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| Growth of China’s Middle Class and Wealth Distribution Adjustment |
| HE Yu-chang, ZHENG Su-li |
| School of Economics, Shanghai University of Finance and Economics, Shanghai, 200433 |
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Abstract Growth of middle class is an important indicator of socio-economic development, and an important way to narrow income disparity and promote fair distribution of wealth. The rapidly widening wealth gap in China is an increasing concern. In china, wealth is concentrated in the hands of the few, and it has small middle class but very large lower class. Middle class in China grows quite slowly, and most of their wealth is in real estate and very little in financial assets. They have actually lost their ability to move up in the social ladder. The widening wealth gap makes it impossible for all people to share the achievements of reform and development, and hinders the healthy development of society. To construct a well-off society by the end of the “13th Five-Year Plan” and achieve common prosperity, the key is to expand middle class—that is, raising the proportion of the middle-income group, increasing the size of middle class, and regulating taxes on the rich. Measures we need to take are as follows: helping lower class to move upward to middle class with anti-poverty measures; increasing property income of ordinary residents through various channels so as to have a bigger middle class; regulating housing market to help stabilize the value of housing wealth; introducing wealth tax helping people move up in the social ladder so as to expand middle class.
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Received: 28 July 2016
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2016, Vol. 33 
