The Increasing Wealth Gap.

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The Increasing Wealth Gap in China The Increasing Wealth Gap 1. Introduction Nowadays, China is facing a huge challenge, which is the increasing gap between the rich and poor. Wealth gap refers to disparities in the distribution of economic assets and income.(Study-English, not dated) In 2010,World Bank survey shows that in China, 1% of the families have 41.1% of the whole country’s wealth, (Anon., 2010) the concentration of wealth is much bigger than any other countries. The purpose of this paper is to discuss why this is a serious problem, the causes and also, how to reduce it. 2.0 The increasing wealth gap 2.1 Why it is a problem 2.1.1 Unequal distribution of public services The construction of public service has been better but the unequal distribution of public services still exists. Basic education and medical security for society is very important, especially for low-income people. For example, migrant workers should enjoy medical insurance, for they almost undertake the most dangerous jobs in cities and are in low-income groups.(Zhang et al., 2010) In China, people give the government some money from their income to support the public service and it also help them live better after they retire. Rich people can buy the services, but the poor do not have the ability to pay for them. They cannot enjoy the full services. 2.1.2 Social unrest 2.1.2.1 Rising price Rich people have high consumption and it will raise the prices in certain extent. Therefore, poor people cannot afford to buy things; more seriously, they may not afford the basic living supplies. 2.1.2.2 Distrust of the government Class differentiation was apparent and people will dissatisfy with the society and they may distrust of government. More serious is the crime rate increase and it is harmful for society. 2.1.2.3 The change of

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