Let Some People Get Rich First: Has China Achieved Common Prosperity?
Beijing, China – A recent article published on the Chinese website Utopia (Wuyou Zhixiang) has sparked debate about the implementation of Deng Xiaoping’s famous let some people get rich first policy, acornerstone of China’s economic reforms. The article, titled 《邓选》学习 84 允许一部分人先富起来，实现了吗？(《Deng Xuan》Study 84: Has the Policy of Allowing Some People to Get Rich First Been Achieved?), argues that while some have indeed become wealthy, the gap between the rich and poor has widened significantly, raisingquestions about the ultimate goal of common prosperity.
The article, written by Jinggangshan Guanshin, analyzes data from the World Wealth and Income Database, comparing China’s income and wealth distribution with that of the world’s richest1% and 10%. The analysis reveals a stark reality:
Income Disparity:
- In 2022, the top 1% of earners in China accounted for 15.7% of total income, while the bottom 50% accounted for only 13.7%. Thismeans the income of the top 14 million earners surpassed the combined income of the bottom 700 million.
- The top 10% of earners in China accounted for 43.4% of total income, more than three times the income of the bottom 700 million.
- The articlehighlights that the income gap was smallest between 1950 and 1978, a period before the implementation of the let some people get rich first policy.
Wealth Disparity:
- The wealth gap has widened even more dramatically. In 1995, the top 1% held 16.5% of total wealth, while the bottom 50% held 15.9%. By 2022, the top 1% held 32.6% of total wealth, while the bottom 50% held only 6.2%.
- Thewealth of the top 1% in China is now 5.26 times that of the bottom 700 million, while the wealth of the top 10% is 11.1 times that of the bottom 700 million.
International Comparisons:
- In terms of income,China’s top 10% earners in 2022 accounted for 43.4% of total income, placing it third behind the United States (48.3%) and Japan (44.2%).
- China’s top 1% earners in 2022accounted for 15.7% of total income, second only to the United States (20.9%).
- In terms of wealth, China’s top 10% earners in 2022 accounted for 68.8% of total wealth, second only to the United States (70.7%).
- China’s top 1% earners in 2022 accounted for 32.6% of total wealth, second only to the United States (34.9%).
Concerns about Two-Pole Differentiation:
The article concludes by quoting Deng Xiaoping’s warning about the dangers of two-pole differentiation and the emergence of a new bourgeoisie. It emphasizes that if the policy leads to such outcomes, it would be considered a failure.
Implications and Debate:
The article’s analysis raises important questions about the long-term impact ofthe let some people get rich first policy. While it acknowledges the significant economic growth achieved under this policy, it also highlights the growing inequality and its potential consequences for social stability and the ultimate goal of common prosperity.
The article’s publication has sparked debate among Chinese citizens and academics. Some argue that thewidening wealth gap is a natural consequence of market forces and that it will eventually lead to a more equitable distribution of wealth. Others argue that the government needs to take more proactive measures to address the issue, such as increasing taxes on the wealthy and investing in social safety nets.
The debate over the let some people get richfirst policy and its impact on China’s social and economic development is likely to continue. The article serves as a reminder that while economic growth is essential, it must be accompanied by policies that ensure a more equitable distribution of wealth and opportunity.
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