Glamor Economics

Chapter 86

Chapter 12 Section 4 The Visible Hand is in Action—— Macro-control

Market regulation is not a panacea.Some fields cannot be regulated by the market, and some fields cannot be regulated by the market.Even in areas where market regulation can play a broad role, there are inherent weaknesses and defects in the market, including spontaneity, blindness, and hysteresis.Macro-control is conducive to helping people understand the weaknesses and defects of the market and ensuring the healthy and orderly development of the market economy.

Macro-control means that the state uses plans, regulations, policies and other means to intervene and adjust the economic operation status and economic relations, bring micro-economic activities into the macro-development track of the national economy, and promptly correct the tendency to deviate from macro-targets in economic operation to ensure Sustained, rapid, coordinated and healthy development of the national economy.

Economics believes that the means and functions of macro-control are to specify the goals, tasks, and priorities of economic development through the formulation of plans (economic means); to regulate the behavior of participants in economic activities through the formulation of laws and regulations (legal means); , regulations and other administrative measures (administrative means), direct and rapid adjustment and management of economic activities.Its ultimate purpose is to remedy the failure of the invisible hand in regulating the operation of the micro economy.If the government does not play its role properly and does not follow the laws of the market, it will also have negative consequences.

The main objectives of my country's macroeconomic regulation and control are:

First, promote economic growth.Economic growth is the basis for economic and social development.Sustained and rapid economic growth is the primary condition for realizing the country's long-term strategic goals and improving people's living standards.Therefore, promoting economic growth is the most important goal of macro-control.Promoting economic growth is achieved by adjusting the relationship between total social supply and total social demand.Therefore, in order to promote economic growth, the government must adjust the relationship between total social supply and total social demand to achieve a basic balance.

Second, increase employment.Employment is the foundation of people's livelihood and the basic premise and basic way for the people to improve their lives.The employment situation is related to the vital interests of the people, the overall situation of reform, development and stability, the grand goal of building a well-off society in an all-round way, and the common prosperity of all people.The promotion of full employment is the responsibility of our Government.my country is facing a severe employment situation. On the one hand, the labor supply is huge, and on the other hand, the demand for labor is limited.Therefore, we must persist in implementing long-term strategies and policies to promote employment, implement the macro-control goals of increasing employment, and strictly control the growth of population and labor force.The increase in employment depends on the economic growth rate and the employment elasticity of economic growth.To increase employment, we must first promote sustained and rapid economic growth, which is the basis for increasing employment.At the same time, employment flexibility must be improved.In order to improve employment flexibility, we must actively develop labor-intensive industries, tertiary industries, small and medium-sized enterprises, and non-public enterprises, vigorously promote urbanization, and accelerate the construction of small towns.

Third, stabilize prices.In a market economy, price fluctuations are the form in which prices play a regulating role.But large price fluctuations are not good for economic life.A sharp rise in prices and inflation will stimulate blind investment, repeated construction, one-sided pursuit of quantity expansion, and a decline in economic efficiency; if prices fall and deflation will inhibit investment, production will decline, and unemployment will increase.Under the conditions of a socialist market economy, the prices of most commodities and services are determined by the market, but the government can use economic means such as currency to adjust prices, and when necessary, it can also use certain administrative means (such as stopping random price increases, cracking down on Price gouging) to keep prices basically stable and avoid price fluctuations.

Fourth, maintain balance of international payments.The balance of payments refers to the receipt and payment of money or the transfer of property expressed in money between a country or region and other countries or regions due to various transactions.

The main means of macro-control are:

Legal means refer to the means by which the state regulates economic activities by formulating and applying economic laws and regulations.The economy is regulated mainly through economic legislation and economic justice, which is authoritative and mandatory.

Economic means are measures that the state uses economic policies and plans to influence and regulate economic activities through the adjustment of economic interests.The main methods are: adjusting fiscal policy and monetary policy, formulating and implementing economic development plans and plans.

Administrative means means that the state adopts compulsory administrative orders, instructions, regulations and other measures through administrative agencies to regulate and manage the economy.For example, using industry and commerce, commodity inspection, health quarantine, customs and other departments to prohibit or restrict the production and circulation of certain commodities has the characteristics of directness, authority, free and quick effect.

[links to related words]

Economic development strategy refers to the overall, long-term, and fundamental general conception of economic development. Within a certain period of time, the country's basic thoughts on national economic development and the overall planning and policies implemented for this purpose.

Due to the different research angles, there is no unified definition in the world. There are mainly the following types: one is various specific policies directed at industries, that is, the sum of all government policies related to industries.The second is a policy to make up for market deficiencies.That is, a series of remedial policies adopted by the government when market regulation is hindered.

(End of this chapter)