Cheng Enfu: Grasp and apply the five distribution methods to promote common prosperity

Cheng Enfu: Grasp and apply the five distribution methods to promote common prosperity

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To promote common prosperity in a down-to-earth manner, it is necessary to give full play to the function and role of distribution in a comprehensive and systematic manner. In the mainland's current national income distribution system, the basic distribution methods in a broad sense mainly include: the distribution mode of "labor and multiple auxiliaries" that plays a decisive role, the "state legal policy" mode that plays an auxiliary role, the "price change" mode that plays a regulating role, the "capital market" mode that plays the role of expansion and contraction, and the "donation to the poor" mode that plays a role in micro-supplementation. The connotation of these five distribution methods includes what is commonly referred to as "three distributions", but it is more complete and objective. In the new journey of building a modern socialist country in an all-round way, we should understand and elaborate on various forms of distribution in an all-round way in the spirit of theoretical innovation of political economy, and promote common prosperity in a down-to-earth manner. General Secretary Xi Jinping pointed out that to solidly promote common prosperity, "we must give full play to the function and role of distribution". In the mainland's current national income distribution system, there are five main types of basic distribution methods in a broad sense (usually the distribution principle is also a distribution mode): the decisive distribution mode of "labor owners and multiple auxiliaries" (distribution according to work as the main body, with multiple distribution modes coexisting), the "state legal policy" mode that plays an auxiliary role, the "price change" mode that plays a regulating role, the "capital market" mode that plays the role of expansion and contraction, and the "donation to the poor" mode that plays a role in micro-supplementation. The connotation of these five distribution methods includes what is commonly referred to as "three distributions", but it is more complete and objective. Among them, except for the "national legal policy", which is purely a state regulation and distribution method, the other four distribution methods mainly belong to market behavior and market regulation, but also include the behavior of government participation and governance to varying degrees. This kind of government regulation is a means of government regulation, and generally belongs to the distribution mode in the national income distribution system in which the government participates. Therefore, in order to give full play to the function and role of distribution in promoting common prosperity in a comprehensive and systematic way, it is necessary to systematically explain the internal mechanism of the five distribution modes and explore the practical essence of using the five distribution modes to promote common prosperity. General Secretary Xi Jinping stressed that the distribution system with distribution according to work as the main body and the coexistence of multiple distribution methods "is conducive to mobilizing the enthusiasm of all parties and achieving the organic unity of efficiency and fairness". From the point of view of the level of national income distribution, in the "first distribution" system carried out by enterprises, distribution according to work is the main distribution method supplemented by a variety of distribution methods (referred to as "labor owners and multiple auxiliaries") is the basic distribution mode at the internal level of production and business operation units in the mainland at the present stage, which plays a decisive role in the national income distribution system. Among them, the dominant distribution system is in the position of the main way in the solid promotion of common prosperity. (1) The role of distribution according to work in promoting common prosperity in the primary stage of socialism in the mainland, the dominant position of the distribution system according to work in the field of distribution is of direct and decisive significance for the solid promotion of common prosperity. First of all, the principle of distribution according to work is to eliminate the distribution mechanism of getting rich without work and directly promoting labor to get rich, so as to directly promote common prosperity. Under the condition that the state regulates economic and social development in a timely and scientific manner, prosperity through labor is mainly achieved through the implementation of the principle of distribution according to work in the public economic units. Marx proposed: "In a collective, communal ownership of the means of production...... Every producer, after making various deductions, receives from society exactly what he gives to society. What he gives to society is the amount of his personal labour", and "the amount of deduction shall be determined in the light of the available materials and forces, and partly on the basis of the calculation of probability". In the distribution of various types of public ownership economy in the mainland at the present stage, after making all necessary deductions, the principle of distribution according to work takes the actual labor contribution of each laborer in production (that is, the quantity and quality of labor) as the basic basis for the distribution of labor products, thus eliminating the exploitative nature of the distribution of labor products, thus directly embodying the equal relationship between laborers at the level of primary distribution. Therefore, the principle of distribution according to work can not only eliminate egalitarianism and fully promote labor to get rich, but also effectively prevent the differentiation between the rich and the poor caused by the difference in the possession of the means of production, so as to lay a solid foundation for the distribution system to promote common prosperity. Second, the dominant position of the principle of distribution according to work can play a radiating and guiding role in the distribution of the non-public economy by promoting labor to get rich and narrowing the income gap. Marx pointed out that "any kind of distribution of the means of consumption is nothing but the result of the distribution of the conditions of production themselves". At the present stage, private enterprises and foreign-funded enterprises on the mainland account for a relatively large proportion of property rights, and distribution according to capital is the main form of distribution in these non-public economies. Under the principle of capital distribution, the owners of private capital occupy a considerable share of the primary distribution within the production and business operation unit according to the amount of capital contributed or the surplus value obtained by investing in shares, and the share of laborers' remuneration is relatively small, so that it is mainly conducive to the enrichment of capital rather than the enrichment of labor. However, the dominant position of the principle of distribution according to work can, to a certain extent, correct and adjust the tendency of the gap between the rich and the poor caused by the principle of distribution of private capital. The basic facts and logic are as follows: First, in the entire national economy, the principle of distribution according to work, which is in the dominant position, can play an exemplary role and provide standards and references for legislation related to income distribution, such as the Company Law of the People's Republic of China, the Labor Law of the People's Republic of China, and the Labor Contract Law of the People's Republic of China, thereby indirectly affecting the distribution of the non-public economy and promoting the balance and coordination between the property rights and interests of enterprise investors and the labor remuneration and labor welfare of laborers. Second, in a mixed-ownership economy controlled by public capital, the principle of distribution according to work can be fully implemented and implemented in the operation and distribution of enterprises, thus correcting and alleviating to a considerable extent the problem of excessive gap between the rich and the poor formed by the principle of capital distribution. (2) To give play to the decisive role of the distribution mode of "workers and multiple auxiliaries" in the realization of common prosperity In the new stage of development of the mainland, the core of giving play to the decisive role of the distribution mode of "workers and multiple auxiliaries" in realizing common prosperity lies in adhering to and consolidating the dominant position of the principle of distribution according to work, and promoting the construction of an income distribution system that embodies efficiency and promotes fairness. First of all, to give play to the decisive role of the distribution mode of "labor and multiple auxiliaries" in realizing common prosperity, it is necessary to uphold and consolidate the dominant position of the public economy. First, through the implementation of the principle of distribution according to work, the public-owned economy has eliminated the exploitation caused by the difference in the possession of the means of production, thus providing a fundamental guarantee for the property rights system for solidly promoting common prosperity. At the present stage on the mainland, the basic distribution principle of the public-owned economy is the principle of distribution according to work, which mainly embodies the direction of common prosperity. According to the mainland constitution, socialist public ownership has eliminated the system of exploitation of man by man, and has implemented the principle of distribution according to his ability and according to his work. In terms of nature, the mainland's socialist public-owned economy is the fundamental embodiment of the essence of socialism by "eliminating exploitation and eliminating polarization" through the realization of the principle of each according to his ability and distribution according to his work. In terms of quantity ratio, the public-owned economic units generally take the initiative to implement the principle of distribution according to work and reasonably determine the appropriate proportion of accumulation and consumption, so that the labor remuneration can maintain a relatively reasonable proportion in the primary distribution, and promote the simultaneous growth of labor remuneration with the increase of labor productivity, thus laying a fundamental institutional guarantee for solidly promoting common prosperity. According to statistics, the average salary of state-owned enterprises has always been higher than the average salary of private enterprises. For example, in 2020, the average wage of employees in state-owned units in mainland China was 108132 yuan, which was not only higher than the average wage of employees in urban collective units (68,590 yuan), but also much higher than the average salary of employees in urban private units (57,727 yuan). Second, the public economy has laid a solid material foundation for promoting common prosperity through relatively high overall economic performance. In the practice of economic development on the mainland, the two main forms of the public-owned economy, namely, ownership by the whole people and collective ownership, both show relatively high economic performance. At the level of macroeconomic performance, the mainland's public-owned economy is the micro foundation and an important means for the state to adjust its economy in line with the requirements of the development of socialized large-scale production, thus making outstanding contributions to national construction, national defense and security, and the improvement of the people's living standards. In terms of enterprise performance, mainland state-owned enterprises have both high overall economic performance and high microeconomic performance. For example, in 2020, the net profit of central enterprises increased by 2.1% year-on-year, thus making an important contribution to the mainland's taking the lead in controlling the epidemic, resuming work and production, taking the lead in realizing economic growth from negative to positive, as well as fighting a decisive battle against poverty and winning a decisive victory in an all-round well-off. This confirms General Secretary Xi Jinping's correct assertion that "state-owned enterprises are an important force in promoting national modernization and safeguarding the common interests of the people". Therefore, to give full play to the decisive role of the distribution mode of "labor and multiple auxiliaries" in achieving common prosperity, at the level of state-owned economy, it is necessary to strengthen and optimize large state-owned enterprises and state-owned capital, and promote state-owned enterprises to grow into world-class enterprises with global competitiveness and influence; At the level of mixed ownership economy, it is necessary to focus on promoting and developing the mixed ownership economy controlled by public capital; In the rural economy, it is necessary to uphold the nature of collective ownership of rural land and actively explore the development of a new type of collective economy and cooperative economy. Second, to give full play to the decisive role of the distribution mode of "labor owners and multiple auxiliaries" in the realization of common prosperity, it is necessary to correctly handle the relationship between accumulation and consumption, so that the proportion of accumulation and consumption is in a relatively reasonable state on the whole, so as to promote the relatively synchronous growth of labor remuneration with the improvement of labor productivity, so as to achieve and maintain a relatively high proportion of labor remuneration in the internal distribution of production units. Excluding the taxes paid, the total income of enterprises owned by the whole people is mainly composed of three parts: the income of state property (mainly manifested in the profits paid by state-owned enterprises), accumulation, and the remuneration of workers (i.e., consumption); The total income of a wholly-owned collective-owned enterprise is mainly composed of two parts: accumulation and consumption (which can be divided into workers' remuneration and workers' share income). The total income of a mixed public-private capital enterprise is mainly composed of three parts: share income (which can be divided into public share income and private share income), accumulation and labor remuneration (i.e., consumption). The growth of accumulation lays the foundation for the realization of the overall and long-term interests of the laborers, while the growth of consumption is the ultimate goal of socialist production. Therefore, in order to improve the mechanism and refine the rules of the principle of distribution according to work, it is necessary to correctly handle the relationship between accumulation and consumption, so as to meet the needs of expanding the accumulation of reproduction and ensure the growing consumption level of laborers, consciously realize the simultaneous increase of labor remuneration and labor productivity, and effectively promote common prosperity at the level of primary distribution. Thirdly, to give full play to the decisive role of the distribution mode of "labor owners and multiple auxiliaries" in the realization of common prosperity, it is necessary to scientifically distinguish the difference between the quantity and quality of labor, so as to reflect and ensure that the labor remuneration of scientific research workers, management workers and high-skilled workers is at a relatively reasonable level in the primary distribution. In the socialist market economy on the mainland, the principle of distribution according to work is mainly expressed in the market-oriented distribution according to work, that is, the distribution of publicly-owned production units is mainly in the form of money, and thus the remuneration of laborers is correspondingly expressed in the form of monetary wages. Since the education and training expenses borne by workers and their families still account for a large proportion, the market-based distribution according to work still needs to recognize and distinguish the quantitative and qualitative differences of labor, and fully consider the impact of labor complexity on value creation, so as to fully reflect the outstanding contributions of scientific research, management and high-skilled labor in value creation and wealth creation. Therefore, the public-owned economy should reduce the irrationality of the pay gap between workers and promote relative equality (i.e., common prosperity) in the field of primary distribution through the improvement of the specific income distribution mechanism. In short, at the distribution level, to promote common prosperity, it is necessary to give full play to the decisive role of the distribution mode of "labor owners and multiple auxiliaries" in the realization of common prosperity, and solidly promote the scientific and rational distribution principle according to work, so as to achieve the harmony and unity of fairness and efficiency in distribution. The viewpoint that the "first distribution" carried out within the enterprise is mainly determined by the property rights of the factors of production related to market competition and that it mainly depends on market mechanisms such as supply and demand is one-sided. II. The "National Legal Policy" Distribution MethodThe relevant laws, regulations and policies of the state on the distribution of wealth and income (hereinafter referred to as the "national legal policy") are the distribution methods with the state as the main body and running through the primary distribution and redistribution, including laws and regulations, taxes, transfer payments, public goods and services and other core subsystems. The "national legal policy" method is a mechanism through which the country's wealth and income adjustment is realized, and it plays an important auxiliary role in promoting common prosperity. To solidly promote common prosperity, it is necessary to give full play to the important guiding role of state regulation in promoting common prosperity through the "national legal policy". (1) Give play to the important role of laws and regulations in solidly promoting common prosperityThe relevant laws and regulations of the state on wealth and income distribution provide legal guarantees for regulating and regulating wealth and income distribution, so as to guide the development of wealth and income distribution in the direction of common prosperity. To solidly promote common prosperity, it is necessary to give full play to the important guiding role of laws and regulations in regulating the distribution of wealth and income. In the process of primary distribution, national labor legislation can provide a solid legal guarantee for the protection of the legitimate rights and interests of workers and the solid promotion of common prosperity. Specifically, it is necessary to promote the adaptation of relevant laws and regulations such as labor law and minimum wage standards to the level of development of social productive forces, so as to promote the simultaneous improvement of labor remuneration and labor productivity within enterprises. The labor legislation of the mainland country can reflect and safeguard the legitimate rights and interests of workers at the legal level, such as stipulating the signing of labor contracts, safeguarding legal working hours, limiting overtime hours, paying holidays and remuneration for overtime work, collective bargaining of enterprise wages, punishing arrears of wages, employee insurance and welfare, etc., so as to promote labor and prosperity, and guide the development of primary distribution in the direction of common prosperity. In terms of labor remuneration, the national labor legislation provides a legal basis for workers to obtain reasonable labor remuneration in accordance with the law. The Labor Law of the People's Republic of China (hereinafter referred to as the "Labor Law") lists labor remuneration as a mandatory clause in labor contracts, stipulates the principles of wage distribution and wage increase, and lays a legal foundation for promoting common prosperity. Among them, the principle of distribution according to work and the principle of equal pay for equal work in wage distribution ensure the fairness of distribution among workers; The principle of "gradually increasing the wage level on the basis of economic development" ensures that workers can share the fruits of economic development. The minimum wage guarantee system in the Labor Law stipulates that the wages of workers shall not be lower than the local minimum wage. The Minimum Wage Regulations further refine the rules for the implementation of the minimum wage standard. The laws and regulations on the minimum wage standard have laid a legal foundation for the continuous improvement of the minimum wage standard, directly guaranteed the bottom line of workers' income, and thus solidly promoted the bottom line guarantee of common prosperity. In terms of workers' rights and interests, the national labor legislation provides a legal basis for workers to receive labor remuneration normally under the condition of rest and vacation in accordance with the law. The Labor Law stipulates the method of payment of wages "in the form of money to the worker on a monthly basis" and the principle of payment of wages "without deduction or unreasonable arrears", and emphasizes that workers are entitled to wages and benefits during their leave and participation in social activities in accordance with the law. On this basis, the Interim Provisions on Payment of Wages further regulate the payment of wages by employers through detailed rules. The Regulations on Guaranteeing the Payment of Wages to Migrant Workers regulates the payment of wages to migrant workers by refining the rules for the payment of migrant workers' wages, thereby providing a strong legal basis for ensuring that migrant workers receive their wages on time and in full. The "Interim Measures for the Management of the List of Targets for Joint Disciplinary Action for Untrustworthiness in Arrears of Wages for Migrant Workers" provides legal means to punish migrant workers in arrears of wages, so as to ensure that migrant workers receive their wages on time. With regard to workers' organizations, the national labor legislation has laid a legal foundation for bringing into play the active role of trade unions in collective bargaining of wages in enterprises, negotiating arrears of wages, and in terms of workers' insurance and welfare. The Trade Union Law of the People's Republic of China clearly enumerates the circumstances in which trade unions should negotiate with enterprises, public institutions and social organizations on behalf of employees (including various situations such as deducting or defaulting on employees' wages, arbitrarily extending working hours, etc.), and emphasizes the function of trade unions in assisting employers in running the collective welfare of employees. In the process of redistribution, national redistribution legislation can give play to the guiding role of the state in the regulation of wealth and income, thus laying a legal foundation for the realization of common prosperity. The state's macroeconomic regulation and control policies to regulate wealth and income through government interest rates, prices, taxes, transfer payments, etc., to ban illegal income, and to develop a social welfare and security system must be based on national laws and regulations on redistribution. For example, the Law of the People's Republic of China on the Administration of Tax Collection and the Detailed Rules for the Implementation of the Law of the People's Republic of China on the Administration of Tax Collection provide a legal and regulatory basis for regulating tax collection and payment, especially for investigating and dealing with tax evasion, "yin-yang contracts" and "sky-high remuneration". The Social Insurance Law of the People's Republic of China provides legal and regulatory guarantees for regulating social insurance relations and promoting citizens to share the fruits of economic development. It can be seen that at the level of the rule of law, to solidly promote common prosperity, it is necessary to give full play to the authoritative role of national laws and regulations in protecting the legitimate rights and interests of workers, safeguarding the equal status of labor and management, and preventing excessive wealth and income disparities. (2) Give full play to the important role of the national redistribution policy in solidly promoting common prosperityIn the redistribution link, the state's adjustment policy on wealth and income can correct the excessive gap between the rich and the poor caused by the primary distribution, and play a supporting role in promoting common prosperity. To give full play to the important role of the national redistribution policy in solidly promoting common prosperity, it is necessary to continuously improve the redistribution adjustment mechanism, and comprehensively use taxation, transfer payments, social security and other adjustment means to promote the synchronization of household income growth and economic growth. First of all, at the level of direct adjustment of wealth and income, to solidly promote common prosperity, the state needs to comprehensively use taxation, transfer payments and other adjustment means to systematically regulate the distribution of wealth and income, so as to narrow the gap between the rich and the poor and prevent the polarization of the rich and the poor. At present, after the mainland has completed the arduous task of eradicating absolute poverty, it needs to attach importance to and gradually solve relative poverty. In the socialist market economy on the mainland, the national tax system is able to regulate the excessive wealth and income of high-income groups. Taking the mainland tax system as an example, the type of tax directly linked to personal disposable income is personal income tax. Since the implementation of the revised Individual Income Tax Law in 1993, the threshold level of individual income tax in mainland China has been gradually raised, the individual income tax rate applicable to low- and middle-income groups has been gradually reduced, and the design of individual income tax rate bracket has increasingly played a role in the scientific structural adjustment of income. It can be seen that the individual income tax system in mainland China has effectively played a role in the scientific regulation of income in practice. From the perspective of the class nature of taxation, the formulation and improvement of tax laws and rules can more and more fully implement the principle of people-centeredness (especially the working people-centered). Therefore, the improvement of the national taxation system needs to adhere to the principle of people-centered (especially the working people-centered), with the improvement of the level of development of productive forces, scientifically regulate the excessive wealth and income of high-income groups, and gradually reduce the tax burden of relatively low-income groups. The national transfer payment system can not only provide basic livelihood security for low-income groups, but also provide necessary financial support for social undertakings such as improving people's livelihood and improving the level of public services in areas and departments that are relatively lagging behind in development, so as to promote the people to share the fruits of development. For example, the subsidy fund for the needy can directly provide basic living security for the needy. Balanced transfer payments from the central government to local governments can promote the equalization of basic public services between regions through financial coordination. The basic pension transfer payment can provide subsidized financial support for the operation of the basic pension insurance fund for urban and rural residents. Transfer payments can provide subsidized financial support for the improvement and security of people's livelihood in the elderly, young and marginal poor areas. It can be seen that to solidly promote common prosperity, it is necessary to give full play to the bottom-line guarantee role of the national transfer payment system in promoting the people to share the fruits of development. Second, at the level of indirect adjustment of wealth and income, the state needs to develop and improve the social equity guarantee system, so that it can give full play to its function as a foundation for economic development, so as to provide a bottom-line guarantee for the solid promotion of common prosperity. In the field of infrastructure, the state should systematically plan and scientifically allocate investment in the field of infrastructure in accordance with the needs of economic and social development, so as to provide hardware support for narrowing and eliminating regional disparities and urban-rural disparities, and improving the efficiency of the national economy and the quality of life of residents as a whole. In the field of people's livelihood, the state should focus on the shortcomings in the field of people's livelihood, according to the actual economic and social development, adapt to the level of development of social productive forces, and continue to systematically increase investment in employment, medical care, housing, education, social security and other areas of people's livelihood, so as to "continue to make new progress in learning and education, income from labor, medical treatment for illness, support for the elderly, and housing". The hardware construction in the field of infrastructure and the software construction in the field of people's livelihood are both to improve the efficiency of the national economy and the quality of life of residents as a whole, so as to solidly promote the national regulation and distribution mode of common prosperity. The scale and structure of the two types of investment need to be determined and implemented in an overall manner on the basis of full scientific demonstration and in accordance with the actual situation of the mainland's economic and social development. Therefore, to give full play to the important role of the national distribution policy in solidly promoting common prosperity, it is necessary not only to give full play to the distribution effect of the state on wealth and income at the level of direct adjustment, and to correct the trend of excessive differentiation between the rich and the poor in the primary distribution link, but also to improve the overall national economic efficiency, the sharing of public service facilities and the quality of life of residents through the continuous and systematic investment of the state in the field of infrastructure and people's livelihood. General Secretary Xi Jinping stressed that the development of the socialist market economy is a great creation of our party, and the key is to handle the relationship between the government and the market, so that the market can play a decisive role in the allocation of resources and give better play to the role of the government. (21) In a planned economy, price changes are mainly regulated by the government. In the socialist market economy, the adjustment of wealth and income distribution by changes in the prices of consumer goods and services is an important aspect of the market's regulation of resource allocation. Relatively stable prices, especially the moderate and stable prices of large-value commodities such as real estate, are of great significance for solidly promoting common prosperity. In the past, political economy only used "nominal income" and "real income" to describe the phenomenon of price changes and inflation, but now from the spirit of academic innovation, we will analyze in depth from the spirit of academic innovation, because the objective distribution effect of "price changes" has a special formation mechanism in the market economy, so it is necessary to examine and demonstrate the important factor of "price changes" as a separate distribution method. (1) The adjustment mechanism of price changes on wealth and income distributionUnderstanding and grasping the adjustment mechanism of price changes on wealth and income distribution is the basis for giving full play to the regulatory role of "price changes" in promoting common prosperity. First, the price change of a single commodity causes an income distribution effect among market players. First, changes in the prices of individual means of consumption directly cause income distribution effects between consumers and producers. The rise in the price of consumer goods leads to the transfer of a part of the income of consumers to the hands of producers through the exchange of goods. At the same time, the increase in the price of the means of consumption necessary for the reproduction of labor power will lead to an increase in the value of labor power, and in the absence of an increase in wages, will make wages lower than the value of labor power. Second, the price changes of individual means of production cause a series of income distribution effects among market players through the industrial chain and value chain. On the one hand, changes in the price of individual means of production cause an income distribution effect among upstream and downstream producers. For example, the rise in the price of means of production has led to the transfer of part of the income of downstream producers to upstream producers. On the other hand, changes in the prices of individual means of production cause changes in the prices of relevant means of consumption through the industrial chain and value chain, resulting in an income distribution effect between consumers and producers. Changes in the prices of raw materials have a greater impact on changes in the prices of means of consumption due to the gradual transfer of the value of fixed capital to the capital turnover characteristics of new products. Second, general price changes triggered by inflation and deflation will lead to income distribution effects at the macro level. A general and sustained increase in prices triggered by inflation will lead to a decrease in the purchasing power of fixed income earners and those whose incomes have risen more slowly than price increases, a portion of the income of creditors will be transferred to debtors, and the tax burden on the population will increase. The general and sustained decline in prices caused by deflation will lead to a general contraction of enterprise production or even bankruptcy, which in turn will lead to large-scale unemployment. Correspondingly, workers who lose their jobs as a result will lose their wages. Thirdly, the formation of monopoly prices allows part of the profits of the non-monopoly organization and part of the income of the final consumer to be seized by the monopoly organization. On the one hand, monopoly organizations rely on their dominant position in the production area, market share, technology patents, etc., to monopolize the purchase of their own means of production at low prices, and sell their products at monopoly high prices, thus grabbing part of the profits of non-monopoly organizations in the upstream and downstream industrial chains. Marx pointed out: "The monopoly price of certain commodities is nothing but the transfer of a part of the profits of the producers of other commodities to commodities with monopoly prices." "On the other hand, monopolies sell their own means of consumption at high prices and thus capture part of the income of the final consumer. The limit of monopoly high price setting lies in the consumer's desire to consume and purchasing power. Marx pointed out that "monopoly prices are determined neither by the price of production nor by the value of commodities, but by the needs and ability of the purchaser to pay". (2) To make good use of the regulating role of "price changes" in promoting common prosperity and to use the regulating role of "price changes" in promoting common prosperity is to standardize and guide the "price changes" mode according to the adjustment mechanism of price changes on the distribution of wealth and income, through the organic combination of market regulation and state regulation in price changes, so that it can promote the development of wealth and income distribution in the direction of common prosperity. First of all, it is necessary to give play to the role of the state in regulating and guiding changes in market prices, and promote the rational determination and basic stability of prices. First, the state consciously applies the objective law of price changes and formulates in advance an overall plan for commodity production and industrial development in accordance with the actual operating conditions and development trends of various commodity price changes, so as to promote the realization of a comprehensive balance between product supply and demand within and between various industries of the national economy, so as to avoid major fluctuations in prices caused by the intensification of contradictions between supply and demand. Second, the state should promptly track, monitor, and judge the price changes of important commodities that have a bearing on the national economy and the people's livelihood, and consciously use the national price monitoring and adjustment system, including economic, legal, administrative, and persuasion means, to regulate and guide prices to be within a reasonable range and maintain basic stability. Second, the state should manage monopolies according to law, prevent the disorderly expansion of capital, and give play to the scale advantages of large enterprises in socialized large-scale production, and at the same time oppose large enterprises to seize monopoly profits by relying on their own scale advantages to implement monopoly prices. In the modern global market competition, large enterprises with scale advantages are the main body of market competition. This kind of large-scale enterprise has the nature of scale monopoly or natural monopoly, embodies economies of scale in a concentrated way, has the function of promoting technological progress, and can reduce all kinds of costs, so as to meet the development requirements of modern socialized large-scale production. Therefore, the core of the state's management of monopoly according to law is not to oppose the relatively large scale of enterprises, but to oppose and punish all kinds of unfair competition behaviors adopted by monopoly enterprises to determine and maintain monopoly prices and thereby seize monopoly profits, such as monopoly agreements, abuse of market dominance, concentration of undertakings, and abuse of administrative power to eliminate or restrict competition. The state punishes and restricts acts of unfair competition in accordance with the law, which can effectively prevent and restrict the formation of monopoly prices, and thus help prevent the polarization of the rich and the poor. It can be seen that to make good use of the objective mode of "price changes" in promoting common prosperity, we should not only give full play to the regulating role of price changes in the allocation of resources, but also strengthen the regulation and guidance of price changes, so that they can promote the development of wealth and income distribution in the direction of common prosperity. General Secretary Xi Jinping pointed out that it is necessary to "improve the function of the capital market and give full play to the positive role of the modern capital market". Changes in the prices of financial products such as securities and bonds in the capital market can trigger corresponding expansion or contraction of household wealth and income of capital market participants. The stability of the capital market is of great significance to avoid the sharp fluctuation and sharp shrinkage of residents' property income, so as to solidly promote common prosperity, but it has not been discussed in the distribution theory of political economy in the past. Now, from the in-depth analysis of the spirit of academic innovation, since the distribution effect of the "capital market" has a special formation mechanism in the market economy, it is necessary to examine and demonstrate the "capital market" method as a separate distribution method. (1) Understanding and grasping the nature and law of price changes of capital market products is the basis for giving full play to the positive role of the "capital market" in promoting common prosperity. First of all, the price of capital market products needs to be based on the development of the real economy. In the case of stocks, for example, the shares themselves have no value and are essentially a certificate of ownership through which to claim surplus value. Correspondingly, the dividends and dividends received by stock holders are essentially the surplus value created by the workers employed by the real capital of the real economy represented by their stocks. The amount of stock income received by the holders of shares depends on the amount of surplus value created by the workers of the joint-stock company. If the actual capital represented by the stock is in a loss, holding the stock does not necessarily lead to a stock gain. From this point of view, stock holders must rely on the labor of workers in the real economy to get rich by earning the benefits of shares. It can be seen that financial development is inseparable from the labor of workers in the real economy, and there is no guarantee that stock holders can get rich by holding stocks. Secondly, the price changes of financial products in the capital market are affected by a variety of expected factors, so they have a certain speculative nature. In the case of stocks, for example, in stock trading, the price of a stock is constantly fluctuating, rather than necessarily rising continuously. In fact, any event that affects a stock's expected earnings can cause the stock price to fall. The speculative nature of stock trading does not directly benefit the relevant market participants at the same time, but rather makes the stockholders feel less wealthy. For individual traders, the huge volatility of the stock market may not only not be rich, but rather looted. It can be seen that the price changes of capital market products are based on the development of the real economy and are affected by a variety of expected factors, which leads to the transfer and distribution of social wealth value among market participants. (2) To make good use of the expansion and contraction role of the "capital market" mode in promoting common prosperity, it is necessary to standardize and guide financial services in the real economy according to the nature and law of price fluctuations of financial products, and effectively supervise and govern the violent shocks of the capital market, so as to promote the benign interaction between finance and the real economy, so as to promote and promote common prosperity. First of all, financial development should fully implement the purpose of serving the real economy, and continuously improve the service capacity and service level, so as to scientifically, accurately and systematically provide strong financial support for the wealth creation and value creation of workers in the real economy. In terms of service direction, the design and development of the financial product system should be committed to meeting the financial needs of key areas and weak links in the development of the real economy, especially the financial needs of R&D and innovation in key industries and key areas of the real economy, so as to promote and promote the wealth creation and value creation of workers in the real economy (especially those engaged in complex labor). In terms of service structure, the structure of the financial product system should adapt to and reflect the structure and changes of the real economy, give full play to the unique advantages of various financial products serving the real economy, and at the same time avoid and prevent the inherent risks of each financial product serving the real economy, so as to provide favorable conditions for the wealth creation and value creation of workers in all sectors, industries and fields of the real economy. Second, the state should effectively supervise and govern the financial regulatory system to prevent violent shocks in the capital market and avoid triggering huge expansion and contraction of market participants' wealth and income. General Secretary Xi Jinping pointed out that to solidly promote common prosperity, it is necessary to resolutely crack down on insider trading, stock market manipulation, financial fraud and other illegal income gains. To effectively supervise and manage the violent shocks in the capital market, it is necessary to give full play to the role of the financial regulatory system. In terms of supervising the shareholding structure of financial institutions, it is necessary to effectively prevent foreign financial capital from forming a financial monopoly on China through substantial control of mainland financial institutions, so as to avoid the formation of a large amount of financial monopoly profits and their flow abroad, and also to avoid the loss of the mainland's economic autonomy and the failure of the national security barrier. To prevent the financial monopoly of foreign capital in the mainland, it is necessary to strictly limit the conditions and equity ratio for foreign financial capital to participate in the mainland's commercial financial institutions, as well as the conditions for the establishment and business scope of foreign financial capital branches in China, through financial laws and regulations. In terms of the improvement and development of the financial regulatory system, it is necessary to systematically promote the construction of a dynamic and whole-process high-quality regulatory system that is compatible with various possible risks in the financial market, so as to prevent and resolve systemic financial risks and financial crises. On the one hand, the mainland's National People's Congress and other financial legislative departments should systematically promote the construction of relevant laws and regulations for financial market supervision and adapt to the development and practice of the mainland's financial market, so that there can be laws to follow for financial supervision in the whole process and all fields of financial market activities, especially in the emerging financial field. On the other hand, the financial regulatory departments should systematically improve the level and ability of financial supervision in terms of personnel quality, technical means, and regulatory mechanisms, keep up with the development of the financial market, and strive to achieve real-time tracking, timely prediction, scientific assessment, and rapid response. With regard to the opening up of the financial sector to the outside world, it is necessary to coordinate development and security, and be cautious in dealing with and fully justifying the issue of opening up the capital account to the outside world. Capital account control can effectively prevent the serious impact of foreign financial speculative capital on the domestic financial market and even the entire economic system. The opening up of the capital account needs to be carried out cautiously on the basis of full demonstration of feasibility and scientific assessment of risks, so as to avoid the formation of huge financial market shocks that exceed the anti-risk ability of the domestic capital market and the regulatory capacity of the financial regulatory authorities. It can be seen that to solidly promote common prosperity, it is necessary to make good use of the expansion and contraction effect of the "capital market", standardize and guide financial services in the real economy according to the nature and law of price fluctuations of financial products, and effectively supervise and control the violent shocks of the capital market, so as to promote the development of wealth and income distribution in the direction of common prosperity. Any donation to the disadvantaged groups, including donations from individuals and units to the disadvantaged groups, which can help the disadvantaged groups tide over temporary difficulties to a certain extent, and thus have a certain compensatory effect on improving the quality of life of low-income groups and promoting common prosperity. First of all, the act of donating to vulnerable groups can meet the urgent living needs of the needy groups to a certain extent, which is a useful supplement to the national social assistance system and the function of the bottom line. In recent years, charitable organizations and other social forces in mainland China have played an important role in carrying out extensive charitable assistance in many public welfare undertakings, such as disaster relief, poverty relief, medical assistance, and assistance to the elderly and the disabled. For example, from 2017 to 2021, the donation income of social organizations nationwide was 72.92 billion yuan, 91.97 billion yuan, 87.32 billion yuan, 105.91 billion yuan, and 119.25 billion yuan respectively. In 2020, the China Charity Federation and the 101 charity associations included in the China Charity Yearbook (2020) received a total of 34.402 billion yuan in charitable funds and materials, spent 33.327 billion yuan, and rescued tens of millions of people. Secondly, the act of donating to disadvantaged groups can improve the quality and employment skills of the labor force to a certain extent, promote their ability to work and start businesses, and then play a beneficial role in enabling them to obtain higher labor remuneration. Donations and assistance from individuals and units that get rich first to receive education and vocational skills training for the disadvantaged groups can eliminate the root causes of poverty and weakness caused by insufficient labor ability for the disadvantaged groups to a large extent. Student donations for disadvantaged groups and educational charitable trusts can play an important role in supporting the intellect. According to statistics, by the end of 2021, 580 charitable trusts had been filed nationwide, with a contract size of 3.47 billion yuan. In 2021, the largest single charitable trust in the country, "CITIC Trust 2021 Fangmei Education Charitable Trust", reached 200.01 million yuan. Thirdly, donating to relatively backward and difficult areas can, to a certain extent, narrow the development gap between regions, improve the quality of life of vulnerable groups in relatively backward areas and difficult areas, and thus promote balanced development and common prosperity between regions. The emergency support and assistance provided by the Xianfu area to the difficult areas can directly and quickly help the local people get out of their predicament. The continuous and systematic support and assistance in the field of people's livelihood in the relatively backward areas of the first-rich areas can improve the local development conditions to varying degrees, thereby continuously improving the quality of life of the local people. For example, provincial and municipal counterpart support has played an important role in poverty alleviation in poor areas. Since 2016 (as of 2020), 313 poverty alleviation projects have been implemented in the east-west region, with 19.5 billion yuan in aid to Tibet. Among them, Beijing alone has invested nearly 1.3 billion yuan to help Dangxiong and other four counties and districts achieve poverty alleviation by the end of 2018. To solidly promote common prosperity, it is necessary to give full play to the micro-supplement role of the distribution method of "donating to the poor and weak", and encourage individuals and units that are already relatively wealthy to make appropriate donations to the poor, the weak, the disaster-stricken and other difficult groups according to their own economic conditions through system building and cultural inspiration. On the one hand, it is necessary to standardize and encourage groups and enterprises with relatively high incomes to make certain contributions to public welfare and charity according to their own realities through the construction of the institutional system of public welfare and charity. As General Secretary Xi Jinping pointed out: "It is necessary to strengthen the standardized management of public welfare and charity, improve preferential tax policies, and encourage high-income people and enterprises to give more back to society." On the other hand, by carrying forward the core values of socialism and the traditional virtues of the Chinese nation of "helping the poor and helping the poor", we should advocate that the "first rich" think of the source when they are rich, be grateful when they are rich, give back to the society and repay the people, actively assume social responsibilities, invest in production in the "later rich" areas, transfer wealth, support public welfare, and do a good job in charity, etc., and practice the first rich to lead the later to become rich, and the richer to lead the poorer. All in all, in the new journey of building a modern socialist country in an all-round way, we should understand and practice various ways of distribution in an all-round way in the spirit of theoretical innovation of political economy, so as to promote common prosperity as a whole.

[The authors are Cheng Enfu and Gao Jiankun, Cheng Enfu is a member of the Chang'an Street Reading Club and a member of the Faculty of the Chinese Academy of Social Sciences]

Note: Authorized to publish, this article has been selected and included in the "Chang'an Street Reading Club" theoretical learning platform (People's Daily, People's Political Consultative Conference Daily, Beijing Daily, Chongqing Daily, Xinhuanet, CCTV, National Party Media Information Public Platform, Vision, Beijing Time, Surging Government Affairs, Phoenix News Client "Chang'an Street Reading Club" column synchronization), reprinting must be uniformly marked "Chang'an Street Reading Club" theoretical learning platform source and author.

Editor-in-charge: Liu Xingyue, preliminary review: Cheng Ziqian, Chen Jiani, re-examination: Li Yufan

Chang'an Avenue live

The Chang'an Street Reading Club was initiated and established with the encouragement and support of veteran comrades of the Central Committee, aiming to inherit the Prime Minister's legacy and practice national reading. Study, study, cultivate talents, and serve the country for the rise of China. At present, more than 1,000 members are mainly young and middle-aged cadres from various ministries and commissions of the central and state organs near Chang'an Avenue, students of the Party School of the Central Committee of the Communist Party of China (National Academy of Administration), representatives of the National Party and the National People's Congress and other people who like to write and write books, as well as the heads of national high-end think tanks determined by the Party Central Committee and the State Council, experts of the Political Bureau of the Central Committee for collective learning, and senior publishers and scholars of major central publishing institutions. In the new era, we insist on using reading to talk about politics, and actively inherit and develop the excellent traditional Chinese culture.

In order to thoroughly study and implement the spirit of the 20th National Congress of the Communist Party of China, we are now jointly carrying out relevant party building reading and learning activities for the party schools (administrative colleges), cadre colleges, Marxist colleges, and new era civilization practice centers (institutes, stations) where the central and state organs, central enterprises, and provinces, cities, counties (districts) are located. Recently, with the approval of relevant departments, it has been officially agreed that the Standing Committee of the National People's Congress, the Central Commission for Discipline Inspection and the State Supervision Commission, the Organization Department of the Central Committee, the Working Committee of the Central Committee and State Organs, the National Development and Reform Commission, the Ministry of Human Resources and Social Security, the Ministry of Education, the Ministry of Finance, the Ministry of Housing and Urban-Rural Development, the China Securities Regulatory Commission, the State Administration for Market Regulation, the Central Committee of the Communist Youth League and other designated units have joined the "Chang'an Street Reading Club" Party Building Reading Cooperation Mechanism, and jointly undertook the "Chang'an Street Reading Club" series of reading and learning activities.