Starting from Adam Smith's two books on the growth and distribution of wealth, this paper points out that the book on The Wealth of Nations talks about 'prosperity', the book on The Theory of Moral Sentiments talks about 'common', and the two books add up to common prosperity. Generally speaking, it is to make a cake with one hand and divide the cake with the other hand. The cake should be big and well divided. Then, the author analyzes how to make a big cake and divide it well, and puts forward that there are two main ways to make a big cake, one is to establish a market economic system, the other is to promote the development of urbanization. The redistribution method can be used to narrow the gap of income distribution, and the three redistribution methods of negative income tax, transfer expenditure and microfinance are analyzed. Finally, the author compares the history of China and India and points out the importance of social class circulation.
