The impact of the market system in the economic sphere on economic development

Mondo International Updated on 2024-01-30

The impact of the market system in the economic sphere on economic development

From the concept of whether it is beneficial to human beings or economic development, social systems can be divided into two categories, appropriate social systems and inappropriate social systems. An appropriate social system conforms to human nature, which can enable people to exert greater initiative, stimulate more creativity, and prompt people to work harder to survive. An inappropriate social system runs counter to human nature, makes people hypocritical and shameless, makes people lazy, makes people get by, does not want to make progress, and reduces the efficiency of social operations. The average level of performance of people will vary depending on the social system.

The social system can also be subdivided into the market system in the economic field, the wealth ownership system, the national political system system, the judicial system, the welfare system, etc. Social system factors can comprehensively affect the status quo of the entire society, and can also affect the speed or level of economic development. Social system factors can affect the speed of economic development in many ways, and social system factors are important factors that determine the speed of national economic development. The social system factors mainly affect the economic development speed of the country through the factors of the market system, the property rights system, the national political system, and the judicial system.

There are generally two kinds of market systems, the planned economy and the market economy, and generally speaking, the market economy is far superior to the planned economy. The performance level of enterprises under the conditions of the market economy is much better than that of enterprises under the conditions of the planned economy. The phenomenon of survival of the fittest brought about by the competition brought about by the market economy has greatly helped to improve the average quality of enterprises, and has also improved the average operational efficiency of enterprises. The market economy can make the combination of capital and labor more appropriate, and can make the allocation of capital and labor more effective, because the market economy can fully reflect all kinds of needs.

The factors of the market system have a great impact on the country's economic development, and in the past 100 years, the market economic system has been fully competitive with the planned economic system. At present, the planned economic system has completely failed in the competition and comparison, and the market economic system has triumphed. China is one of the major shifters, and this transformation has brought about China's economic boom in recent decades, which has helped China maintain the world's highest economic growth rate, and now China has become an economic power second only to the United States.

Changes in the market system can change the efficiency of economic operations. When other conditions are equal, gradually moving from a planned economy to a market economy means a gradual increase in the efficiency of economic operation, an increase in the ability to create wealth and an increase in the scale of actual wealth creation, and an increase in the degree of affluence, which is achieved through the gradual increase in the speed of economic development in a short period of time.

In the short term, changes in the market system can affect the speed of economic development and thus the degree of affluence. In a short period of time, we can change the speed of economic development by changing the market system. Changes in the market system can only affect the speed of economic development in a short period of time, and after this period of time, the speed of economic development will no longer be affected by the changes in the market system in the past. It is to continue to maintain the market system after the change, and after a long time, the contribution of the market system to the speed of economic development will be very small, and it will drop to zero. The change of the market system has an obvious short-term impact on the speed of economic development, and the change from a planned economy to a market economy can lead to an increase in the speed of economic development in a short period of time, and conversely, the change from a market economy to a planned economy can lead to a decrease in the speed of economic development or negative economic growth in a short period of time. Sometimes the market system is not changed all at once, sometimes it changes little by little, and it takes a long time for the comprehensive change of the system to take a long time, which means that the impact of the factors changing the market system on the speed of economic development will be relatively long. For example, Vietnam's transition from a planned economy to a market economy is a long-term process, which means that the speed of Vietnam's economic development will be affected by the factors of changes in the market system for a long time.

All else being equal, the market system can have a significant impact on people's affluence. All other things being equal, different market systems correspond to different levels of affluence per capita. With the same resource base and the same level of science and technology, the market economic system can lead to a higher or even double the per capita prosperity of everyone relative to the per capita prosperity under the conditions of the planned economic system.

The above is a relatively ideal reasoning thinking, which does not consider the impact of market institutional factors on the speed of scientific and technological development. If market institutional factors have a significant impact on the speed of scientific and technological development, the above conclusions need to be revised. If the factors of the market system have a significant impact on the speed of development of science and technology, this will lead to changes in the market system, which can not only affect the speed of economic development in the short term, but also affect the speed of economic development in the long term. Market institutional factors should affect the speed of development of science and technology, which means that the market system can affect both the short-term and long-term economic development speed. Relatively speaking, market institutional factors have a greater impact on the short-term economic development rate, and the long-term ability to affect the economic development rate is relatively small.

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