Research About The Impact Of Widening Income Gap On Economic Development In China

Income gap, an old and practical issue in Economics, is unavoidable in the development process of any society. Personal income not only affects closely people's living standard, but also plays an important role in the national stability and economic development. It is a barometer of social economic activity as well as a"inner stabilizer"of national economic development. The comprehensive power of China has been ever-increasing since its reform and opening up 30 years ago, which brings the rise of general level of people's income, but the imbalance of income gap also shows up. There are many reasons to account for the widening income gap which is not only the stage result of social development, but also the consequence of a series of state policy. The widening income gap is a double-edged sword to our economic society. China is now under the stage of constructing well-off and harmonious society, controlling the income gap is of great importance and becomes a hot topic in the academic circle. It is of great theoretic and practical significance to construct harmonious society, establish and perfect socialist market economic mechanism, keep the good and rapid economic development, and finally realize common prosperity of all the people base on the theoretic analysis. This paper analyzes the main indicator of measuring income gap, expounds the situation of people's income gap from four perspectives such as general gap,gap between city and the countryside, gap between different industries and gap between different regions, explores the effects by widening income gap in dichotomy, points out the reasons of widening income gap and finally puts forward the policy suggestions to narrow the income gap.