On April 24, 2023, the Social Security Research Center of Wuhan University and the Department of Public Economics and Social Security of the School of Politics and Public Administration jointly held the Luojia Social Security Forum. Professor Wan Guanghua, distinguished second-level Professor of Fudan University, Director of the Institute of World Economy, Key Research Base of Humanities and Social Sciences of the Ministry of Education, and former senior official of the United Nations and Asian Development Bank, gave a special lecture entitled "Starting from the Income Distribution Effect of Government Revenue and Expenditure". The lecture was hosted by Professor Xiang Yunhua, Director of the Social Security Research Center of Wuhan University. Meng Yingying, Zhang Ping and Huang Ruting from the Department of Public Economics and Social Security, Li Gang from the Department of Public Utilities Management and more than 30 students attended the lecture.

The lecture is divided into two sessions. In the first session, Professor Wan Guanghua presented the results of his recent research entitled "Income Distribution Effects of Government Revenues and Expenditures: An Analysis based on cross-country Data". The study looks at current income inequality around the world. First of all, Professor Wan sorted out the role of the market and the government in the allocation of resources in the process of economic and social development, analyzed the effect of the gap between the rich and the poor caused by the total government revenue and expenditure and its structure, and especially discussed the income distribution effect of social security contributions and social security expenditures. He pointed out that government revenue and expenditure are significantly negatively correlated with income inequality, and the total expenditure effect is greater than the total income effect. Among them, taxes and social security contributions in government revenue, subsidies and social security expenditures in government expenditure have significant income distribution effects, and the effect of social security contributions is stronger than that of taxes, and the effect of social security expenditures is stronger than that of subsidies. He argues that the effects of income distribution are also heterogeneous among economies with different levels of development and different degrees of economic freedom. Based on the above findings, Professor Wan believes that given the total government income or total expenditure, countries should adjust the structure of income and expenditure according to their own institutional, historical and cultural background, and optimize the income distribution effect of government expenditure.

In the second session, Professor Wan Guanghua put forward his thinking on "common + prosperity" through a series of comparative analysis of data and charts. He believes that "rich" is more important than "common"; Second, the wealth gap is more serious than the income gap; Third, "common" means eliminating inequity; Fourth, primary distribution is more important than redistribution. Fifth, "common prosperity" should be promoted through identity cards to replace household registration, promote urban citizenship, tailor the poverty below the higher poverty line, reform the tax system, and increase the supply of public goods and services. Finally, he pointed out that the complete abolition of the household registration system, the identification of true and false poverty, the excessive retention of enterprises, and the low share of household GDP need to be studied, and we can learn from the experience of Northern Europe and East Asia to refine the goal of common prosperity.

In the question and discussion session, Professor Wan Guanghua had a warm interaction with the on-site teachers and students. On the questions raised by teachers and students present, he made in-depth explanations and responses one by one. The forum was successfully concluded with warm applause from teachers and students.

(Photo & Text | Bai Huixin Wang Jiao)