Gini Coefficient

Generalalgorithm

HirschmanproposedanindexforjudgingthedegreeofequalityofdistributionbasedontheLorenzcurve.SupposetheareabetweentheactualincomedistributioncurveandtheabsoluteequalitycurveofincomedistributionisA,andtheareaatthebottomrightoftheactualincomedistributioncurveisB.AndthequotientofAdividedby(A+B)indicatesthedegreeofinequality.ThisvalueiscalledtheGinicoefficientorLorenzcoefficient.IfAiszero,theGinicoefficientiszero,whichmeansthattheincomedistributioniscompletelyequal;ifBiszero,thecoefficientis1,andtheincomedistributionisabsolutelyunequal.Themoretheincomedistributiontendstobeequal,thesmallerthearcoftheLorenzcurveandthesmallertheGinicoefficient.Conversely,themoreincomedistributiontendstobeinequality,thegreaterthearcoftheLorenzcurve,thelargertheGinicoefficient.Inaddition,youcanrefertotheParetoIndex(referstoameasureofthedegreeofunevenincomedistribution).

TheGinicoefficienthasanintuitivemathematicalmeaning.Supposetwopeoplearerandomlydrawnfromthetotalpopulation,andtheirincomesareand.Sothericherofthetwohasanincome,andthepooreronehasanincome.Inthelanguageofprobabilitytheory,Mandmaretheorderstatisticsoftheincomeofthesetwoindividualsdrawnatrandom.FromthedefinitionoftheLorentzcurveabove,itcanbededucedthattheGinicoefficientsatisfies

whereisthemathematicalexpectation,and1≥2≥μistheoverallpercapitaincome.TheaboveformulaisconvenienttounderstandthemeaningoftheGinicoefficient.Itissimilartothecoefficientofvariationσ/μ,usedtodescribethedegreeofdispersionofaconstantpositivedistribution,andhasscaleinvariance.Forexample,ifeveryone’sincomeismultipliedby2,theGinicoefficientisconstant.TheLorentzcurvemethodismoreconvenienttocalculatethevalueoftheGinicoefficientfromtheactualsurveystatisticsofincomequintilesanddeciles.

ManydomesticscholarshaveexploredthespecificcalculationmethodofGinicoefficientandproposedmorethantendifferentcalculationformulas.Mr.ZhangJianhuafromtheSchoolofEconomicsandTradeofShanxiAgriculturalUniversityproposedasimpleandeasy-to-useformula:Supposeacertainnumberofpeoplearequeuedindescendingorderofincomeanddividedintongroups.Assumingthatthecumulativeincomeofthepopulationfromthefirsttothei-thgroupaccountsfortheproportionofthetotalincomeoftheentirepopulationasw_i,thentheLorentzcurvepassesthroughthepoint(i/n,w_i).Itisstipulatedthatw₀=0andw_n=1,thenatotalofi=0,1,2,...,nontheLorentzcurveisobtainedasn+1point.SoyoucanusethetrapezoidalruletointegratetheLorentzcurvetofindtheareaB.AndA+B=1/2istheareaof​​arighttriangle.Finally,theGinicoefficient=A/(A+B)=1–2B.Increasingthenumberofgroupsn,orusingSimpson'sintegrationmethodcanmakethecalculationresultmoreaccurate.

Thereisalsoasimpleandeasycalculationmethod,whichistoestimatetheGinicoefficientbasedontheproportionofthemediantotheaverage.Whenusingthismethod,youneedtoassumethattheincomeobeysthelog-normaldistribution,andthencalculatetheGinibasedonandCoefficient

whereerfistheerrorfunction.TheconversiontableofthepercentageofmedianandGinicoefficientisasfollows:

Economicimplications

IncomeGiniCoefficient

Itsspecificmeaningreferstotheproportionoftheincomethatisusedforunevendistributionofallresidents'income.ThemaximumGinicoefficientis"1"andtheminimumisequalto"0".Theformermeansthattheincomedistributionamongresidentsisabsolutelyuneven,thatis,100%oftheincomeisoccupiedbyallpeopleinaunit;whilethelattermeansthattheincomedistributionamongresidentsisabsolutelyeven,thatis,theincomesbetweenpeoplearecompletelyequal,andthereisnoAnydifference.However,thesetwosituationsareonlyabsoluteformsintheory,andgenerallydonotappearinreallife.Therefore,theactualvalueoftheGinicoefficientcanonlybebetween0and1.ThesmallertheGinicoefficient,themoreeventheincomedistribution,andthelargertheGinicoefficient,themoreuneventheincomedistribution.Internationally,0.4isusuallyusedasawarninglineforthegapbetweenrichandpoor.Ifitisgreaterthanthisvalue,itispronetosocialunrest.

WealthGiniCoefficient

InadditiontotheincomeGinicoefficient(IncomeGini),thereisalsoawealthGinicoefficient(WealthGini).TheapproximatealgorithmisthesameastheincomeGinicoefficient.ThedifferenceisthattheincomeGinicoefficientdatacomesfromhouseholdincomestatisticsinacertainarea,andthewealthGinicoefficientdatacomesfromthehouseholdtotalassetsstatisticsinacertainarea.IntheGinicoefficient,thewealthGinicoefficientisoftensignificantlylargerthantheincomeGinicoefficient.Theprincipleiseasytounderstand.Wealthistheaccumulationofincome,soitisoftenmoreextreme.

NotethattheactualvalueofthewealthGinicoefficientcanonlybebetween0-1,butitdoesnotmeanthatthesumofthewealthofanypartofthepersonislessthan100%,becausetherearesometotalhouseholdassetsThisisobvious:thetop80%ofmostEuropeancountriesalreadyhave100%oftheirwealth.IntheUnitedStates,thebottom14%ofincomeisnegative,andthetotalofthebottom36%iszero.

Segmentation

TheUnitedNationsDevelopmentProgramandotherorganizationsstipulate:

• Ifitislessthan0.2,theindexlevelisverylow(highaverage);

• 0.2-0.29meanstheindexlevelislow(average);

• 0.3-0.39meanstheindexlevel(Relativelyreasonable);

• 0.4-0.59meanshighindexlevel(largergap);

• above0.6meansindexlevelVeryhigh(thegapishuge).

TheGiniindexusuallytakes0.4asthe"warningline"oftheincomedistributiongap.Accordingtothegoldensectionlaw,itsaccuratevalueshouldbe0.382.Generally,theGiniindexofdevelopedcountriesisbetween0.24and0.36,whilethatoftheUnitedStatesisrelativelyhighat0.52.TheNationalBureauofStatisticsofChinaannouncedthattheGinicoefficientwas0.474in2012,0.473in2013,0.469in2014,0.462in2015,and0.465in2016.

Chinahasenteredtheranksofincomedisparity,andthedistributionofwealthisveryuneven.However,thisdataiscontroversialandquestionedbymanyindustryscholars.ScholarsYueXimingandLiShizaiwroteinTheWallStreetJournalthatthereporthostedbyGanLiclaimedthatthestatisticalsamplewastoosmallandtherewereproblemswiththeinformationneededforhouseholdincome,sothestatisticalvaluewastoolarge.GanLithenwroteanarticleinTheWallStreetJournalonJanuary24,2013inresponsetothecorrespondingquestions.OnFebruary5,2013,YueXimingandLiShionceagainpublishedanarticleinTheWallStreetJournal,believingthatGanLi’sresponsedidnotanswermostofthequerieswell.TheyrecalculatedtheprojectdatadisclosedbySouthwesternUniversityofFinanceandEconomics,andre-calculated.question.YangYiyong,directoroftheInstituteofSocialDevelopmentoftheNationalDevelopmentandReformCommission,believesthatXicai’sGinicoefficientismoreliketheGinicoefficientofbankfinancialassetsthantheGinicoefficientofincome.Inaddition,thefollow-upsurveyofChinesefamiliesbyPekingUniversityshowedthattheGinicoefficientofChinain2012was0.49.TheChinaSocialScienceResearchCenterofPekingUniversityreleasedthe"ChinaMinshengDevelopmentReport2014".Accordingtothereport,China’spropertyinequalityisrisingrapidly:in1995,theGinicoefficientofChinesepropertywas0.45,in2002itwas0.55,andin2012,theGinicoefficientofnetfamilypropertyinmycountryreached0.73,andthetop1%ofhouseholdsaccountedforthreeFormorethanone-quarteroftheproperty,thebottom25%ofhouseholdsownonlyabout1%ofthetotalproperty.

DatareleasedbytheNationalBureauofStatisticsofChinashowedthattheGinicoefficientin2015was0.462,whichwastheseventhconsecutiveyearofdeclineandthelowestvaluesinceofficialstatisticswereavailable.WiththesmoothimplementationofChina's"13thFive-YearPlan"(2016-2020)guidedbythefivemajordevelopmentconcepts,theGinicoefficientforjudgingthefairnessofincomedistributionisexpectedtofallbelowtheinternationalwarninglineinthenextfiveyears.

Influencingfactors

TheinfluencingfactorsoftheGinicoefficientincludethelevelofeconomicdevelopment,socialandculturaltraditions,politicalandeconomicsystems,etc.Oneoftheimportantfactorsiswhatkindofgoalsthepolicymakershopetoachievewiththeincomedistributionsystem,whethertheyfocusonthestimulusandincentiveeffectofdistributiondifferences,ortheadjustmentandguaranteeroleofthedistributionpolicy.

Inreality,JapanisoneofthecountrieswiththelowestGinicoefficientintheworld.AccordingtoKyodoNewsonOctober11,2013,the2011surveyreportreleasedbytheMinistryofHealth,LabourandWelfareofJapanonFridayshowedthatJapan’sdomesticGinicoefficientwas0.2708,arecordhigh.Accordingtoreports,since1984,Japan'sGinicoefficienthascontinuedtorise.Thesurveyis0.2708,whichisanincreaseof0.0218comparedwiththedatain2008,whichisarecordhigh.TheMinistryofHealth,LabourandWelfarebelievesthattheincreaseinlow-incomeelderlyandsinglehouseholdshasledtoawideningofthegap.ItisreportedthattheGinicoefficientisanimportantanalysisindexusedinternationallytocomprehensivelyexaminetheincomedistributiondifferencesamongresidentsofacountryorregion.TheclosertheGinicoefficientisto1,thelargertheincomedistributiongap.InJapan,theGinicoefficientsurveyisconductedeverythreeyearsorso,andthisisthe16thtime.TheGinicoefficientofJapanisgenerallyaround0.25,andthatofGermanyisaround0.3,whiletheGinicoefficientoftheUnitedStateshasexceededthewarninglineof0.4.TheGinicoefficientofdevelopingcountriesisgenerallyhigh,roughlyaround0.4.AnimportantreasonforthelowGinicoefficientinJapanisthatthegovernmenthasimplementedahighprogressivetaxsystemto"robtherichandhelpthepoor".Thehighestincometaxrateforhigh-incomegroupsreaches75%,whilethegenerallow-incomegroupisonly15%.ThetaxratefortheaveragemiddleclassintheUnitedStatesisroughly15%or25%,andtherichermiddleclassmayhavetopay35%.However,sincethetaxrateapplicabletotheinvestmentincomeofthesuper-richdoesnotexceed15%,whichismuchlowerthanthetaxratepayableonwageincome,thetaxrateapplicabletotheincomeofmanyrichpeopleismuchlowerthanthatoftheaveragemiddleclass.

Japan,whichfocusesontheroleofsalarysecurityinthedesignofthesalarysystem,hasarelativelysmallsalaryincomegap;whileintheUnitedStates,whichfocusesonincentives,thesalaryincomegapisoftendozensorevenhundredsoftimes.Asaresult,theAmericaneconomyandsocietyhavestrongvitalityandinnovation,butthesocialfragmentationandfragmentationareobvious;whileJapanesesocietyisrelativelystable.Evenifamajorcrisissuchas1998occurred,nomajorsocialproblemsoccurred,butSocialvitalityandinnovationarealsoinsufficient.

SignificancetoChina

TheGinicoefficientbeforeChina'sreformandopeningupwas0.16.

In2007,itexceededthewarninglineof0.4andreached0.48.Atthattime,theGinicoefficienthadalreadyexceeded0.5.Duetotheexistenceofhiddenbenefitsforsomegroups,thegapinactualincomeinChinaisevenhigher.Thisshouldarouseahighdegreeofvigilance,otherwiseitwillcauseaseriesofsocialproblems,andthencausesocialunrestandendangerthesocialistpeople'spower.

Evaluationofprosandcons

Pros

BecausetheGinicoefficientgivesaquantitativeboundaryreflectingthedegreeofthedifferencebetweentherichandthepooramongresidents,Itcanobjectivelyandintuitivelyreflectandmonitorthegapbetweentherichandthepooramongtheresidents,forecast,warnandpreventthepolarizationbetweentherichandthepoor.Therefore,ithasbeenwidelyrecognizedandwidelyadoptedbycountriesallovertheworld.

Disadvantages

1. Itdoesnotshowwherethereisunfairdistribution.

2. Internationally,thereisnostandardforsettingtheGinicoefficient.Someissuessuchaswhethertaxesshouldbeexcluded,whetherpublicassistancebeneficiariesshouldbeexcluded,whethernon-localresidents,orWhethertojointhegovernment'swelfareisnotconsistent,andthereisnocriterionforcomparison.

ChinaCoefficient

Thesourceofthedatainthetable:(1)"GiniCoefficientofNationalResidents'PerCapitaDisposableIncomefrom2003to2016"(2)"NewBookHeldbytheChineseSocialScienceResearchCenterofPekingUniversityPressConference"

Coefficientsituation

TheChinaNationalLivelihoodDevelopmentReport2014wasreleasedbytheChineseSocialScienceResearchCenterofPekingUniversity.Accordingtothereport,China’spropertyinequalityisrisingrapidly:in1995,theGinicoefficientofChinesepropertywas0.45,in2002itwas0.55,andin2012,theGinicoefficientofnetfamilypropertyinmycountryreached0.73,andthetop1%ofhouseholdsaccountedforthreeFormorethanone-quarteroftheproperty,thebottom25%ofhouseholdsownonlyabout1%ofthetotalproperty.

In2010,tworesearchersfromXinhuaNewsAgencypointedoutthatChina’sGinicoefficientactuallyexceeded0.5.AccordingtodatareleasedbytheSouthwesternUniversityofFinanceandEconomicsChinaHouseholdFinanceSurveyinBeijingtoday,theGinicoefficientofChinesehouseholdsin2010was0.61,whichwasmuchhigherthantheglobalaverageof0.44.

ThereportdatafromSouthwesternUniversityofFinanceandEconomicsshowsthatin2010,theGinicoefficientofChinesehouseholdswas0.61,theGinicoefficientofurbanhouseholdswas0.56,andtheGinicoefficientofruralhouseholdswas0.60.Intermsofregions,theGinicoefficientineasternChinais0.59,theGinicoefficientincentralChinais0.57,andtheGinicoefficientinwesternChinais0.55.Theinvestigationteambelievesthattheincomegapbetweentheeastern,central,andwesternregionsiscloselyrelatedtothedegreeofmarketeconomydevelopment.

However,thisreporthascausedcontroversy.YueXiming,aprofessorattheSchoolofFinanceofRenminUniversityofChina,andLiShizai,aprofessorattheIncomeDistributionInstituteofBeijingNormalUniversity,wroteintheWallStreetJournalthatthestatisticalsampleistoosmallandhouseholdincomeneedsinformationThereareproblemswiththeaboveandtheimbalanceofthesamplestructure,sothestatisticalresultsaretoolarge.GanLisubsequentlywroteanarticleinTheWallStreetJournalinresponsetorelatedquestions,pointingoutthatweightscanbeusedtoadjusttheimbalanceofthesample.OnFebruary5,2013,YueXimingandLiShionceagainpublishedanarticleinTheWallStreetJournal.TheybelievedthatGanLi’sresponsedidnotanswermostofthequestionswell,andpointedoutthatXicai’ssurveyresultswerelackinginsomestructuresandcouldnotbepassed.Weightcorrectionandotherissues.Atthesametime,theyrecalculatedtheprojectdatadisclosedbySouthwesternUniversityofFinanceandEconomics,andfoundthattheresultsofXicaicouldnotbereplicated,andXicai'sprocessingoftheheadandtaildatawasarbitrary,sotheyquestionedagain.

Furthermore,thePekingUniversityChinaFamilyDynamicsTrackingSurveyshowedthatChina’sGinicoefficientwas0.49in2012.

Itisworthnotingthattheincomegapbetweenpensionsandpensionsisoneoftheimportantreasonsfortheincomegapbetweenurbanandruralresidents,accountingfor25.3%oftheincomegapbetweenurbanandruralhouseholds.DatafromtheChinaFamilyFinanceSurveyshowsthatin2010,about45%offamilymembersretiredwithoutanysocialpensioninsuranceandretirementwages.

2013GiniCoefficient

Xinhuanet,Chengdu,February24.Recently,theChineseHouseholdFinanceSurveyandResearchCenterofSouthwesternUniversityofFinanceThereportwasreleasedontheManagementSummitForum.Thereportpointedoutthatin2013,thetop10%ofChinesehouseholdsowned60.6%ofassets,adecreaseof3.3%comparedwith2011,andtheGinicoefficientdroppedfrom0.761to0.717.

Analysisresults

1.TheincomegapofChineseresidentscontinuestoincrease

TheincomegapofChineseresidentshasincreased,whichisspecificallyusedforstatisticsTheGiniCoefficient,astatisticalindicatorofincomedisparityinacountryorregion,showsthattheincomedisparityofChineseresidentscontinuestogrow.TheGinicoefficientisastatisticalindicatorthatreflectsthelevelofincomedisparityamongresidentsinacountryorregion.Itcanreflectthefairnessofincomedistributioninacountryoraregion.

Second,China’sGiniCoefficient

In1978,China’sGinicoefficientwas0.317.Since1994,ithascrossedthe0.4warningline(exceptin1999).Andtheoveralltrendisincreasingyearbyyear,exceeding0.465in2004.Sincethen,theNationalBureauofStatisticsnolongerpublishesthedomesticGinicoefficient.Sincethen,theGinicoefficientismostlyestimatedbyeconomists.AreportfromtheChineseAcademyofSocialSciencesstatedthatChina'sGinicoefficientreached0.496in2006.In2010,tworesearchersfromXinhuaNewsAgencyevenjudgedthatChina'sGinicoefficientactuallyexceeded0.5.

3.ThesituationofChina’sintereststructure

TherearethreeaspectstodiscusstheissueofChina’sintereststructurefromarelativelylargeperspective:First,thefourthaspectoftheintereststructure.Twoformsandthreevariables;second,theanalysisofthecurrentsituationthatChina’sinterestpatternhasbeendistorted;andthird,thereformstrategytocorrecttheinterestpattern.

1.Thepoliticalmeaningoftheinterestpattern

Firstofall,Iwanttodefinetheinterestpatternitself.Theso-calledinterestpatternreferstotheformofsocialinterestformedunderacertainsocialandinstitutionalenvironmentwitheconomicbenefitsasthemainmanifestation.Theformofsocialinteresthasaprofoundimpactonsocietyandsocialmembers.Whyisitsaidthattheformofsocialinteresthasaprofoundimpactonsocietyanditsmembers?Ifasocietyisafriendlyformofsocialinterest,itisastabilizerforthebenigndevelopmentofsocietyandsocialharmony;ifitisaformofbadsocialinterest,itisalsosocialinstabilityorevensocialinstability.Animportantsourceofturmoil,soithasaprofoundimpactonsocietyanditsmembers.

Inanycountry,theproblemofthepatternofinterestsisnotasimpleeconomicproblem,butapoliticalproblemmanifestedbyeconomicproblems.Thereareatleastthreereasons:First,economicissuesareoftenintertwinedwithpoliticalissues,anditisdifficulttofindthattheinterestpatternisalleconomicissues.Iftheinterestpatternisdistortedorbenign,itisallrelatedtopoliticalfactors;second,evenifitispoliticalIntheend,allstrugglesarerelatedtoeconomicbenefits;thethirdisthatpoliticalfactorsaremoredominantanddecisiveinsolvingeconomicbenefits.Fromthesethreeperspectives,Ithinkthatstudyingtheissueofthepatternofinterestsisnotjustaneconomicissue,butapoliticalissue.

2.Threevariablesthataffectthepatternofinterests.

Therearethreemainelementsthatdeterminethebasicformoftheinterestpattern.Thefirstistherationalityoftheincomedistributionsystem;thesecondisthefairnessandjusticeofpublicpolicies;thethirdistheeffectivenessofpublicpowerconstraints.Thesethreefactorsdeterminewhetherasocietyisabenigninterestpatternoraviciousinterestpattern.Anychangeinanyofthesethreevariableswillhaveaprofoundimpactonotherfactors.

3.Itistheinternalrelationshipbetweenthesethreevariablesandfourdifferentpatternsofinterests.

Thechangeofeachofthesethreevariableswillhaveanimpactontheentirestructure.Thegrowthanddeclineofthethreevariablesmayresultinfourdifferentpatternsofinterests.Thefirst:abenignandharmonioussocialinterestpattern,theincomedistributionsystemitselfisrelativelyreasonable,thegovernment'spublicpoliciescanreflectfairnessandjustice,andtheexerciseofpublicpowercanbeeffectivelycontrolledandrestricted.Thesethreevariablesarewithintherangeofreasonablefactors,andasawhole,abenignandharmonioussocialinterestpatternwillbepresented.IgenerallywanttofindacorrespondingrelationshipwiththeGinicoefficient.Ofcourse,thiscorrespondencemaynotbeaccurate.Itisentirelymypersonalthinking.IthinkthatwhentheGinicoefficientisbetween0.2and0.3,itbelongstoabenignandharmonioussocialinterestpattern.Thesecondtype:thepatternofmildsocialinterestsisdistorted.Therearesomeobviousunreasonablefactorsintheincomedistributionsystemitself,whichmaycauseaslightdistortionofthesocialinterestpattern,butthefairnessandimpartialityofgovernmentpoliciesdoesnotcausemajorproblems,andtheoperationofpublicpowercanbecontrolledandrestricted.ThelattertwoThevariablesarehealthy.Achangeinthefirstvariablemaycauseaslightdistortionoftheprofitpattern.IthinkthecorrespondingGinicoefficientisroughly0.3-0.4.Atthistime,itwasmainlythoughtthatthereformandadjustmentoftheunreasonablesystemitself.Thethirdtype:thepatternofmoderateinterestsisdistorted.Theincomedistributionsystemisunreasonable,andthereisaproblemwiththefairnessandjusticeofgovernmentpublicpolicies,butthesituationofpublicpowercangenerallybeeffectivelycontrolledandrestricted.Atthistime,thecorrespondingGinicoefficientisroughlybetween0.4and0.5.Atthistime,thekeyreformsareunreasonable.Thedistributionsystemandguaranteethefairnessandjusticeofpublicpolicies.Fourth:Thepatternofsocialinterestsisseverelydistorted,allthreevariableshaveproblems,theincomedistributionsystemisunreasonable,thefairnessandjusticeofthegovernment'spublicpoliciesareproblematic,andthesituationofpublicpowercannotbeeffectivelycontrolledandrestricted.ThecorrespondingGinicoefficientAbove0.5,ifatthisstage,theintereststructureisseverelydistorted,anall-roundreformofthethreeelementsmustbecarriedout.

Four.AnalysisofthecurrentsituationofChina’sdistortedintereststructure

1.Analysisoftheunreasonabletrendoftheincomedistributionsystem.Thegoalofgettingrichfirsthasbeenachieved,andthegoalofcommonprosperityhasfailed.Thefourmajorgapshavebeenenlargedinthereformanddevelopment,andthegapsbetweentherichandthepoor,urbanandruralareas,industries,andregionsareallbeingenlarged.Intheearly1990s,intheprimarydistribution,laborcompensationaccountedfor53.4%​​ofGDP.By2008,itfellto39.4%.Intheprimarydistribution,laborcompensationwassqueezedtoaverysmallspace.Theexpenditureonpeople’slivelihoodinthesecondarydistributionstillaccountsforarelativelylowproportionofthetotalfiscalexpenditure.Indevelopedcountries,itaccountsfor56%to70%ofthefourmajorexpenditures.However,Chinahascontinuouslyincreaseditsinvestmentinpeople’slivelihoodovertheyears,accountingforonly28.8in2009.%.

2.Thefairnessandjusticeofthegovernment’spublicpolicieshasproblemsinsomeaspects,manifestedinthreeaspects.Oneisthatenterprisesandenterprisesarenotonthestartinglineofthesamecompetition.Thereisnolevelplayingfieldwithenterprises;second,thereareseriousinequalitiesineducation,medicalcare,andsocialsecurityinthesociety,andthisgroupandthatgroupareinanunequalposition;thirdisthedevelopmentopportunitiesformembersofsocietyInequalityandunfairnessareveryserious.WhenaruralchildcannotfindadecentjobevenafterpassingTsinghuaUniversityandPekingUniversity,thesocietyisincrisis.

3.Thepowerofrestraintandbalanceofpublicpowerlacksaneffectivesystemguarantee.Manyofourconstraintsonpublicpowerhavenotformedaninstitutionalframework.Infact,Chinahasformedthreevestedinterestgroups.Graypower,graycapital,andgrayprofiteeringareflooding,andhugegrayprofiteeringcanbeobtainedovernighttobecomearichman..Thereisaproblemwiththesethreevariables.TheGinicoefficientisprobablyabove0.6.China'sGinicoefficientsometimesexceeds0.65.ItisaconsensusthatthegapbetweentherichandthepoorinChinahaswidenedseverely.

Fifth,reformstrategytocorrecttheinterestpattern

Facedwithsuchaseverelydistortedinterestpattern,correctingtheinterestpatternrequiresathree-prongedapproach.Itistointroduceanincomedistributionsystemreformplanassoonaspossible,increasetheproportionoflaborremunerationintheprimarydistribution,andincreasetheproportionofhouseholdconsumptioninnationalconsumption;inthesecondarydistribution,itisnecessarytofurtherincreaseinvestmentinpeople'slivelihoodandincreasetheproportionofpeople'slivelihoodexpenditureinfiscalexpenditure..Thesecondistoadjustgovernmentpublicpoliciestoensurefairnessandjustice,reformthemonopolystatusofstate-ownedenterprises,provideaninstitutionalenvironmentforfaircompetitionfordifferenttypesofenterprises,andbedeterminedtoresolveinstitutionalunfairnessinthefieldsofmedicalcare,education,andsocialsecurity.Factorsthatmakeitgraduallymovetowardsfairnessandjustice,andarelativelyfairdevelopmentenvironmentmustbeprovidedformembersofsociety.Thethirdistostrengthentherestraintandsupervisionofpublicpower,curbthespreadofthe"threeash"phenomenon,andbuildaneffectiveframeworkforrestrictingpublicpowerthroughanti-corruption.Strictlyrestrictpartyandgovernmentofficials'involvementincommercialactivities,andstrictlyrestrictpartyandgovernmentofficials'spousesandchildren'sparticipationincommercialactivities.Abolishtheactualadministrativelevelsofallstate-ownedenterprises,re-examinethecurrentleadershipsystemandmanagementmethodsofChina'sstate-ownedenterprises,implementmarketizationforallstate-ownedenterprises'managersandoperators,andabolishthegovernment-business-take-allsystem.Implementfreemedicalcareforthewholepeopletoensurethehealthofthewholepeople.

ItwillbeanimportanttaskforChinatoalleviateorsolvetheincomegapduringthe6thand12thFive-YearPlanperiod

Theeconomicconstructionofthe12thFive-YearPlanwillbefullylaunched.ItwillbeanimportanttaskforChinatoresolvethegapbetweentherichandthepoorandnarrowtheincomegapinChina.

WorldCoefficient

In2009,theWorldBankreleasedadatareportshowingthattheaverageincomeofthehighestincome20%ofthepopulationandthelowestincome20%ofthepopulation,thesetwoThenumberratiois10.7timesinChina,8.4timesintheUnitedStates,4.5timesinRussia,4.9timesinIndia,andthelowestinJapan,whichisonly3.4times.

TheplacewiththehighestGinicoefficientintheworldisNamibiainAfrica,andtheGinicoefficientsofMainlandChinaandHongKong,ChinainAsiabothexceed0.4.After2001,HongKong,Chinaevenreached0.525,andin2006itevenreached0.533.Amongthedevelopedcountriesandregions,theregionswiththemostseriousdisparitybetweentherichandthepoor;evenifthedevelopingcountriesareincluded,HongKong,China,ranksamongthehighestintheworld’smostseriousdisparity,secondonlytoElSalvador,Colombia,Honduras,Chile,Guatemala,Panama,Brazil,Zimbabwe,SouthAfrica,Paraguay,Bolivia,Haiti,CentralAfricanRepublic,SierraLeone,Botswana,Lesotho,Namibiaranked18thfromthebottom.

Beyondthewarningline

Internationally,economistsusuallyusetheGiniindextoshowthewealthdistributionofacountryandregion.Thisindexisbetweenzeroandone.Thelowerthevalue,themoreeventhedistributionofwealthamongmembersofsociety,andviceversa.

AccordingtotheregulationsoftherelevantUnitedNationsorganizations:iftheGinicoefficientislowerthan0.2,itmeanstheabsoluteaverageincome;0.2-0.3meansrelativelyaverage;0.3-0.4meansrelativelyreasonable;0.4-0.5meanslargeincomegap;0.5ormoremeansTheincomegapishuge.

Internationally,0.4isusuallyregardedasthe"warningline"oftheincomedistributiongap.Generally,theGiniindexofdevelopedcountriesisbetween0.24and0.36,whilethatoftheUnitedStatesisrelativelyhigh,at0.4.BoththeGinicoefficientofMainlandChinaandHongKongexceeded0.4.In2007,China'sGinicoefficientreached0.415,whichhasexceededthe0.4warningline.

QuotedfromanarticlebyXinhuaNewsAgencyandChinaEconomicNetonMay10,2010:

TheDirectoroftheLaborandWageResearchInstituteoftheMinistryofHumanResourcesandSocialSecurity,andtheProfessionalCommitteeoftheChineseSocietyofLaborChangSuHainanbelievesthatChina'sincomegapisshowingatrendofwideningandmulti-levelexpansion.Atpresent,theincomeratioofurbanandruralresidentsinChinahasreached3.3times,thehighestintheworldisabout2times;thewagegapbetweenworkersisalsoveryobviousbetweenindustries,thedifferencebetweenthehighestandthelowestisabout15times;theincomegapbetweendifferentgroupsisalsorapidlywidening.Theincomegapbetweentheexecutivesoflistedstate-ownedenterprisesandthefront-lineemployeesisabout18times,andthegapbetweentheaveragesalaryofstate-ownedenterpriseexecutivesandthesocietyis128times.

LiShi,directoroftheIncomeDistributionandPovertyResearchCenterofBeijingNormalUniversity,hasparticipatedin4large-scaleresidents’incomesurveyssincethe1980s.Hesaidthattheincomegapbetweenthetop10%andthebottom10%hasincreasedfrom7.3timesin1988to23timesin2007.Xinhuanet,Chengdu,February24.Recently,theSouthwesternUniversityofFinanceandEconomicsChinaHouseholdFinanceSurveyandResearchCenterreleasedareportatthe"2014ChinaWealthManagementSummitForum".Thereportpointedoutthatin2013,thetop10%ofChinesehouseholdsowned60.6%ofassets,adecreaseof3.3%comparedwith2011,andtheGinicoefficientdroppedfrom0.761to0.717.

Expertopinion

Changethesystemshortcomingsofthecurrenttaxsysteminregulatingincomedistribution,improvethetaxregulationsystem,andmakethefunctionoftaxregulationanddistributioninresidents’income,stockassets,investmentincome,etc.Thelinkhasbeeneffectivelybroughtintoplay.

Inresponsetothesingle,missing,andweakenedtaxregulationinChina,amulti-tax,three-dimensional,andfull-processtaxregulationsystemhasbeenestablished.Itisnecessarytoimprovetaxationpoliciesandgraduallyestablishacomprehensivecoordinationandcooperationthatcoverstheentireprocessofresidents'incomeoperations,withpersonalincometaxasthemainbody,propertytaxandsocialsecuritytaxasthetwowings,andothertaxesassupplementaryincomedistributiontaxcontrolsystem,usingcomprehensivecontrolMeanstostrengthenthetaxregulationofthehigh-incomeclass.

Thefirstistospeedupthereformofpersonalincometaxandestablishataxsystemthatcombinescomprehensiveandclassifiedtaxation.

Thesecondistodeepenthereformoftheconsumptiontaxsystem.Givefullplaytothetaxredistributionfunctionofconsumptiontaxproducts,applylowtaxratesortaxexemptionstonecessities,andapplyhightaxratestoluxurygoods.

Thirdly,itispossibletoconsideradoptingaprogressivetaxrateforthepersonalincometaxleviedoninterestonsavingsdeposits,aswellaslevyingtaxessuchaspropertytaxandinheritancetax.

Put"therichpeoplefirst"asanewstageofeconomicdevelopmentandamajoreconomicpolicytosolvetheproblemofincreasingtheGinicoefficient,andimplementactivetaxsupportpoliciesforlow-incomeearners.

Thefirstistoimprovetaxationpoliciesandmeasurestosupportagriculturaldevelopment.Thebasicstatusofagricultureandthecharacteristicsoflow-qualityindustriesrequirethegovernmenttofurtherincreasethelevelofspecializationandscaleofagriculturalproduction,vigorouslydevelopagriculturalindustrialclusters,andimprovethemodernagriculturalproductmarketsystemaftertheabolitionofagriculturaltaxes.Amorefavorablevalue-addedtaxrateisadoptedforagriculturalproductionmaterialstolowerthepriceofproductionmaterialsandreducetheburdenonfarmers.

Thesecondistoincreasesupportforsmallandmedium-sizedenterprises,sothattheprivateeconomyhasachievedrapiddevelopment.TheimportantroleplayedbyChineseSMEsinsolvingsocialemploymentandmaintainingsocialstabilityisobvious.

Thethirdistoincreasetaxsupportforthereemploymentoflaid-offandunemployedpeopleincitiesandtownstopromoteemploymentandreemployment.

Fourth,itisrecommendedtolevysocialsecuritytaxes.

Improvesupportingmeasuresandincreasethesupervisionoftheincomeofabnormalhigh-incomegroups.Thehigh-incomeclassismainlyentrepreneurs,filmandtelevisionstars,monopolyindustrypractitioners,governmentofficials"rent-seeking"grayincomeearners,andillegalundergroundeconomicupstarts.Establishinganeffectivepersonalincomemonitoringmechanismandmonitoringpersonalincometaxsourcesisaveryimportantbasicwork.

Thefirstistostrengthenthesupervisionofmonopolyincome.

Thesecondistoactivelyimplementthereal-namesystemfordeposits,andgraduallycreateconditionstoimplementthereal-namesystemforfinancialassetstolimitillegalincome.

Thethirdistotakeeffectivemeasurestocrackdownonblackincome,corruptincome,grayincome,andabnormalincomederivedfromvariouspolicyloopholes.

Ofcourse,theroleoftaxationinsolvingthedisparitybetweentherichandthepoorandresolvingthe"surpassingpolice"oftheGinicoefficientis,afterall,limited.ItmustworktogetherwithothergovernmentmacroeconomicpoliciestobettersolveChinaTheproblemofwideningincomedistributiongap,therebypromotingthehealthyandharmoniousdevelopmentofChina'seconomyandsociety.

GlobalGiniCoefficient

Grassgreen:lessthan0.25

Pinkgreen:0.25–0.29

Lightgreen:0.30–0.34

Skyblue:0.35–0.39

Cobaltblue:0.40–0.44

Purple:0.45–0.49

Magenta:0.50–0.54

Orange:0.55–0.59

Vermilion:notlessthan0.60

Gray:Nodata

CountriesareusedasthedivisionunitTheGinicoefficientsectionofthegraph,theclosertothepurple,themoreuneventheincome.Theclosertoblue-green,themoreeventheincome.

Content

Accordingtothedivisionofregions,theGinicoefficientoftheeasternregionis0.59,theGinicoefficientofthecentralregionis0.57,andtheGinicoefficientofthewesternregionis0.55.Itcanbeseenthattheincomegapbetweentheeastern,centralandwesternregionsiscloselyrelatedtothedegreeofmarketeconomydevelopment.

"Fromtheperspectiveoftheeconomicdevelopmentofvariouscountries,thehighGinicoefficientisacommonphenomenonintheprocessofrapideconomicdevelopmentandanaturalresultoftheeffectiveallocationofresourcesbythemarket.WesterndevelopedcountriesdidnotcarryoutsecondarydistributionwhenTheGinicoefficientisalsoveryhigh.Forexample,atthetime,Italywas0.53,theUnitedStateswas0.49,andGermanywas0.5.Afterwesterndevelopedcountriesimplementedredistribution,theGinicoefficientwasabout0.3.Buttheprobleminourcountryisthatthereisbasicallynosecondarydistribution."GanLisaid.