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建立人际资源圈Production of Inequality in Contemporary China—加拿大代写
2017-05-24 来源: 51due教员组 类别: 更多范文
本篇Production of Inequality in Contemporary China—加拿大代写讲了中国以惊人的经济增长震撼世界,但如今中国的不平等现象日益加剧,这可能会影响中国的可持续发展。调查数据表明,今天中国的不平等发展迅速,2010年以前达到很高水平。许多媒体文章还注意到,今天中国的贫富差距越来越穷。本篇加拿大代写由51due论文代写机构整理,供大家参考阅读。
China shocks the world with its startling economic growth, but nowadays there is rising inequality in China which may influence China’s sustainable development. Survey data suggests that today China’s inequality has grown rapidly and reached a very high level around 2010 (Xie and Zhou). Numerous media article also notice the fact that the rich get richer and the poor get poorer in today China (Poestrel; Ruan).
This essay aims at providing a preliminary explanation of the worsening inequality in China. The essay tries to answer the main question why the rich get richer while the poor get poorer in today’s China. The author will discuss it in four aspects, including Gini coefficient index, labor and enterprise, tax rate and government’s reaction.
Gini coefficient index helps us understand the current situation of inequality in China. The Gini coefficient is a measure of statistical dispersion intended to represent the income distribution of a nation’s residents, and is the most commonly used measure of inequality. A coefficient of 0.5 or higher indicates a severe gap between rich and poor. In 2012, the Gini coefficient for family income in China was about 0.55 compared with 0.45 in the U.S, showing that China’s inequality is tremendous. Beside, the gauge in China was 0.30 in 1980, indicating that the rich may be getting richer and the poor may be getting poorer (Xie and Zhou). Relative data suggests that China’s inequality has been a severe problem. This problem may be due to the conditions of labor and enterprise, tax rate and government’s reaction in China.
In terms of conditions of labor and enterprise, the income gap is greatly contributed by unemployment as well as the exploitation in the enterprise. There is a large population in China, and many of them are easily influenced by the unemployment. According to unemployment data, there are 962,000 people left unemployed in today China (“China Unemployment Rate”). However, there are also still many employed workers struggling with a minimum wage around 2020 yuan (312 US dollar) per month (“China Unemployment Rate”). It’s because there are a large number of workers suffering from the exploitation of the factory, known as “sweatshop”. It’s reported that in many Chinese factory workers are badly exposed to bodily harm and depression but at the same time get extremely low income (Barboza). The conditions of labor pose severe threat to the income equality of China. For example, while Terry Guo, the chairman and CEO of Hon Hai Precision, owns a wealth of 6.1 billion US dollar and is ranked the second wealthiest billionaire in Taiwan (“Terry Guo”), his factory workers in Shenzhen and Dongguan suffered from low income and depression, which led to 13 subsequent suicides in factory (Pun and Chan). If the conditions of labor cannot be solved, the rich will continue to grasp the wealth at the price of the sufferings of the low-income workers, which may worsen the situation that the rich get richer and the poor get poorer.
Tax Rate in China also contributes to the inequality in China. In China, the tax on an individual’s income is progressive. An individual’s income is taxed progressively at 3%-45%, the corporate tax rate for domestic and foreign companies is 25%. The tax rate is a bit higher than the worldwide average top corporate income tax rate, 22.6% (“Corporate Income Tax Rates around the World, 2014”). However, the progressive taxation cannot serve as a way of redistributing wealth and supporting public service for the poor. Economists found that progressive tax in China worsen inequality rather than abstract the rich’s money to support the poor. As Thomas Piketty and Nancy Qian observe, China’s taxation is going through the process of “moving from an elite income tax raising less than 1 percent of GDP to a mass income tax raising around 4–5 percent of GDP” (60). They also find that Chinese population subject to income tax has increased from less than 0.1 percent in 1986 to about 20 percent in 2008. Their findings suggest that more and more people have to pay tax while the rich actually pay less in all. Richard Krever and Hui Zhang discuss the redistributing role of China’s progressive taxation. They adjust the Gini coefficient index with the taxation rate and find that China failed to use income tax as a tool of redistribution compared with developed countries. Actually in people’s daily life, it’s also clear that tax fails to support the poor. A more reasonable and universal public health system and education system haven’t been built up with the support of tax, and the poor are largely excluded from the public service which should be supported by tax. Under that circumstance, taxation in China aggravates the inequality between the poor and the rich.
Another factor of rising inequality may be China’s government. In China, the government is not effectively dealing with the social structures. The American society is more like a rhombus, which means that there is a large middle-class and the rich and the poor only consist of a small part in the society. However, the Chinese society is more like a triangle, which means there are a large number of poor people at the bottom of society, but governments’ policies tend to ignore their interests. Besides, things are getting worse. As a famous sociologist Sun Liping in Tsinghua University suggests in two interviews, China are becoming a “fractured society”, which means that the bottom of the triangular society are becoming larger and larger and some of them may even get “dropped out” from the society. The government failed to provide infrastructure and public service to support them, to implement labor law to ensure working class’ rights and to provide welfare for them. Worse still, many officials in governments betray the grassroots’ interest and grasp unjust money from the people at the bottom level, and these officials may deteriorate the inequality because they are one of the top of the triangle and they will try out every way to support the rich with their power. In this situation, the poor get poorer and the rich get richer. Nowadays people hope that the government will be on their side in the future and corruption can be stopped, and people also hope that the government will change to provide more welfare and more reasonable policies for the poor.
In conclusion, China is faced with severe inequality, and under that circumstance the rich get richer and the poor get poorer, as the Gini coefficient index shows. Conditions of labor and enterprise, taxation and government may all contribute to this worsening inequality. Now that China’s economic growth are getting slower, the inequality may become a more thorny problem in the future, and more effective policies should be issued.
Works Cited
"China Unemployment Rate ". Tradingeconomics.com. N.p., 2016. Web. 17 Mar. 2016.
Barboza, David. "In Chinese Factories, Lost Fingers And Low Pay". Nytimes.com. N.p., 2008. Web. 17 Mar. 2016.
Krever, Richard, and Hui Zhang. "China: Progressive Income Taxation and Urban Individual Income Inequality." (2011). Asia-Pacific Tax Bulletin 17.3 (2011): 192-199.
Ngai, Pun, and Jenny Chan. "Global capital, the state, and Chinese workers the Foxconn experience." Modern China 38.4 (2012): 383-410.
Piketty, Thomas, and Nancy Qian. "Income inequality and progressive income taxation in China and India, 1986-2015." American Economic Journal: Applied Economics 1:2 (2009): 53–63.
Postrel, Virginia. "The Rich Get Rich And Poor Get Poorer. Or Do They?". Nytimes.com. N.p., 2002. Web. 17 Mar. 2016.
Ruan, Victoria. "State Of Inequality As China's Rich Get Richer". South China Morning Post. N.p., 2012. Web. 17 Mar. 2016.
Sun Liping. “Duanlie: Zhongguo shehui de xin bianhua” (Fracture: A New Change in Chinese Society). Nanfang zhoumo (Southern Weekend), 16 May 2002, A11.
Sun Liping. “Women zai kaishi miandui yige duanlie de shehui? ”(Are We Beginning to Confront a Fractured Society?), Zhanlue yu guanli, 2 (2002): pp. 9-15.
Xie, Yu, and Xiang Zhou. "Income inequality in today’s China."Proceedings of the National Academy of Sciences 111.19 (2014): 6928-6933.
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China shocks the world with its startling economic growth, but nowadays there is rising inequality in China which may influence China’s sustainable development. Survey data suggests that today China’s inequality has grown rapidly and reached a very high level around 2010 (Xie and Zhou). Numerous media article also notice the fact that the rich get richer and the poor get poorer in today China (Poestrel; Ruan).
This essay aims at providing a preliminary explanation of the worsening inequality in China. The essay tries to answer the main question why the rich get richer while the poor get poorer in today’s China. The author will discuss it in four aspects, including Gini coefficient index, labor and enterprise, tax rate and government’s reaction.
Gini coefficient index helps us understand the current situation of inequality in China. The Gini coefficient is a measure of statistical dispersion intended to represent the income distribution of a nation’s residents, and is the most commonly used measure of inequality. A coefficient of 0.5 or higher indicates a severe gap between rich and poor. In 2012, the Gini coefficient for family income in China was about 0.55 compared with 0.45 in the U.S, showing that China’s inequality is tremendous. Beside, the gauge in China was 0.30 in 1980, indicating that the rich may be getting richer and the poor may be getting poorer (Xie and Zhou). Relative data suggests that China’s inequality has been a severe problem. This problem may be due to the conditions of labor and enterprise, tax rate and government’s reaction in China.
In terms of conditions of labor and enterprise, the income gap is greatly contributed by unemployment as well as the exploitation in the enterprise. There is a large population in China, and many of them are easily influenced by the unemployment. According to unemployment data, there are 962,000 people left unemployed in today China (“China Unemployment Rate”). However, there are also still many employed workers struggling with a minimum wage around 2020 yuan (312 US dollar) per month (“China Unemployment Rate”). It’s because there are a large number of workers suffering from the exploitation of the factory, known as “sweatshop”. It’s reported that in many Chinese factory workers are badly exposed to bodily harm and depression but at the same time get extremely low income (Barboza). The conditions of labor pose severe threat to the income equality of China. For example, while Terry Guo, the chairman and CEO of Hon Hai Precision, owns a wealth of 6.1 billion US dollar and is ranked the second wealthiest billionaire in Taiwan (“Terry Guo”), his factory workers in Shenzhen and Dongguan suffered from low income and depression, which led to 13 subsequent suicides in factory (Pun and Chan). If the conditions of labor cannot be solved, the rich will continue to grasp the wealth at the price of the sufferings of the low-income workers, which may worsen the situation that the rich get richer and the poor get poorer.
Tax Rate in China also contributes to the inequality in China. In China, the tax on an individual’s income is progressive. An individual’s income is taxed progressively at 3%-45%, the corporate tax rate for domestic and foreign companies is 25%. The tax rate is a bit higher than the worldwide average top corporate income tax rate, 22.6% (“Corporate Income Tax Rates around the World, 2014”). However, the progressive taxation cannot serve as a way of redistributing wealth and supporting public service for the poor. Economists found that progressive tax in China worsen inequality rather than abstract the rich’s money to support the poor. As Thomas Piketty and Nancy Qian observe, China’s taxation is going through the process of “moving from an elite income tax raising less than 1 percent of GDP to a mass income tax raising around 4–5 percent of GDP” (60). They also find that Chinese population subject to income tax has increased from less than 0.1 percent in 1986 to about 20 percent in 2008. Their findings suggest that more and more people have to pay tax while the rich actually pay less in all. Richard Krever and Hui Zhang discuss the redistributing role of China’s progressive taxation. They adjust the Gini coefficient index with the taxation rate and find that China failed to use income tax as a tool of redistribution compared with developed countries. Actually in people’s daily life, it’s also clear that tax fails to support the poor. A more reasonable and universal public health system and education system haven’t been built up with the support of tax, and the poor are largely excluded from the public service which should be supported by tax. Under that circumstance, taxation in China aggravates the inequality between the poor and the rich.
Another factor of rising inequality may be China’s government. In China, the government is not effectively dealing with the social structures. The American society is more like a rhombus, which means that there is a large middle-class and the rich and the poor only consist of a small part in the society. However, the Chinese society is more like a triangle, which means there are a large number of poor people at the bottom of society, but governments’ policies tend to ignore their interests. Besides, things are getting worse. As a famous sociologist Sun Liping in Tsinghua University suggests in two interviews, China are becoming a “fractured society”, which means that the bottom of the triangular society are becoming larger and larger and some of them may even get “dropped out” from the society. The government failed to provide infrastructure and public service to support them, to implement labor law to ensure working class’ rights and to provide welfare for them. Worse still, many officials in governments betray the grassroots’ interest and grasp unjust money from the people at the bottom level, and these officials may deteriorate the inequality because they are one of the top of the triangle and they will try out every way to support the rich with their power. In this situation, the poor get poorer and the rich get richer. Nowadays people hope that the government will be on their side in the future and corruption can be stopped, and people also hope that the government will change to provide more welfare and more reasonable policies for the poor.
In conclusion, China is faced with severe inequality, and under that circumstance the rich get richer and the poor get poorer, as the Gini coefficient index shows. Conditions of labor and enterprise, taxation and government may all contribute to this worsening inequality. Now that China’s economic growth are getting slower, the inequality may become a more thorny problem in the future, and more effective policies should be issued.
Works Cited
"China Unemployment Rate ". Tradingeconomics.com. N.p., 2016. Web. 17 Mar. 2016.
Barboza, David. "In Chinese Factories, Lost Fingers And Low Pay". Nytimes.com. N.p., 2008. Web. 17 Mar. 2016.
Krever, Richard, and Hui Zhang. "China: Progressive Income Taxation and Urban Individual Income Inequality." (2011). Asia-Pacific Tax Bulletin 17.3 (2011): 192-199.
Ngai, Pun, and Jenny Chan. "Global capital, the state, and Chinese workers the Foxconn experience." Modern China 38.4 (2012): 383-410.
Piketty, Thomas, and Nancy Qian. "Income inequality and progressive income taxation in China and India, 1986-2015." American Economic Journal: Applied Economics 1:2 (2009): 53–63.
Postrel, Virginia. "The Rich Get Rich And Poor Get Poorer. Or Do They?". Nytimes.com. N.p., 2002. Web. 17 Mar. 2016.
Ruan, Victoria. "State Of Inequality As China's Rich Get Richer". South China Morning Post. N.p., 2012. Web. 17 Mar. 2016.
Sun Liping. “Duanlie: Zhongguo shehui de xin bianhua” (Fracture: A New Change in Chinese Society). Nanfang zhoumo (Southern Weekend), 16 May 2002, A11.
Sun Liping. “Women zai kaishi miandui yige duanlie de shehui? ”(Are We Beginning to Confront a Fractured Society?), Zhanlue yu guanli, 2 (2002): pp. 9-15.
Xie, Yu, and Xiang Zhou. "Income inequality in today’s China."Proceedings of the National Academy of Sciences 111.19 (2014): 6928-6933.
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