Advantages and disadvantages of market economy and planned economy 10

Disadvantages of market economy: The market economy itself has the defects of lag, blindness, and spontaneity, and it is not omnipotent.

Many enterprises and businesses are dishonest in order to make huge profits, resulting in a considerable degree of disparity between the rich and the poor.

China has not yet completely established a social security system that is compatible with the market economic system, so there are cases of arbitrary collection of fees. It is necessary for the state to regulate and control the economy. It is also necessary to strengthen the building of socialist spiritual civilization in the whole society, establish social morality and professional ethics, and eliminate all kinds of ugly phenomena.

Disadvantages of the planned economy: The disadvantages of the planned economic system are the absence of owners, the failure of the incentive and restraint mechanism, and the lack of indicative effect on the economy, which leads to the enthusiasm of workers and the lack of rational allocation of market resources, and the final result is that the economy does not develop and the people's living standards decline. In fact, China's economic reform is to change this system, introduce market competition, realize the rational allocation of resources, fully mobilize the enthusiasm of laborers, and ultimately enhance economic strength and improve the people's living standards.

1. The characteristics are different. The planned economy is mainly based on planned management, and at the same time attaches importance to market management; Implement a variety of program types in program management; Paying more attention to macroeconomic regulation and control and comprehensive balance. The characteristics of the market economy are autonomy, equality, competition, openness, and orderliness.

2. The essence is different. The essence of the planned economy is the economic operation system that regulates economic activities according to the plan. The essence of the market economy refers to the economic form of allocating social resources through the market.

Markets can be tangible or intangible. 3. Different application fields. The application field of the market economy is social science, and the application field of the planned economy is social science and economic production.

The respective advantages and disadvantages of a market economy and a planned economy are as follows:

One of the greatest advantages of the market economy is that it can use the means of the market to regulate and control the market, and the means of the market are basically made by every participant in the market. Nowadays, every country in this society has basically adopted a market economy, and if you want to integrate into this world, you must adopt the system of a market economy. Only when the market economy system is deeply rooted in the hearts of the people and has the support of a country can I continue to play a role in this society.

Although the market economy can promote the economic development of a country to a certain extent, there is also a very large market economy. One of the biggest shortcomings of the market economy is that it learns to produce economic crises, whether it is the Asian financial crisis in 1997 or the subprime mortgage crisis in 2008, which are basically caused by the market getting out of control.

At the beginning of our country's development, it basically adopted the planned economic system, and although it did not have an advantage over the market economy in terms of efficiency, it was regulated and controlled by our country at the macro level. You must know that when other countries first started to develop, they basically used primitive aggression to obtain primitive accumulation, but our country adopted a different way, that is, the planned economic system. <>

Through the coordination of rural and urban resources, our country has led to the industrial development of cities. After the development of industry, our country has fed back agriculture through industry, so that agriculture has also achieved better development.

Of course, there are also very big problems in the planned economy, and the biggest problem is the problem of low efficiency. It is precisely because of the relatively low efficiency that our country began to adopt the system of market economy after the reform and opening up, and the market economic system has become a unique economic system of our country. <>

Through the above analysis, we can find that both the market economy and the planned economy have advantages and disadvantages. Our country has now transitioned to a socialist economic system with Chinese characteristics, and this characteristic socialist market economic system is in line with the development of our country.

A market economy is a spontaneous economy. It is an economy that automatically adjusts economic behavior according to market supply and demand, while a planned economy is an economy that develops according to macroeconomic regulation and control. Compared with the planned economy, the market economy is more dynamic.

The market economy exerts individual initiative and can easily get out of control. However, it is not easy to mobilize enthusiasm in the planned economy, but it can be arranged as a whole.

1. The advantages of the market economy are as follows:

1. It can be that economic activities follow the requirements of the law of value, adapt to the changes in supply and demand, and allocate resources to links with better benefits through the function of value leverage and competition mechanism;

2. Able to achieve survival of the fittest and promote technological and management progress with pressure and motivation;

3. It is sensitive to various economic signals and can promote the timely coordination between production and demand;

4. Adjust prices and control prices without disorder. In particular, at the current stage, the administrative functions of the supply and marketing system should be brought into play, and a planned economic system should be implemented for its departments.

5. Correct the drawbacks of market failure: monopoly, external influences, public goods, incomplete information;

6. Be able to concentrate manpower, material resources and talents for key construction with a high degree of effectiveness, and concentrate limited funds to develop key industries.

2. The shortcomings of the market economy are as follows:

1. The adjustment of the balance of economic aggregates, the adjustment of macroeconomic structure, the ecological balance and environmental protection is powerless;

2. The spontaneous action of the market mechanism is easy to cause economic imbalance and blindness, resulting in the waste of resources;

3. The role of market law will cause the widening of the gap between the rich and the poor and the emergence of polarization;

4. Market competition will bring about environmental pollution and ecological problems;

5. Ignoring long-term interests and overall social interests, and being unable to regulate the total economic aggregate;

6. The market mechanism appears weak and powerless in the face of large-scale structural adjustment.

The main advantages of a market economy are:

First, the market can spontaneously realize the allocation of resources, and market regulation is the most cost-saving way of economic regulation. It reduces spending and scales down accordingly.

Second, the consumer's choice determines the production of the enterprise, so that the consumer's wishes can be satisfied to the greatest extent. Market regulation is the most democratic form of economic regulation.

Third, the market information is relatively accurate. Consumers use monetary votes to convey demand information, and their votes for various goods are based on real needs, and there is no slightness in the slightest.

Fourth, competition in the market can better mobilize people's enthusiasm for production. Under the planning system, enterprises can also organize various competitions; However, the competition is mainly to encourage the advanced, and the competition is mainly to punish the backward, and the role of the two in stimulating people's potential is very different.

The disadvantages of a market economy are:

1.Income is unevenly distributed, and most low-income earners have less say in the allocation of resources. There are multi-level differences between people, such as talents, physical strength, wealth, opportunities, values, and family burdens, and the market will further amplify these differences, causing greater polarization.

2.There are some monopolistic industries in a market economy. Big fish eat small fish, and the market pursues a law of the jungle.

Monopolies may seek private gain at the expense of consumers. 3.Environmental pollution is relatively serious in the market economy.

Controlling pollution or reducing pollutant emissions is costly. Cutthroat competition in the market often leads to the closure of companies that are more concerned about environmental issues.

4.Market economies often experience high unemployment rates. The goal of a business is to make money, and the premise of absorbing employees is that the employee can make money for the business.

Machines are more obedient than people, and businesses tend to replace human labor with machines in the process of technological advancement. Rational companies do not take into account the employment rate and the associated crime rate and poverty alleviation issues from the perspective of the highest level.

Advantages of a market economy:

1.More efficient resource allocation: The basic principle of the market economy is that supply and demand are freely determined, the market is automatically adjusted, the allocation of resources is optimized, and the surplus is used to the greatest extent.

2.Free competition promotes innovation: The free competition mechanism of the market economy enables enterprises to constantly seek new production processes and technologies to improve production efficiency and reduce costs.

3.Individual Freedom of Choice: A market economy allows individuals to freely choose the goods and services they need, resulting in more satisfied consumers.

4.Freedom** leads to a broader market: A market economy encourages freedom** and international economic cooperation, which can expand the market, thus giving different countries or regions the opportunity to develop their advantageous industries.

Disadvantages of a market economy:

1.Unequal distribution: Market economies often lead to an unequal distribution of income and wealth, and the gap between rich and poor can widen. Pure years.

2.Lack of social responsibility: Businesses and individuals seek to maximize profits, but lack of social responsibility, which can have a negative impact on the environment and society.

3.Market volatility: The market economy can sometimes fluctuate dramatically, such as recession and inflation, causing economic losses to businesses and individuals.