(ECNS) -- In an interview with China News Service, Justin Yifu Lin, member of the Standing Committee of the Chinese People's Political Consultative Conference and dean of Institute of New Structural Economics of Peking University, has called for making bigger cakes.
"Comparative advantages help enterprises minimize their production costs. If the government can provide them with proper soft and hard infrastructure and cut transaction fees, enterprises will enjoy the greatest competitiveness in the domestic and international markets. This will maximize efficiency," he said.
"Boosting our economy with comparative advantages can create the most employment opportunities. The biggest difference between low and high-income earners is that the former group makes a living by working while a significant portion of income among the latter group stems from capital gains," he added.
"If enterprises become more competitive government assistance and subsidies could be saved for secondary distribution. And more resources can be used to improve urban and rural public services, education, temporary unemployment benefits and assistance for people in need. In this way, the income gap can be narrowed," he explained.
"Finally, for the third distribution, more appropriate tax policies could be applied to encourage extremely high-income earners to participate in social welfare activities. Via this, cakes are made bigger. Governments will solve income problems by developing the economy," he said.
(Reporters：Wang Shibo, Pang Wuji, Shi Rui)