the reform and opening up, but the income ratio of urban and rural residents has expanded to 3.33∶ 1, and the absolute gap has reached 9646 yuan. [2]

(2) In addition to urban and rural areas, the income gap between industries in China is also expanding significantly. Due to the defects of imperfect legal system and imperfect market competition mechanism in the development of market economy, and the relevant protection of national policies, the phenomenon of industry monopoly still exists. At present, monopoly industries mainly include electric power, telecommunications, civil aviation, railways, petrochemicals, finance, insurance, tobacco, coal, real estate and other departments. These monopoly industries compete unfairly with other industries by virtue of the privilege of monopoly operation and the special protection of the national government, thus obtaining high monopoly profits and widening the gap between industries. Recently, an evaluation report made by Peking University Capital Development Research Institute pointed out that in Beijing, the wage growth rate of employees in high-income industries is faster than that in low-income industries, further widening the gap between them. For example, according to the report, the annual salary of employees in the securities industry, air transport industry and banking industry can reach more than 654.38 million yuan, while the average annual salary of employees in the textile industry, agriculture and stationery manufacturing industry is less than 20,000 yuan. [3]

(3) The gap between the rich and the poor between regions has widened. The gap between the rich and the poor between regions is mainly manifested in the gap between the east and the west. According to the data of the National Bureau of Statistics, the per capita GDP of 10732 yuan in the eastern region and 4302 yuan in the western region in 1999. By 2005, the per capita GDP of the eastern region was 22,200 yuan, and that of the western region was 8,970 yuan. In the past six years, the per capita GDP gap between the east and the west has expanded from 6430 yuan to 13230 yuan, an increase of more than 1 times. In 2006, the total GDP of western 12 provinces, cities and autonomous regions was less than 4 trillion yuan, accounting for about17% of the national GDP; There are three provinces with GDP reaching 2 trillion yuan in the eastern region, including 2150 billion yuan in Jiangsu province, 2.2 trillion yuan in Shandong province and 2.5 trillion yuan in Guangdong province. From this set of data, it is not difficult to find the obvious gap between the east and the west.

Third, ideas and countermeasures to solve the current widening gap between the rich and the poor in China

Judging from the present situation of the gap between the rich and the poor in China, although the income gap among social members has not yet reached the degree of polarization, if the gap between the rich and the poor continues to widen, it will lead to a series of social contradictions and problems, and even threaten social stability and security. Therefore, relevant measures should be taken to narrow the gap between the rich and the poor in China.

(a) gradually realize the integration of urban and rural areas and promote the adjustment of employment institutions. At present, the most important task is to eliminate the unfair and dual policies and management between urban and rural areas in housing, employment, social security, education, medical care, taxation, finance and other aspects, and guide the orderly transfer of rural affluent labor. [4] To this end, we should vigorously implement the reform of the household registration system, gradually realize urban-rural integration, completely eliminate urban-rural barriers, dredge the channels of population urbanization, promote rural population mobility through the reform of the household registration system, and promote the rational division of labor between urban and rural areas. At the same time, give priority to the development of tertiary industries such as finance, telecommunications and insurance, which are closely related to the development of rural industries, so as to serve the construction of small towns.

(two) to break the monopoly of the industry and narrow the income gap between industries. The government should take measures to reduce the market access of non-monopoly industries and create a level playing field for the development of market economy, so as to eliminate or reduce unfair trade between industries and narrow the income gap between employees in monopoly industries and non-monopoly industries. Therefore, in order to further improve the socialist market economic system, we must restrict and reduce market monopoly through legislation, resolutely oppose monopolistic price behavior and crack down on unfair competition. In addition, it is considered that monopoly tax should be levied on some monopoly industries whose personal income is obviously higher than that of other industries. In terms of taxation, it is necessary to support the development of low-income industries and difficult industries and ensure the basic income and livelihood of their employees.

(3) Deepening the reform of the income distribution system. To control the income gap within an appropriate range, we must give consideration to efficiency and fairness. In the report of the 17th National Congress of the Communist Party of China, Comrade Hu Jintao promised to narrow the widening gap between the rich and the poor in China and improve people's lives. He said, "The relationship between efficiency and fairness should be properly handled in both initial distribution and redistribution, and redistribution should pay more attention to fairness"; He also stressed that it is necessary to "increase the proportion of labor remuneration in the initial distribution". In addition, in order to give full play to the role of taxation in regulating the income gap, it is necessary to formulate a reasonable personal income tax threshold and progressive tax rate, as well as levy inheritance tax and high consumption tax. We should also support and help rural development by increasing public expenditure and financial transfer payments.

(4) Improve the socialist security system and maintain social stability. [5] Adhere to the basic pension and medical system combining social pooling with individual accounts, further improve the unemployment insurance system, improve the minimum living security system for urban residents, strengthen the construction of rural social security system, improve rural medical insurance and social insurance system, and promote rural stability and development. Market mechanism pursues efficiency, and social security should pay more attention to fairness. Through the effective redistribution of social security, people can share the fruits of economic and social development and establish the foundation of social interests, which is conducive to resolving social contradictions, maintaining social stability, achieving social harmony and creating conditions for further economic development.

(5) Encourage the development of charity and form a three-time distribution pattern. Some scholars call the "charity mechanism" the "triple distribution" mechanism. To narrow the wealth gap, there should be three kinds of distribution: the first distribution must emphasize efficiency, that is, people with knowledge, innovation and diligence can get more labor remuneration and get rich first; The secondary distribution should be fair, and the government should help the disadvantaged groups through taxation and establish a comprehensive, systematic, moderate, fair and effective social security system; Social responsibility should be emphasized in the three distributions, and the rich should take part of their wealth on a voluntary basis to help the poor improve their living, education and medical conditions. In addition, the government should give preferential treatment and care to charitable enterprises in terms of taxation and investment project approval, and encourage more entrepreneurs to participate in charity and repay the society.