Public Economic Policy Research To Abate The Gap Between The Rich And The Poor

Over the past thirty years since the reform and opening up, China has achieved remarkable economic development. The living standards of all stratums have been continuously improved. However, due to the lagging social reform, the gap between the rich and the poor has been enlarged and the phenomenon tends to be deteriorated.This paper starts with the definition, the measurement and the judgment index of the gap between the rich and the poor. Then it elaborates on the current situation of the gap between the rich and the poor in China and its positive and negative influence on our national economy and society and explores the causes of the gap. Later, it points out the harmful consequences of the enlarging gap between the rich and the poor to the sustainable development of economy and society. If the problem is not seriously treated, the social stability will be challenged.The main part of this paper proposes resolutions to the problem from three aspects of public economic policy, namely, fiscal, tax and financial. It believes that the government should integratively apply these policies and create more job opportunities to abate the gap between the rich and poor so that all people can share the prosperity of national development.