Teaching Comparative Government and Politics

Tuesday, July 06, 2010

Income redistribution for economic growth

Marxism advocated economic equality as a human right. Socialism with Chinese characteristics appears to advocate economic equality as a tool of economic growth and promoting a harmonious society.

China plans income distribution reform

The global economic crisis has compelled China to adjust its industrial structure and hasten the pace of economic reform.

Top leaders have recently called for further adjustment of the national income distribution, to expand domestic spending and promote social harmony…

The China Democratic League, one of the eight non-Communist Parties, carried out a comprehensive study of income distribution in May. Zheng Gongcheng is one of the principals.

He says China urgently needs a wealth distribution revolution, based on giving priority to efficiency…

Zheng Gongcheng says China has to shift the focus of its economic growth engine from exports to domestic demand. And a system of "multiple distribution methods" should be established.

Zheng Gongcheng said, "The reform does not simply mean wealth redistribution and raising labor income. It relates to people's livelihood and social equality, transforming the economic structure to maintain a healthy development, and creating a comprehensive welfare system."

At present, the Chinese government is putting more emphasis on narrowing the income gap to defuse public complaints.

Premier Wen Jiabao has vowed to enhance a rational income distribution system, as it is an important manifestation of social fairness.

Professor Cai Hongbin says the reform is not only to distribute the “pie of social wealth” well, but also to make the pie bigger so everyone can benefit…

Whatever the means of reform, they all include raising wages. Putting money in workers' pockets will help accelerate China's growth.