What is the basic function of the socialist market economy?

The basic functions of socialist market economy are: positive: first, market economy is an effective form of rational allocation of resources; Second, the market economy is an automatic mechanism to regulate supply and demand; Third, the market economy is the objective standard of value evaluation; Market economy is the compulsory force for enterprises to survive the fittest; Shortcomings and limitations: First, the blindness and spontaneity of market economy may cause waste of resource allocation and economic crisis; The result of market economy competition law, on the one hand, promotes the progress and development of economy and society, on the other hand, it will also lead to the differentiation of commodity producers, the widening income gap of residents and the widening gap of regional economic development level. Third, the market economy only plays a limited or even no regulatory role in the production and operation of some products with less elasticity of supply and demand change and products limited by scarce resources. At the same time, it has limited or even no regulating effect on the production and operation of some products with small economic benefits and great social benefits and the development of departments.

A1993165438+10, the Third Plenary Session of the 14th CPC Central Committee adopted the Decision on Several Issues Concerning the Establishment of a Socialist Market Economic System, which pointed out: around the reform goal of establishing a socialist market economic system, we should adhere to the policy of public ownership as the mainstay and the common development of various economic sectors, further transform the operating mechanism of state-owned enterprises, and establish. Establish a unified and open national market system, realize the close integration of urban and rural markets, connect the domestic market with the international market, and promote the optimal allocation of resources; Transform the government's function of managing economy, establish a perfect macro-control system based on indirect means to ensure the healthy operation of the national economy; Establish an income distribution system with distribution according to work as the main body, giving priority to efficiency and giving consideration to fairness, and encourage some people in some areas to get rich first and take the road of * * * to get rich; Establish a multi-level social security system to provide urban and rural residents with social security suitable for China's national conditions and promote economic development and social stability. These main aspects are interrelated and mutually restricted, which constitute the basic framework of the socialist market economic system.