Fair Income Distribution And Economic Growth

The important premise of economic growth is the realization of fair income distribution. As the creation corpus of national income, the realization of firm's fair income distribution is significant to the realization of the fair distribution of citizen's income. There is an unfair distribution in firms due to the absurdity of the current institution of property rights. Thus it is theoretically and realistically worthwhile to conduct the research of carrying out the fair income distribution in firms in order to promote citizens'fair income distribution and the stable growth of economy.Based on the foundation of theoretical analysis of the relationship between the fair income distribution and economic growth, the paper argues that there is a kind of positively interactive relationship between the fair income distribution and economic growth, which exerts mutual encouragement, promotion and influence: the continual growth of the economy can provide material foundation for the improvement of the income distribution condition, then promotes the realization of the fair income distribution. The more important is that the improvement of income distribution condition and the fair income distribution can effectively stimulate the factor owners, raise the efficiency of resources installation and elevate the quality of economic growth, thus promote the growth of the economy. Then in the process of economic development, an integral mutual circulation mechanism can be formed which is characterized by the mutual promotion and drive of"economic growth—fair income distribution—economic growth"and"fair income distribution—economic growth—fair income distribution". The micro basis of fair income distribution is the firm's institution of united property rights. The establishment of the firm's institution of united property rights which is the combination of factor property rights and labor property rights can fulfill the fair income distribution essentially. Based on the foundation, the article further analyzes the mechanism of the institution of united property rights for economic growth promotion. The institution of united property rights can not only raise the creative level of the manpower capital and the level of technical innovation, but also can optimize firm resources and innovate the system of income distribution, as a result can promote economic increase stably. In the end, the article analyzes two kinds of unjust manifestations and the influence of the firm's unfair income distribution to the economic growth, and a counterplan to current unfair income distribution in the firm is proposed: reform of the current firm's institution of property rights and establish the firm's institution of united property rights which is the combination of factor property rights and labor property rights. The firm's institution of united property rights could realize the fair income distribution in the firm, then promote the realization of citizen's fair income distribution and the economic growth.