An Explain Of Excess Capacity In The View Of Political Economics

In the central economic work conference in 2016,reducing excess capacity was put in the first place by central government. Excess capacity has become a major problem at the present stage of China’s economy.But there were few people to think about the reason of excess capacity in the perspective of political economics theory.In this paper,from the point of political economics view,by mainly using the method of combination of qualitative analysis and combination of empirical analysis and normative analysis,I made a point that excess capacity is the external manifestation of the inherent defects of the market economy,and the I tried to revert its nature and trace the root cause of excess capacity.It is generally believed that the excess capacity is market of commodity supply and demand of deviation, which makes the use of actual production capacity of less than has been put into production capacity, and to a certain extent and the formation of excess production capacity. Excess capacity is the result of excessive competition, industrial organization, industrial structure is not balanced external performance. And from the theory of political economics perspective, the excess capacity is a concrete manifestation of market failure, is the result of production factor mismatch under the condition of market economy, two kinds of meaning of social necessary labor time:the first kind of meaning of time of socially necessary labor of the mismatch of the factors of production, resulting in deterioration of the industry organization and to represent a large number of excess production capacity of enterprises is still involved in social production as the representation, resulting in excess production capacity of the industry as a whole; the second meaning of social necessary labor time of the mismatch of the factors of production, causing the imbalance of industrial structure, external performance for certain industries "retention" of a large number of factors of production, causing overcapacity. But this is only the phenomenon of excess capacity of the political economy of abstraction, is not the root causes of excess production capacity. By the overproduction crisis theory of analogy and the market economy system analysis, commercial private labour and social labour contradictions is overcapacity of the intrinsic reasons, and the contradiction between production and consumption of the trend of market economy development brings is direct cause that the occurrence of overcapacity.Therefore,to solve the problem of excess capacity,although it is necessary to ease excess capacity in the aspect of demand,but it seems all the more important that the government should play an active role in solving this problem in the aspect of supply.And by making the reasonable and effective industrial organization and industrial structure policy,we should correct the defect of market economy.As a result,we will successfully and fundamentally solve the problem of excess capacity!...