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Why is the gap between the rich and the poor getting wider and wider?

author:Jiunong DX
Why is the gap between the rich and the poor getting wider and wider?

Recently, when reading a book, I became interested in some of the issues mentioned in the book, coupled with the news of "108,000 yuan per capita" announced by the central bank in this era of information explosion, Lu Qiyuan's analysis of the problems encountered in the mainland's social class and economic development at this stage can't help but make people have to face a reality, that is, the gap between the rich and the poor is getting bigger and bigger!

In 2000, Shen Yongyan pointed out such a problem: the gap between the rich and the poor has widened

In 1956, former President Jiang Zemin's partner when he worked at FAW, and the two also formed a personal friendship. Half a century later, the phone call from Zhongnanhai would always ring at Shen Yongyan's residence at night.

Why is the gap between the rich and the poor getting wider and wider?

According to the book "He Changed China: A Biography of Jiang Zemin", one day in October 2000, in a conversation between former President Jiang Zemin and Shen Yongyan, Shen Yongyan briefly summarized what he saw as the main problems of the time: First, the serious problem of corruption. Second, the problem of unemployment is becoming more and more apparent. Third, all kinds of ugly social phenomena. Fourth, the gap between the rich and the poor has widened.

After hearing this, former President Jiang Zemin did not agree with the widening gap between the rich and the poor. "When Deng Xiaoping initially decided to let some people get rich first, we knew that the gap between the rich and the poor would naturally arise – it was inevitable," he said. But our hope is that through the creation of new business enterprises, those who pay out of town will be able to contribute to common prosperity for all by creating better-paying jobs, new products and new services. The function of the government is to take care of those who are still not rich, to make the rich and the poor more balanced through the redistribution of income, and to put an end to illegal profit-making. The system is not perfect, but it does work. ”

Through this dialogue, we can see that as early as 2000, Shen Yongyan observed and discovered such a social phenomenon as the widening gap between the rich and the poor, and the state at that time also noticed this problem, and tried to solve the problem of widening the gap between the rich and the poor by establishing new industrial and commercial enterprises and redistributing income, with the ultimate goal of common prosperity for all people.

The news of "108,000 yuan per capita deposit" announced by the central bank is inconsistent with reality

According to the financial statistics and social financing data released by the People's Bank of China in the first quarter of 2024 on the evening of April 12, RMB loans increased by 9.46 trillion yuan in the first quarter, and the cumulative increase in the scale of social financing was 12.93 trillion yuan. In the first quarter, household deposits increased by 8.56 trillion yuan, and the per capita savings of about 6,114 yuan were calculated based on the country's 1.4 billion people, and by the end of March, the per capita deposits were 108,400 yuan, close to 110,000 yuan.

Why is the gap between the rich and the poor getting wider and wider?

For us ordinary people, don't say that the per capita deposit is 110,000 yuan, let's say that the family deposit is 110,000 yuan, and it is estimated that there are not many people who can reach this amount. It is estimated that it is better in the first and second-tier cities, but for those of us who are in small counties, "our ancestors are innocent" and "three generations are farmers", really, the per capita deposit of 110,000 yuan is unimaginable.

You can calculate the account: to the common family of three, the husband and wife both work, the monthly salary is 3500-4000 yuan, except for the family's food, drink, Lazar, mortgage and car loan, a month, can save 3000 yuan, it is already very good, just this year, can save 36,000 yuan, 12,000 yuan per capita. This is in an ideal state.

For a family of three who only one of the husband and wife is working, and one has no job and needs to take care of the baby at home, and makes money through part-time work, in addition to the basic living expenses, children's education, car loans and housing loans, etc., it is quite thrifty to save 10,000 yuan in a year.

Therefore, the "108,000 deposits per capita" announced by the central bank is obviously different from the perception of the majority of ordinary people, and at the same time, it also shows such a phenomenon - there are still rich people, not nothing, but the number is relatively small; most people in society are actually not rich, they are "poor"!

The mainland's Gini coefficient has risen from 0.6 to more than 0.7 in more than 20 years from 2000 to 2022

The "Gini coefficient" is one of the commonly used indicators to measure the income gap of residents in a country or region. The Gini coefficient is equal to "0" at the maximum and "0" at the minimum. The closer the Gini coefficient is to 0, the more egalitarian the income distribution.

Why is the gap between the rich and the poor getting wider and wider?

According to the "2023 Global Wealth Report" released by Credit Suisse, from 2000 to 2022, the Gini coefficient of the United States has been hovering between 0.8-0.85, Japan's between 0.6-0.65, France and the United Kingdom hovering between 0.65-0.75, and the mainland's Gini coefficient has increased from 0.65 in 2000 to about 0.7 in 2022.

The widening gap between the rich and the poor is a cruel but indisputable fact.

Lu Qiyuan divided the strata in the mainland at this stage - 2 million people highly monopolize the power and wealth of 1.4 billion people

Lu Qiyuan said: The mainland is now in a special period since the founding of the People's Republic of China, and the special thing is that at this stage, high-net-worth people and high-net-worth rights groups overlap, about 2 million people, and this part of the population is highly overlapping with high-net-worth assets and high-net-worth rights. It is a strange phenomenon that an extremely high degree of monopoly has been formed, including a wide variety of rights and almost major wealth. There are more than 200 million civilian intellectuals, of whom more than 100 million are highly educated, and the remaining part are entrepreneurs, civil servants, and ordinary people who bear heavy social responsibilities. The 1.2 billion people are simple, hard-working, and the best people, who are at the bottom of society, and pursue a happy life with simple labor.

Why is the gap between the rich and the poor getting wider and wider?

Why is the gap between rich and poor widening?

This is determined by the specific stage of historical development of the continent. As we all know, it has only been 75 years since the founding of the People's Republic of China in 1949. In the past 75 years, we have gone from being poor and white, not even building a bicycle of our own, to today's 5G communication technology is the world's leading, electric manned vehicles, lithium batteries, solar cells are the world's leaders, and have gone through the road that developed countries in the West have only taken for a hundred years, or even hundreds of years, and even now they have surpassed them in some fields This phenomenon will inevitably lead to all kinds of problems, and the widening gap between the rich and the poor is one of the problems.

Why is the gap between the rich and the poor getting wider and wider?

Caused by an imperfect benefit distribution mechanism. The Constitution of the People's Republic of China clearly states that "the basis of the socialist economic system of the People's Republic of China is the socialist public ownership of the means of production, that is, the ownership of the whole people and the collective ownership of the working masses." Socialist public ownership abolishes the system of exploitation of man, and implements the principle of distribution according to work. In the initial stage of socialism, the state adhered to the basic economic system with public ownership as the mainstay and the common development of economies under various forms of ownership, and the distribution system with distribution according to work as the mainstay and the coexistence of various forms of distribution. "At the same time, in order to promote common prosperity in high-quality development, we have also been improving and perfecting the distribution mechanism, and on the basis of the relatively complete primary distribution and redistribution system, we are exploring and improving the third distribution system.

I believe that we can solve these internal problems quickly!

What do you think about the widening gap between the rich and the poor?