Under the market economy system, how to restrict the difference between the rich and the poor in a reasonable and incentive range is a worldwide problem faced by all countries. The history of economic development in New China is the history of the countrys continuous exploration of the economic system in order to accelerate industrialization. Before the reform and opening to the outside world, China implemented a high standard of basic living security under the two basic policies of “high accumulation” and “distribution according to work”. In the 30 years since the reform and opening up, Chinas policy objectives are: to increase accumulation and encourage investment by ensuring the income of capital to accelerate economic development; to increase the liquidity of the income of the people, and restrict the gap between the rich and the poor in a certain range, to ensure social stability and domestic demand. After entering twentyfirst century, under the goal of building a welloff society in an allround way, the CPC has taken on eliminating poverty, narrowing the income gap and expanding the supply of public goods, as a shortterm goal of achieving common prosperity.