The excessive income distribution gap’s impact on our society and economy

Cui+Meng+He+Jia-huan+Zhang+Ge

A 【Abstract】Ever since reform and opening-up， China has achieved a great success in terms of economic efficiency and the distribution pattern of revenue has undergone major changes. However，with the rapid economic development，the income gap among people is expanding. Excessive income distribution gap can intensify social conflicts， trigger social instability and endanger sustainable economic development.

【Key words】income distribution gap； impact

【中圖分類號】G64 【文獻標識碼】A 【文章編號】2095-3089（2016）23-0012-01

With the expansion of the income distribution gap in our country， its negative effects appeared gradually， and it has become barrier for the coordinated economy， social sustainable development and society's comprehensive construction.The negative effects can be seen mainly in the following aspects.

First， excessive income distribution gap hurts the labor enthusiasm of the people who have low income. If the income distribution gap is too large， the social members who participate in economic activities will have a sense of social instability. Also， the income distribution gap， especially the existence of absolute poverty， is easy to cause imbalance in the structure of society and even deformity development， and it may intensify social class contradictions and affect social stability.

Second， huge income distribution gap does harm to economic sustainable development. On the one hand， the gap will have a negative impact on consumption. On the other hand， it will have an adverse impact on production.The situation in our country is overproduction. First， overproduction makes many small and medium-sized enterprises who have weaker capacity cut their production down or shut down. Then the income of the stakeholders decrease，in turn， it affects the confidence of the investors， and makes the total investment decrease， finally it will affect the economic growth. Second， the lack of confidence of the investors and less total amount of investment will affect social employment. However， the employment is vital to improve people's livelihood and the income level of the low-income groups. Again， as the companies lack confidence， this affects the healthy development of economy， and to a certain extent，it then determines the size of national fiscal revenue.As the country's fiscal revenue growth slows down， the ability of a nation to transfer payment is hurt. So， that further expands the income distribution gap and even forms a vicious circle.

Based on the above analysis， in order to improve the status quo of inequality of income distribution and narrow the income gap among citizens， the government should further improve the market economic system. Only by doing so can a more harmonious economic market environment be established soon.

References：

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[2]郭立業，梁向東.和諧社會條件下的收入分配價值觀[J].求索，2009（10）.

[3]宋桂霞.中國和諧社會收入分配制度構建研究[J].大慶師范學院學報，2009（1）.