In this age of high-speed social progress, the issue whether China should consider inequality more than economic growth has aroused a wild contention. Economic growth is increase in a country’s productive capacity, as measured by comparing gross national product in a year with the GNP in the previous year. Increase in the capital stock, advances in technology, generation of employment and improvement in the quality and level of literacy are considered to be the principal causes of economic growth.
There are different views on this issue. Some people claim that China now is finitely ready to shift the concentration from economic growth to reducing inequality, while others maintain the opposite. The following paragraphs explore some of the arguments from both pro side and con side. China now is facing a severe social concern with the high level Of inequality which may lead to a lot of problems. China’s Gin coefficient, a widely accepted measure of income distribution, reached 0. 73 in 2013. It puts China among the most unequal countries in Asia and at the higher end of the global range. While rich people are enjoying the higher living standards exulted from the economic growth, poor people are still suffering. The poor are usually unemployed or have low income and have little access to health care. Without enough money, poor family cannot support their children to get high education, which leads to poverty for the next generation.
Also, inequality not only causes social conflicts and the potential for even greater ones in the future, but undermines the Chinese belief in their government, and work ethic. Therefore, it is urgent to reduce the gap between the rich and the poor. However, this claim is considered unconvincing by the other side. Some of the economists of China stated that consider the rapid economic growth in recent years, the short- term income inequality is doing a great job in dealing with the current economic situation in China and in the long run, inequality begins to fall after some point.
They believe that China should focus more on economic growth because of the weak and unstable current economy condition. In economic data released in 201 3, China’s economy grew just 7. 5 percent in the second quarter of the year, down from 7. 7 percent growth in the first quarter, and down significantly from the 10 percent. In a closer look t how Chinese people are faring day-to-day, disposable income growth for China’s urban households slipped to 6. 5 percent over the first half of this year compared to 9. Percent growth in the first half of 2012. The dip in growth has its leaders and economists nervous that China may fail to meet its 7. 5 percent growth target for the first time in 15 years. From what has been discussed above, the shift from economic growth to reducing inequality can bring benefits but also cause plenty of problems. In summary, Chinese government should consider all the arguments from both sides and make a suitable solution to this problem.