Analysis of Influence of Widening Income Gap on Economic Growth

There is a kind of dialectical relationship among income distribution,consumption demand and economic growth.In recent years China's economy is developing quickly,but residents' income increases slowly,thus leading to the slow increase of consumption demand and the less contribution of consumption to the growth of GDP.On the basis of the residents' income gap,town and country gap and regional gap,the author theoretically analyzes the great influence on economic growth caused by income gap and also draws a conclusion that these gaps have restrained the consumption demand and have affected the development of economy.The central government regarded the expanding of the domestic demand as its strategic policy and the fundamental task.To expand the domestic demand,the policy of distribution should be adjusted and the resident income should be increased.