Abstract: Abstract:In the condition of market economy, the distribution of labor and capital has an objective regular pattern, which mainly depends on the choice of technique route, the technique equipment of labor, the relative price of capital and labor, the supply of working material and the convenience to realize the merchandise value. However, during recent years, the factors of excessive attention paid to the labor-economizing technology development and employment, continuing decline of relative price of capital and labor and deficiency market demand have led to a gradually decreasing tendency for the proportion of labor incomes to total incomes. This trend have broadened the income gap, sharpened the supply and demand contradiction of social security and intensified the conflict of labors and capitalists, all of which bring negative influence to social harmony. So it is time for the government to encourage the capital-economizing technology development and employment, ameliorate market environment and perfect pay policy and interest policy to keep a proper distributive proportion of labor and capital