Property Income, Income Gap and Government’s Choice of Public Policies

With the sustained and rapid economic growth in China,the income distribution form has changed greatly,which is embodied in the rapid increase of property income in people’s total income.Because of the imbalance of the property distribution,the increase of property income in a short time will enlarge the income gap in China.But if we look at this phenomenon in the long term,property income can help the emergence of more and more middle-income earners so that the income gap will be reduced and can also help drive economic growth,thus we should support and encourage property income.At the same time,the government should choose the policies which can guarantee low-income earners’ life and finally reduce the income gap.