The absolute income gap between urban and rural areas is increasing, and farmers need to run faster to increase their income

2023-10-31

According to data from the National Bureau of Statistics, the per capita disposable income of rural residents in the first three quarters was 15705 yuan, an actual increase of 7.3% year-on-year; The per capita disposable income of urban residents is 39428 yuan, a real increase of 4.7%. The growth rate of farmers' income is not only higher than that of urban residents, but also higher than the GDP growth rate. Like food security, increasing farmers' income is an old topic, but it is an eternal theme of rural work. When visiting the grassroots and communicating with farmers, central leaders often ask the income status of the villagers, understand what they have grown and raised at home, and how their lives are going. At present, the biggest imbalance in China's development is the urban-rural development imbalance, with the prominent manifestation of the urban-rural income gap. Promoting the acceleration of farmers' income growth not only relates to common prosperity, but also helps to smooth the urban-rural economic cycle. Global historical data shows that the urban-rural income gap tends to gradually expand during the rapid industrialization stage and gradually narrow in the later stages of industrialization. In the United States, as the economy shifts from manufacturing to knowledge economy and service industry, the trend of urban-rural income gap has fundamentally reversed, and the income gap between rural and urban areas has narrowed to less than 20 percentage points. In Europe, the urban-rural income gap before 1820 was very small, but with the acceleration of industrialization, the gap continued to widen. Since the mid-20th century, with the implementation of rural development plans, the gap gradually narrowed. In recent years, China has entered the mid to late stages of industrialization, and with the reshaping of the relationship between industry, agriculture, and urban areas, farmers' income has continued to grow rapidly. In 2019, the goal of doubling income compared to 2010 was achieved one year ahead of schedule, and in 2022, the per capita disposable income of farmers exceeded 20000 yuan for the first time. From 2013 to 2021, the average annual income growth rate of rural residents was 1.7 percentage points faster than that of urban residents. The income ratio of urban and rural residents has decreased from 2.88 in 2012 to 2.45 in 2022, and the urban-rural income gap is gradually narrowing. However, compared to growth rate, individual residents still value absolute value and the difficulty of obtaining this income more. Although the relative income gap between urban and rural areas is narrowing, in absolute terms, the gap is still large and tends to increase. What is more noteworthy is that the driving force for increasing farmers' income has weakened. The stable economic growth still faces severe challenges both domestically and internationally, and the environment for farmers' employment has not yet fully recovered, affecting the growth of wage income. The high price of agricultural inputs increases the cost of agricultural production, which affects the growth of operating income. Due to financial constraints in reality, transfer income faces a ceiling. A large amount of rural resource assets are dormant, and the growth of property income is sluggish. Therefore, the growth rate of farmers' income cannot only be satisfied with outperforming urban residents, but also needs to accelerate to narrow the absolute gap. To promote the increase of farmers' income, we should not only focus on agricultural and rural resource factors, but also focus on the overall development of the national economy and continuously explore new paths. Under the conditions of market economy, it is necessary for wealthy farmers to enhance their skills and grasp the market, whether they are engaged in agriculture or work. Wealthy farmers also need to reduce farmers. Farmland cannot be converted into non agricultural land, but farmers can be converted into non agricultural land. This can not only increase non agricultural income from going out, but also improve the efficiency of staying in the village for agricultural purposes. Currently, operational income and wage income are the two most important "four carriages" of farmers' income

Edit:Hou Wenzhe    Responsible editor:WeiZe

Source:economic daily

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