During the distribution of the resources in the social production, there are strengths and weaknesses both in the market mechanism and the governmental intervention.The advantages of the market mechanism reflected in the micro-economic balance, the short-term distribution of the resources, the signal transmission of the market, the innovation of technology, the driven of the local interests and many other aspects.But in many fields,it also has weaknesses. Such as the easy deviation of the macro goals, the limits of the regulation fields and the cause of the polarization of rich and poor.In contrast，the advantages of the governmental regulation reflected in the carrying out targets in many fields, such as the macro social development，the mid-gradational balance and the micro regulation.But it also has many problems in governmental preference, policy flexibility and the economic forces. When deepening reform and improving the socialist market, we need to balance the market and the government.The key of this process is that the government needs to regulate and plan systematicly and efficiently when driving the wedge between itself and the new liberalism, who advocates the market omnipotence theory.
|The Function and the Complementation between The Market and The Government
|Published - 2014