It is a pressing issue to increase people's disposable income and lessen the burdens in their lives, says an article in Shanghai Securities News. An excerpt follows:

 

The Chinese Academy of Social Sciences published the Green Book of China's Social Security System on Monday. The report shows that the average annual disposable income of Chinese urban residents reached 9,421.6 yuan (US$1,224) in 2004, 6.24 times the 1,510.2 yuan (US$196) in 1990. The number for rural residents was 4,039.6 yuan (US$525) in 2004, 5.89 times of the 686.3 yuan (US$89) in 1990.

 

But during the same period, residents' average expenditure on medical care increased 19.57 times in urban areas and 5.86 times in rural areas. Expenditures on education also increased dramatically.

 

Living expenses increased faster than incomes, making it hard for the public to enjoy the fruit of economic development. It burdens the public, increases people's worries about the future, and restrains their spending. It has become a major factor restricting the country's sustainable economic development.

 

Since the 1990s the proportion of government and enterprises' disposable income in the total national income has increased continuously while the proportion of individuals' disposable income has steadily decreased.

 

At the same time, the government has retreated from many areas of public service. The result of the marketization reforms in public health, education, housing and the pension system is the rapid increase in individual expenses.

 

All these have placed a heavy burden on the public.

 

The current situation not only harms efficiency but also damages fairness. When the government controls more wealth but shoulders less responsibility in providing social welfare, there are numerous opportunities for extravagance and waste. Luxurious government office buildings are just products of such an abnormal mechanism.

 

(China Daily June 1, 2007)