Rising Income Gap in Shanghai-paper代写

下面为大家整理一篇优秀的paper代写范文- Rising Income Gap in Shanghai，供大家参考学习，这篇论文讨论了上海人民收入差距。贫富差距主要是因为社会的每个成员都处在不同的地位和环境，所以收入有很大的差异，这也造成了财产之间的差距。而上海人民收入差距主要体现在城乡收入的差距、不同行业之间的收入差距和房价差距。而想要从根本上解决上海的收入差距问题，就必须要经过很长时间的努力才行。

The gap between rich and poor is mainly because each member of the society is in different social political, economic and cultural aspects of the position and the environment, resulting in the gap between the actual possessions of social wealth. The income gap is characterized by a certain amount material wealth and spiritual wealth.

Problem Statement

China’s current system of income distribution is an important part of the socialist system. Income is directly related to people’s life and income gap is also connected to people’s happiness. For Shanghai, it is the most advanced city in China and its prices of commodities and house properties are also in a leading place. However, rising income gap is a troublesome problem in Shanghai. A large number of people couldn’t afford the high prices and could only make ends meet.

This essay is aimed to reveal the facts of income gap problem in Shanghai and propose some suggestions, which contains three parts. Firstly, it demonstrates the current income situation of Shanghai residents. Secondly, it explores the cause behind the income gap and the main reason for slow revenue growth and improvement program. Thirdly, it discusses our current distribution system problems and proposes solutions to the problem of income gap.

Current Income Situation in Shanghai

In China, the current gap between rich and poor lies between urban and rural residents, among different regions, industries and social members. From the aspects of Gini coefficient, the income gap between urban and rural areas, regional income gap and industry income gap, income gap problem between rich and poor in China is very obvious. 10% of the richest in China accounts for about 45% of the total social wealth, with 1% of the richest population occupying 35% of the total social wealth. 10% of the poverty population accounts for only 1.4% of the total social wealth. The wealth gap between the richest and poorest people is 31 times.

The Gini coefficient is an important international analysis indicators used to comprehensively study internal distribution of income difference among residents. Normally, if the Gini coefficient is under 0.2, residents’ income distribution is in an average level. If the Gini coefficient is between 0.2 and 0.3, it is relative average. If the Gini coefficient is between 0.3 and 0.4, it is relatively reasonable. 0.4 is widely recognized as a warning line of income distribution gap between the rich and the poor. If the Gini coefficient is between 0.4 and 0.6 it means the gap is large. If the Gini coefficient is above 0.6, it is absolutely not average.

First and foremost, the urban and rural income gap is large. According to the National Bureau of Statistics, in 2014, Shanghai urban residents’ disposable annual income is 47,710 yuan, ranked first in the country; in the first half year of 2015, Shanghai urban residents’ disposable annual income is 26,644 yuan and rural residents’ disposable annual income is 13,346. (Website of National Bureau of Statistics, 2015) According to the data, it can be inferred that the gap is almost twice, which demonstrates the unbalanced development and unequal revenue distribution situation in Shanghai.

Secondly, the revenue gap among different industries is relative large. Income growth comes mainly from the coastal city projects and traditional industry leading advantage. The emerging industry is one of the reasons why Shanghai is always in a leading place in China for so many years. The emerging industries like dog training and psychological consultation whose income is very high. The emerging industry will bring new economic growth point to Shanghai. Furthermore, the revenue in different industries has a wide gap. As the financial and economic center in Asia, the income of financial and economic industries in Shanghai is much larger than that of the manufacturing and service industries.

Thirdly, the housing price and conditions represent the income gap problem. Housing is an important part of building a harmonious society in Shanghai and China. From the liberation to the beginning of reform and opening up, Shanghai citizens’ overall living conditions improving slowly. After the reform and opening to the outside world, through the corresponding land system reform, financial system reform and housing system reform, Shanghai gradually established a market-oriented mechanism of housing supply. Under the function of market mechanism, Shanghai's housing level has improved significantly. But behind the overall living conditions improving, some new problems are showing up. Residents’ housing supply has changed from government welfare housing distribution to t the market supply, going from one extreme to another extreme. As a result, the improvement of living condition excessively depends on the level of income. The housing problems of middle and low income families are becoming increasingly prominent. With the increase of the social gap between rich and poor increase, the problem urban social space differentiation and residential segregation phenomenon is becoming serious.

One of the indexes of housing problems in Shanghai is the pricing of the property. In recent year, the housing price in Shanghai has surged to a high level. In the downtown of Shanghai, the pricing is up to over 100 thousand per square meter. Meanwhile, in the rural area, the pricing is also up to more than 20 thousand per square meter. For those with high income, they can buy these commercial housing and change their living standard. However, for those with low income, they can only squeeze in the old housing and the living room and conditions are unsound.

Cause of the Rising Income Gap

In the first place, the cause of the rising income gap lies in the unbalanced economic development. In the late 1970s, under the leadership of Deng Xiaoping, China implemented the guidance of reform and opening up. This reform is a comprehensive reform and the covering areas include political, economic, cultural, social and other aspects. Looking back the past 30 years, China has surprised the world, with a more civilized society, more democratic politics. More importantly, China’s economy has also developed by leaps and bounds and made brilliant achievements. China's economy is in rapid development, which is indisputable fact. But under the high speed development, many social problems are inevitable, such as housing, employment, social security problems, conflict event and the gap between rich and poor.

For Shanghai, development of the economy lies in some economic and financial sectors and companies. For staff in these companies, their income is much higher than staff in other industries. It is understood that China's Gini coefficient is above 0.4. In recent years although Gini coefficient has been down slightly compared with previous years, but it is still more than the internationally recognized warning line. For instance, the average income of financial sector is over 10 thousand yuan but only 5 thousand yuan in manufacturing industry. Before the reform and development, the income gap is not so large. From above analysis, the gap between the rich and the poor in Shanghai has been gradually opened after the reform and opening up. Therefore, to some extent, it can be said that the gap between rich and poor in Shanghai is caused by the reform and opening up and unbalanced industry development.

In the second place, different sectors offer different income level, which leads to the income gap in Shanghai. Shanghai’s middle-income class, whose income range from 8,000 to 15,000 yuan per month accounts for 38%. There still has a tendency that the coverage continues to expand.

"Gini coefficient" in Shanghai can reflect residents' income gap. Since 1999, the "Gini coefficient" in Shanghai has stood in a high level. In 2004, it even reached to 0.89. In recent years also remain at around 0.8. According to the international standard, the Gini coefficient below 0.3 is in the best state, between 0.3 ~ 0.4 normal state, more than 0.4 alerting state, above 0.6 dangerous state. So, Shanghai is in a "dangerous state" for a long time.

Educational and professional background is the key elements of the income gap. In the same enterprise, for example, the income of the leadership is five times of the average workers. For 10% of companies in Shanghai, the data is even more than 10 times. For 68.3% of the city’s total employees, they are in manufacturing, construction, accommodation and catering, wholesale and retail, leasing and business services, residential service and other services. In these industries, the wages is very low. Other industries like supermarket, property management, sanitation and manufacturing industries, quite a number of first-line employees’ monthly income is only at the lowest level. However, in the industries like the financial, securities, tobacco and other industries, income, welfare and insurance are much better than that of the low-income workers.

In the third place, since the development of the economy, inflationary pressures have become another aspect, which makes most of the citizens' income situation worse. With the surge of CPI, the price of food like pork price has more than doubled. In recent years, residents’ income has risen more than 10% every year, but there are still a significant number of people not satisfy their current income situation. Rising prices has swallowed most of the revenue growth, even a "negative" for the growth of income. Under the effect of these factors, a new term "Shanghai Typed Poverty" has turned up, embodied in rising prices making clothes, food expenditure significantly reduce, living and transportation expenses increased, medical care and education increased, the low income family real spending overdraft and families’ ability to resist risk coming down. In fact, inflation itself is in a source of social wealth redistribution process. Unfortunately, our current inflation is undoubtedly widening income gap. Assuming the other commodity prices unchanged for the last ten years, the increase of housing prices has made the inflation rate reach to 200%. It is obviously that the most citizens' income and the growth of the deposit rate are far less than the growth of housing prices. It is inevitable that people’s wealth has been shrunk in this context.

In recent year, Shanghai’s housing prices surge every day. However, the deposit interest rate is decreased. The effects of the two sides have caused a dilemma. The growth of revenue is not in line with the surge of housing price. For those with average income, they can hardly buy houses and only makes ends meet.

Actions to Solve the Problem

The income gap reflects the fact that the income distribution policy couldn't catch up with the pace of economic development, forming a great gap. Suitable policies or systems are imperative for the current situations in Shanghai. To solve this social problem, one alone cannot make difference. Different departments must go through a full range of supporting reform and take comprehensive measures.

Firstly, relative departments must establish a perfect legal system of income distribution, such as "Anti-unfair Competition Law", "Individual Income Tax Law", "Labor Law", and “Enterprise Minimum Wage Regulations. Relevant departments should intensify the publicity of laws and regulations and let every citizen understand their own legitimate rights and interests, and to provide fair and open platform for citizens to safeguard their legitimate rights and interests. And every law enforcement personnel also should seriously study the spirit, to do by law applied to individual leading cadres inside and use their power to prevent collusion misappropriation of state assets. With the greatest efforts to crack down on illegal profits and malicious competition, the market can maintain economic order and refuse to make artificial income gap.

Secondly, the construction of the social security system should be strengthened. At this point, although Shanghai marched at the head of the country, but there remains to be improved, "Shanghai Styled Poverty" mentioned above just reflects this point. For the workers in the minimum wage income and retired workers, the formulation of the lowest income line and the lowest life guarantee line should not only consider the reality of the current society and but also pay attention to change at any time.

Thirdly, powerful tax measures should be used to regulate the income gap. First of all, the tax policy should be further targeted to low-income and rural tilt, tax relief, cancelling the repetition of the same tax in order to increase the income of this group. Secondly, optimizing the tax in formulating of the tax rate can increase the quota differential, use high tax rates on some high profits and monopoly industries, which can reduce the income gap between industries. In addition, appropriate new taxes can also be put into effect, such as inheritance tax and, social security tax. For the purpose of adjusting income distribution, it is advisable to adopt a more progressive tax rate. At the same time, tax collection and administration should be to strengthened, ensuring the policy implementation and results.

The pertinent opinions are based on the current phenomenon. The root reason of the income gap should be the focus of the research and reform. In fact, no matter the disparity of income or the actual negative growth, the root reason of the income gap lies in the fact that distribution system is not perfect. At present in Shanghai, the primary distribution and redistribution should pay attention to the patterns of distribution of efficiency and fairness. And in recent years, demand-pull investment has become a leading economic model. In this mode, the value orientation of the income distribution is conducive to the formation of the capital, so as to provide a steady stream of capital for investment flows. There is a tendency that wealth is collected by investors and used in investment.

In a nutshell, according to the above analysis, distribution policies should be adjusted accordingly. On the current situation, Shanghai will continue to rank the leading place in China and the world. There is a need to increase the proportion of labor income and the subsidies to low-income farmers, reduce the proportion of capital income into the system. Meanwhile, a more scientific and reasonable personal income tax policy is also a feasible solution to the income gap problem in Shanghai.

Conclusion

There will be long journey to fundamentally solve the problem of income gap problem in Shanghai. The ultimate purpose lies in the improvement of people's life quality. In order to avoid the problem evolving into a worse situation, a reform is needed as soon as possible. With the efforts of all sides, the life in Shanghai should become brighter and the future should not only belong to the wealthy people.

Reference

Website of National Bureau of Statistics. (2015). Regional Ranking of 2014 and the first half year of 2015 Residents’ Disposal Income.

YS Shi and YX Wang. (2013). Dynamic Relationship between Population Concentration and Urban-rural Income Gap in Shanghai. Journal of Nantong University

H Quan. (2011). The Income Distribution Effect of Minimum Wage in Shanghai: Evidence and Simulation. Shanghai Journal of Economics

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