Reaearch On Countermeasures To Solve The Extreme Disparity Between The Rich And The Poor In China

As the development of the socialist market economy, people’s living standards have greatly improved but there is the gap between rich and poor. However, China’s Gini coefficient was still high for a long time. In recent ten years, the Gini coefficient is more than 0.46 every year, and far higher than the international warning line of 0.4. So to study the causes of the gap between rich and poor and research on narrow the gap of wealth problem of the status quo and put forward relevant countermeasures is not only has theoretical significance, also has very high practical significance. This paper analyzed the meaning of the gap of wealth, and discussed the distinction between the gap of wealth and polarization strictly, and the paper hold that it is difficult to avoid the gap of wealth phenomenon in the primary stage of socialism, but not allow it to further development and expansion. The harm of the gap of wealth would inevitably conflicts with the nature of socialism, and easy to cause social unrest, even lead to polarization. This paper analyses the reasons of the existence of the gap of wealth from the comparison of the gap of wealth of the inter-industry, inter-regional and between urban and rural areas, and points out the current economic system and economic operation mechanism, labor price gap, industry monopoly, distribution system and the imperfection of existing tax system are the causes of the widening the gap of wealth. To narrow the gap of wealth in our country should strengthen the adjustment of income and to keep residents income gap within a reasonable range, establish and improve the tax system, set up perfect the social security system and establish long-term effective mechanism of worker wage growth.