Xu Xiaonian: State-Owned Assets Should Be Allocated To 1 Billion 300 Million People To Stimulate Consumption.

The issue of income distribution has become one of the focuses of yesterday's forum.

Professor of central Europe Business School, known as "critical economist"

The core of adjustment is to raise family income.

Xu Xiaonian believes that in the past decade, the social security system is not in place; the distribution of national income is tilted to the government rather than to the residents; in terms of wealth accumulation, the accumulation rate of national wealth falls behind the accumulation of wealth in the state sector and the growth of wealth assets of Central enterprises.

All these factors have led to the high savings rate of the Chinese people and unwilling to spend.

Xie Guozhong also pointed out that the core of China's economic adjustment is not the exchange rate, but the problem of low household income. If we can raise the proportion of household income in the total economy by 50% and reach the normal level of the world, China and other countries in the world can basically solve their economic frictions.

"Surveys show that most of the income distribution in the past few years has been concentrated in the most high-end income groups, while the income growth rate of the middle and lower income groups has lagged far behind the income of high-end groups.

If we do not solve the problem of rent-seeking, we can not fundamentally change the income distribution of residents.

Xu Xiaonian said.

Yao Jingyuan, chief economist of the National Bureau of statistics, pointed out that there is a real injustice in the national income. When the social distribution gap is too large, the rich people have the ability to pay money, but have no desire to buy, but the poor are the opposite.

"The problem now is that investment has increased year by year, and the final consumption rate has decreased year by year, and the proportion of consumption and investment has been seriously unbalanced."

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Institutional rigidity restricts structural reform

Xu Xiaonian believed that in order to stimulate consumption, we should tilt the distribution of wealth and income to the residents, carry out system reform, and embody the principle of fairness in the market of one distribution and the two distribution market.

His prescription is to distribute state assets to the public.

"Our trillions of state-owned assets can be allocated to 1 billion 300 million people. The state assets are in the hands of the SASAC. No money can be spent on consumption. If we distribute them to the masses, we can become consumption purchasing power.

There are many policies. Instead of spending 4 trillion in the "tie Gong Ji", the government should put 4 trillion into the social security system. Instead of the state owned assets supervision and Administration Commission's trillion trillion state-owned assets, it is better to put it in the national social security fund to enrich our social security so that the people can safely spend their savings on consumption to support China's economic growth.

Xu Xiaonian said.

Yao Jingyuan said that there are mainly two ways to solve the problem of distribution gap: one is to make the cake bigger, and the other is to cut the cake again. Two.

He explained that the big cake is to ensure steady and rapid growth of the entire national economy, while cutting the cake is to deal with the relationship between government finance, corporate profits and the income of urban and rural residents.

"Government revenue has been growing for 20% years, and corporate profits have increased by 20%. The income of urban and rural residents is one digit growth."

Yao Jingyuan suggested changing government functions and saving financial expenditure.

"China needs structural reform."

Xu Xiaonian stressed, but regretfully, "the pformation of China's economic development model has not been changed for more than a decade.

The existence of institutional rigidity restricts structural reform. Only by breaking the rigidity of this system can we break this pattern.