Why is the market economic system better than the planned economic system?

I think the landlord's statement is a bit one-sided.

Both the market and planning are economic systems, each with its own advantages, but also with its own shortcomings. The market economy uses the market as a means of resource allocation, while the planned economy mainly uses the state's macroeconomic regulation and control to allocate resources. The advantage of the market economy is that it can achieve the free distribution of resources, but the disadvantage is the problem of the market itself (there is a related content in economics).

The advantage of the planned economy is that through macroeconomic regulation and control, the state can develop various industries and promote economic development in a planned manner, but the disadvantage is that it has too much control over the economy.

In the early days of the founding of the People's Republic of China, there was no economic foundation and the entire economy was paralyzed, but the planned economy strongly promoted the rapid development of the economy at that time. After the reform and opening up, with the rapid rise of China's economy, many contents of the planned economic system have been incompatible with or hindered economic development, and the establishment of a socialist market economic system has been proposed.

In the first half of the last century, most of the Western countries relied on the market economy, but after several economic crises, they also adjusted their economic system, that is, they mainly used the market economy to adjust their economic system, and at the same time adjusted it by the state's macroeconomic regulation and control.

So, I don't think it's a question of who's good or bad, it's just how you apply them.

I don't agree with this view, each has its own characteristics.

Traditional planned economic system.

The main drawbacks are: the responsibilities of the government and enterprises are not separated, the division is divided between the departments, the state has too much control over the enterprises, the power is too concentrated, and the law of commodity production and value is neglected.

and the role of the market mechanism, the egalitarianism in the distribution is serious.

The traditional planned economic system makes enterprises lack due autonomy, and enterprises eat the state's "big pot of rice."

The situation in which workers and workers eat the "big pot of rice" in enterprises has seriously suppressed the enthusiasm, initiative, and creativity of enterprises and the broad masses of workers, and has caused the socialist economy, which should have been full of vitality, to a great extent, to lose its vitality.

The planned economic system puts enterprises in the position of appendages of administrative departments: enterprises cannot operate independently, and the production quantity, production varieties, and supply of production factors and sales of production results of enterprises are all in the first planning department and the relevant administrative supervisors.

Under the control of the institution, if the enterprise wants to decide on its own production and operation. A little bit of getting rid of the planned arrangements, a little going against the wishes of the administrative authorities, until the leaders of the enterprises are removed from their posts or given other sanctions, the administrative power supports the operation of the entire planned economic system, and an enterprise wants to deviate from the track of the planned economy. Under a planned economic system.

In fact, individual residents are also in the status of appendages of the administrative department, and they are all arranged by the labor and personnel organs according to the plan, and resisting such arrangements is tantamount to ruining the opportunity to continue working, and the planning department must also arrange them; Assuming that individual residents want to leave the place of residence or work arranged by the planned economy, it can also be considered that the operation of the planned economy is supported by administrative power, and the planned economic system is composed of several sub-systems; The planned enterprise system, the planned fiscal and taxation system, the planned financial system, the planned first-class system, the planned labor and employment system, and the personnel system, etc.

At present, China's economic system is actually a market economy.

This economic system is very helpful for the economic development of the country, and the current market size of the country is very large. The core of the market is profit, which is the pursuit of exchange (selling money) and exchanging more, and all comparisons, choices, and plans in the market are aimed at profit.

In the past, it was a planned economic system, and now it is a socialist market economic system with Chinese characteristics. China's market economic system: based on market competition, guided by socialism, adhering to a variety of forms of ownership with public ownership as the mainstay, adhering to a variety of distribution methods with distribution according to work as the mainstay, adhering to the state's macroeconomic regulation and control, seeking efficiency with a market economy, and ensuring fairness with socialism.

In terms of the ownership structure, with public ownership as the mainstay, economies under various forms of ownership will develop together. With regard to the distribution system, we should implement a system in which distribution according to work is the mainstay and various forms of distribution coexist, combine distribution according to work with distribution according to factors of production, give priority to efficiency, and take into account fairness, which is conducive to optimizing the allocation of resources, promoting economic development, and maintaining social stability. In macroeconomic regulation and control, it is necessary to integrate the people's immediate interests with their long-term interests, local interests, and overall interests, and give better play to the advantages of the two means of planning and the market.

China's inability to determine the market**, especially commodities such as human resources and capital factors, is entirely an official standard of official rank. For example, human resources salaries, bank interest rates, issuance, transportation, university tuition, water, electricity, gas, and fees are all unilateral monopolies by officials and businessmen, and have nothing to do with the market. The market economy requires fair trade, free competition, and uniform rules, and it is unthinkable without the rule of law, while China is a country that governs the country according to law.

The socialist market economy (the market economy has no plan) is a form of economic movement that realizes the rational allocation of social resources and the equal distribution of income through both planned and market means.

At present, China's economic system is actually a market economy. This economic system is very helpful for the economic development of our country, and the current market size of our country is very large.

Under the situation that our country's resources are relatively scarce, what our country implements is actually a planned economy that was actually forced to do so in those years, because our country's materials are very scarce, and we must use our country's resources in the most rational way in this way.

Our country has now completely become a market economy. The decision to make a market economy in those years was actually a very correct decision, because at present, our country has achieved very good development by relying on this system, and our country's economy is very large, and it has become the second largest economy in the world. <>

The efficiency of the market economy is higher. The efficiency of the market economy is very high, because under this economic system, every job that everyone does in society is to create value for himself. Everyone is doing different things for their own benefit, and in this case, the motivation in society is endless, and everyone can find the value of their own existence.

Our country is currently very rich in supplies. Our country's current materials are very abundant, and the course of marketing has appeared, which shows that our country's materials have been significantly different from the previous forty or fifty years of material abundance. It is precisely because of this that our country will completely abandon the previous planned economy.

Compared with the planned economy, one of the biggest advantages of the market economy is that it allows the free flow of resources, but the foundation is actually very abundant in materials. There is no doubt that our country is very rich in materials at present, and our country's industrialization has achieved very good results, so our country's market economy will develop more vigorously.

Market economy. Because China is now practicing a market economy, although the state will have a certain degree of macroeconomic regulation and control, the market economy is still dominant, so I think the essence is a market economy.

A market economy, of course. China's economic system has long been a market economy, and now the economy is particularly prosperous.

At present, China's economic system is generally a market economy.

Summary. The second key point is the 14 th National Congress of the Communist Party of China, which formally established that the goal of China's economic structural reform is to establish a socialist market economic system. The whole party and the whole country have unified their ideological understanding and made clear the direction of progress.

The third point is the action of the world ** organization, which we have been negotiating for many years and which we are now about to join. The impact of China's accession to the WTO on China's economic structural reform is both realistic and long-term. Joining the WTO and acting in accordance with WTO rules means acting in accordance with the rules of the market economy, thus promoting our better participation in economic globalization and better building a socialist market economic system.

Hello dear. The first is the Southern Talk of Comrade Xiaoping in 1992. Prior to this, there were many debates about the relationship between the handling plan and the market.

Comrade Xiaoping pointed out that capitalism has a plan, socialism has a market, planning and the market are both means, and socialism can also develop a market economy. This is the theoretical basis for the transition from a planned economy to a socialist market economy, and it is a major breakthrough. After that, the actual work went smoothly.

The second key point is the 14 th National Congress of the Communist Party of China, which formally established that the goal of China's economic structural reform is to establish a socialist market economic system. The whole party and the whole country have unified their ideological understanding and made clear the direction of progress. The third juncture is the action of the World ** organization, which we have been negotiating for many years and are now about to join.

The impact of China's accession to the WTO on China's economic structural reform is both realistic and long-term. Joining the WTO and acting in accordance with WTO rules means acting in accordance with the rules of the market economy, thus promoting our better participation in judging economic globalization and better building a socialist market economic system.

You can take a look at O.

InPlanned economyWhat is produced, the decision-maker is**. Produced for the country and the people. to the needs of the country and the people to produce.

And whereasMarket economy. , but the decision-maker is the consumer (Namato realizes through the ability to pay). Of course, if it is a mixed economy, the decision-makers can be ** or consumers, mainly in the form of public and private performance.

Land: This includes minerals underground, rivers, oceans, the surface, and everything that grows on the surface.

Labor: A mix of people's efforts, work done, and all those who are willing to be able to work.

Capital: Known as artificially assisted production, it mainly includes capital, but its extension also includes all the machines and plants involved in production.

Enterprise: A person who is willing to invest in the production of a product or service, who makes decisions and takes risks, who are the owners and employers of land capital.

For example, relatively backward countries usually carry out labor-intensive production, that is, employ a large number of laborers and engage in inefficient production; Conversely, in developed countries.

Due to the high cost of labor, they are more willing to invest a large amount of capital in the purchase of equipment at one time for capital-intensive production.

Capital-intensive: Production is more dependent on machines than labor.

Macroeconomic. There are three main forms of distribution, namely preferential treatment, ability to pay and equal distribution. Of course, the current distribution approach of the major economies is a combination of all three – a mixed distribution model that ensures that everyone has a basic right to subsistence goods and services, but that there is competition for goods other than the basic necessities of survival.

Priority: Assign products or services based on tradition. For example, you are older or have worked for more than one year.

higher, with the right of priority allocation.

Ability to pay: Distribute products or services based on people's ability to pay. For example, if you are richer, you can get more and better products or services, otherwise you can't get them, you can only stare dryly.

Equal distribution: means that the country owns the factors of production.

and ensure that it is evenly distributed to everyone in society. For example, in the era of the planned economy, with food stamps.

It is useless to buy grain, and it is useless to have money.

Planned economy refers to the economic form of allocating resources with national directive planning; The market economy is an economic operating system that recognizes and maintains private ownership of the means of production, encourages free competition, and regulates supply and demand and resource distribution through market exchange.

These are two fundamentally opposed economic systems. Main Differences:

The mechanism by which the economy operates is different. The planned economy is an all-encompassing state plan, and the market economy is a market mechanism, that is, the optimal allocation of resources is realized through the market through the competitive interest rate of supply and demand.

The means of regulating the economy are different. The planned economy is mainly an administrative means, and the state directly regulates and controls enterprises, while the market economy is mainly an economic means and a legal means. The state macro-controls the market, and the market guides the enterprise.

The ownership structure is different. The ownership structure of the planned economy is single, all of which are public ownership and focus on fairness; The ownership structure of the market economy is diversified. The coexistence and development of public ownership and other ownership systems focus on efficiency.

China has practiced the development concept of taking public ownership as the mainstay and other economic ownership systems coexisting, followed the road of combining it with the market economy, emphasized fairness while taking into account efficiency, and practiced the principle of distribution according to work, which is in line with China's national conditions and has made great progress.

The market economic system is to realize the allocation of resources on the basis of market regulation.

The planned economic system is to replace market regulation with administrative orders and realize the allocation of resources.