On the defects of market mechanism in allocating social resources.

1, the short board of market allocation resources.

First, in modern social and economic life, there are areas where the market cannot be adjusted. The market cannot solve the supply problem of public goods such as national defense, public security and fire protection. Guns, ammunition, drugs, obscene audio-visual products and other articles that seriously endanger citizens' physical and mental health, corrupt social atmosphere and affect social stability cannot be regulated by the market.

Second, market regulation has inherent shortcomings such as spontaneity, blindness and lag.

The main manifestations and consequences of spontaneity: under the spontaneous regulation of the law of value, market subjects spontaneously pursue interests, ignoring the interests of others for their own interests, which may lead to unfair competition and profit-seeking behavior that violates morality and law.

The main manifestations and consequences of blindness: market players make blind decisions, rushing headlong into action or rushing headlong into action, which leads to imbalance between supply and demand, and finally leads to economic fluctuations, waste of resources and widening income distribution gap.

The main manifestations and consequences of lag: market regulation is ex post facto regulation, and there is a time lag in regulation, which can not transmit information in time, thus leading to imbalance between supply and demand, economic fluctuations and waste of resources.

Therefore, if it is only regulated by the market, it will lead to inefficient resource allocation and waste of resources; Social and economic instability, economic fluctuation and chaos; Unfair income distribution, widening income gap and even serious polarization.

I answered the advantages, right?

2. Advantages of market allocation of resources.

Modern social market plays a fundamental role in resource allocation, because it has advantages that other means do not have.

First, the market can reflect the changes of supply and demand in a timely, accurate and flexible manner through price fluctuations, transmit supply and demand information, and realize resource allocation. In order to realize the rational allocation of resources, the market must be fully competitive; Otherwise, the price signal will be distorted. Therefore, we can't generally say that the market is an invisible hand. The accurate statement should be: the competitive market is an invisible hand.

Second, in the face of market competition, commodity producers and operators actively adjust their production and business activities under the influence of interest levers, thus promoting the progress of science and technology and management, promoting the improvement of labor productivity and the effective use of resources.

Under the condition of market economy, enterprises operate independently and are responsible for their own profits and losses. Enterprises with good production conditions, advanced technology, scientific management, high labor productivity and low production costs have greater profits. Therefore, through the survival of the fittest in market competition, capital, technology and labor will inevitably be concentrated in well-managed and economically efficient enterprises, thus realizing the optimization of resource allocation. In this way, commodity producers and operators will automatically adopt advanced science and technology, improve management and improve labor productivity from their own interests. It should be reminded that the prerequisite for market competition to achieve survival of the fittest is that the information of both parties in the market transaction should be symmetrical; Otherwise, the result of competition may be survival of the fittest.