ABSTRACT
How should we evaluate the current degree of income disparity? In the early period of reform, Deng Xiaoping proposed the policy of “letting some people get rich first.” Highly strategic in its approach, this was aimed at the extreme egalitarianism as practiced under a planned-economy system. It was absolutely correct, and was profoundly significant in breaking up the “one big pot of rice” egalitarian mentality. However, many people at the time lacked a very acute understanding of this strategic way of thinking. Due to inadequate “thought preparation,” they did not realize that income disparities are a necessary part of a market economy. Moreover, it was unclear exactly how much income disparity was necessary and must be tolerated during the primary stage of socialism. Such things were not given adequate attention at the time.
