Policy Recommendations for Balancing Income Distribution

摘要

Currently,the economic growth of China is mainly driven by investment and net export.The reason behind this is the distortion of our income distribution mechanism.The expansion of income gap and the uncertainty of expectation lead to a high savings rate,while the high savings rate should be balanced by investment and high export.As a matter of fact,the situation of high profit and tow wage in first the distribution induce the fast growth of investment and export.This will definitely bring excess capacity,an adverse selection of industries and affect the sustainable development of economy.To support the above argument,quantitative analysis is made with macro-economy indices.and suggestions to improve economy are provided.