Self - Organization Function Of The Market

Establishing the system of socialist market economy is an ultimate objective for China's economic reform. Therefore, how to improve the aimed economic system and accelerate the reform pace becomes an urgent agenda at present. This dissertation historically and logically discusses the overall functions of the market economy which is defined as a self-organizing system in a society, and the driving force and operational mechanism which push the self-organizing system forward, then the author makes an in-depth analysis of both theories advocated by Adam Smith and Karl Marx from this fresh angle. The author's analyses and viewpoints probably provide a new solution to the above-mentioned question that presses us now.Why do the productive forces of human society happen to develop extraordinarily in the stage of capitalism? Advancing and finding answer to the question is of great importance in the process of forming and developing the system of Marxism. Through understanding and discussing the point, the author discovers that Marxism made a special contribution to the human civilization and the modern science of system. Marxist contribution is conducive for us not only to understand the achievements and practical significance of the modern science of system, but also to more profoundly understand and more conscientiously carry out the system of the socialist market economy.Adam Smith was the first economist who revealed the operational mechanism of the intrinsic contradictions in market economy. He advocated that the laws of market economy should be used to realize the prosperity of a country. He argued that any individuals could promote the interests of whole society while pursuing his own interests. In this context, an individual can make more contribution than when can he intentionally promote the interests of whole society at cost of his own interests. In other words, an individual is closely associated with a society by means of market. Therefore, it is said that it was Smith who revealed the secret formula to develop social productivity. The formula is that different levels of talents and able men are regrouped to form common resources for whole society by means of market so as to develop into a powerful force to productivity. Smith theory provides a good enlightenment to our efforts to build the system of market economy.Basing on Smith's theory, Marx revealed two factors of commodity, the duality of labor, the combination of use value and value in any commodity, and thoroughly expounded the evolution of intrinsic contradictions in market. So, Marx discovers not only the market functions which integrate individuals into a society, but also the roles played by the development of market intrinsic contradictions to emancipate and expand productivity. By studying the new contradictions, which are generated in market but can not be solved by market itself, Marx definitely affirmed the roles of government in handling the new problems. He insisted that the roles of government lies in the following two aspects. Firstly, through keeping the frictions or contradictions of market in order, government may ensure a regular economic growth. This way can be called the approach of macro-economic control now. Secondly, when frictions or conflicts can not be resolved by market itself, it is necessary to emancipate and expand social productivity through revolution, mainly through the revolution of ownership. In the past, we attached more importance to the latter than to the former in some certain historical conditions. Now in our socialist modernization drive, we should propel and ensure a rapid increase of social productivity by establishing and improving the system of the socialist market economy.Basing on the reexamination of the history of the two major theories and combining the practice, the author makes a further exploration of how to make use of the self-organizing mechanism of market to promote and improve the system of the socialist market economy.The power of the intrinsic contradictions in market is not o...