Income Inequality and Jiangsu
Xinyi Ruan
Income Inequality has a negative impact on social development and well-being. Income Inequality is caused by a variety of factors and is now chronic and excessive in many countries. In parts of the world, the divide caused by income has gradually become more pronounced. United Nations data shows that the number of billionaires has more than doubled since the global financial crisis in 2008. Most of the wealth created globally is created by the wealthy class, with just below 20 percent of society’s wealth created by the poor class. This means that the poor have nothing to gain and wealth inequality is increasing. In this article, we focus on the adverse effects of income disparity on the direction of social welfare in China. China has entered a period of rapid development in the last three decades, and China’s national GDP has entered the forefront of the world, but the per capita GDP and national GDP are far apart, which is still behind 50. China has 34 provinces, but there is still a big difference in consumption level and GDP between provinces. The income gap between urban and rural residents in China is very wide, and the social welfare gap between urban and rural residents is also extremely wide. China’s cities are very well built and are equipped with excellent educational resources and medical facilities. In contrast, rural residents have never been able to get the same educational and medical help as the urban population, which is a major reason that makes the rural population unable to get wealth. In one of the more developed regions of China – Jiangsu Province of China – there are still only a handful of schools and hospitals, which are completely incomparable to the cities of Jiangsu. If absolute poverty persists in a country, it will affect the economic development and will eventually affect everyone. The problem of unfair distribution of social wealth will eventually lead to social instability. Providing opportunities for all and making them equal is the key to solving the problem.
