How to understand that the market plays a decisive role in the allocation of resources?

Only by playing a better role can the market play a decisive role in the allocation of resources.

Let the market play a decisive role in the allocation of resources" is a major breakthrough in theory and a major innovation in practice at the Third Plenary Session of the 18th CPC Central Committee, which has distinctive characteristics of the times and is the main direction of attack that must be firmly grasped in deepening the reform of the economic system.

To further handle the relationship between the market and the market, in fact, it is necessary to properly handle the question of whether the market plays a decisive role or a decisive role in the allocation of resources. Economic development is to improve the efficiency of the allocation of resources, especially scarce resources, and to produce as many products as possible and obtain the greatest possible benefits with as few resources as possible. Both theory and practice have proved that the market is the most efficient form of allocating resources.

It is the general law of the market economy that the market determines the allocation of resources, and the market economy is essentially the economy in which the market determines the allocation of resources.

To develop the socialist market economy, we must not only play the role of the market, but also play a leading role, but the functions of the market and the role of the market are different. The decision of the plenum put forward clear requirements for giving better play to the leading role, emphasizing that scientific macroeconomic regulation and control and effective governance are the inherent requirements for giving full play to the advantages of the socialist market economic system.

Argument: The market plays a decisive role in the allocation of resources, which is in line with the current situation of China's development!

Enabling the market to play a decisive role in the allocation of resources is the essential requirement of a market economy. The market economy is an economic form in which the market mechanism guides the allocation of social resources and realizes social production and reproduction. The salient feature of the market economy is the universalization of market exchange rules, that is, the market plays a decisive role in the allocation of resources, and promotes the allocation of resources to maximize benefits and optimize efficiency in accordance with market rules, market competition and market competition.

The so-called "decisive role" refers to the fact that the market is in the dominant position in the allocation of resources in all fields of social production, and has the direct right to decide on commodities in production, circulation, consumption and other links. "Decisive" means that there can be no force that takes precedence over or even replaces the role of the market. The mechanism of the market to determine the allocation of resources mainly includes the first mechanism, the supply and demand mechanism, the competition mechanism, and the incentive and restraint mechanism.

Its role is mainly embodied in the profit-oriented guide to the flow of factors of production, competition as a means to determine commodities, to adjust the relationship between supply and demand with the lever, so that the total social supply and total demand to achieve an overall balance, the factors of production, the direction of production factors, product consumption, profit realization, and benefit distribution mainly rely on market exchange to complete. Practice has proved that, so far, under the conditions of a market economy, no force has been found to be more extensive, more efficient, and more sustainable than the role of the market. Therefore, as long as the market economic system is practiced, it is necessary to respect the dominant position and decisive role of the market in the allocation of resources, and no other force can replace the role of the market.

The meaning of making the market play a decisive role in the allocation of resources refers to the power to allocate resources to the market mechanism, that is, the supply and demand relationship, the first and other factors spontaneously guide the flow and distribution of resources, rather than directly intervening by the first class. The theoretical basis for this is the idea of free market economics.

The basic principles of the operation of the market economy are free competition, regulation of supply and demand, and survival of the fittest. Market players independently determine the scale of production and consumption according to the level of the market, so the dominance of resource allocation decisions is in the hands of the market. If markets do not exist or are restricted, there will be misallocation, waste, and inefficient allocation of resources, leading to the loss of vitality and creativity of the entire economy.

In the market economy, ** is the carrier of information and signals, which reflects the perception of the value of the commodity and the negotiation results of the trading conditions between the buyer and the seller. The market will self-regulate, make the allocation of resources more reasonable, and be able to adapt to changes in market demand and maintain the stability of the system.

In short, making the market play a decisive role in the allocation of resources means respecting the laws of the market, giving play to the natural role of the market in regulating the allocation of resources, improving the efficiency of resource utilization, and promoting economic growth. At the same time, however, it is also necessary to pay attention to the supervision of the market structure and institutional arrangements to ensure that the market is fair, just, and transparent, and to prevent market failures and resource outflows.

It is necessary to strengthen the decisive role of the market in the allocation of resources.

1.It is a general law of the market economy that the market determines the allocation of resources. Because in social and economic activities, resources are always relatively scarce relative to people's needs, which requires people to rationally allocate limited and relatively scarce social resources and produce the most products and services with the least resource consumption.

2.The market determines the allocation of resources, which can maximize the efficiency of resource allocation. The market is slow and the allocation of resources is actively realized through the role of the market mechanism.

The market mechanism refers to the process and mechanism of the interconnection, mutual restraint and interaction between the main factors of the market, that is, market supply and demand, competition and competition.

3.The market determines the allocation of resources, which can continuously promote the development of production to new fields and new levels. Production for the sake of the market is the essential characteristic of the market economy, and the continuous expansion of the market is the condition for its survival and development.

To this end, it must not only actively explore the domestic market, but also expand the international market.

4.In order for the model market to play a decisive role in the allocation of resources, it is necessary to further break down all forms of monopoly. The road of reform that China has embarked on is itself a process of constantly breaking down monopolies and promoting competition.