(Discrimination) Market economy is capitalism and planned economy is socialism.

Planned economy is an economic model that arranges production and distributes products in a unified way. Market economy is an economic way in which producers arrange production and exchange products among producers. These two concepts can be simply understood as: planned economy without commodity exchange, and market economy with commodity exchange.

Under the planned economy, what to produce and how much to produce are arranged by a certain department of society according to the needs of society and people, or by a certain department of enterprises according to market demand. After production, the distribution of products is also uniform. There are three ways of distribution: distribution according to work, distribution according to need and distribution according to capital.

For example, an American company that produces axes decided to produce 65,438+00,000 axes after market research. Then, how many blanks, axes and axes to be produced are arranged by the department in charge of production in each workshop, which is to plan according to market demand and production demand. When the distribution is completed after production or sales, it is assumed that the total selling price of 654.38+00000 axis is 50000 yuan, the total cost of raw materials is 654.38+00000 yuan, and the capitalist leaves 20000 yuan for 30000 workers, so this is equivalent to the distribution of products. The 4000 axes left by capitalists or shareholders are distributed according to capital, and the 6000 axes given to workers are distributed according to work, that is, according to the achievements of workers. Everyone has several axes.

Compared with the market economy, the planned economy came into being much earlier. Don't say that since there are people on the earth, we can say that since there are animals on the earth, there has been a planned economy. For example, ant colony is a planned economy, and voles have to plan how much food they must store in winter. For the newborn primitive people, everyone's production is a planned economy. Later, after the emergence of families and enterprises, families and enterprises were also planned economies. So the planned economy is not new.

But the planned economy we are pursuing now refers to the planned economy within a country or around the world, that is, the production of a country or around the world is arranged by one department, which is unprecedented (only exists in primitive capitalism), so such a planned economy is a new thing.

When a country implements a completely planned economy, there will be no commodity exchange in this country (note: this means that there is no commodity exchange within this country, and it is not excluded to exchange with foreign countries. If the planned economy was implemented all over the world, there would be no commodity exchange among countries in the world. In fact, the country has been cancelled at this time. At this time, the production in this country will be arranged by the competent production department according to the living needs of the country and the people, and then the products will be distributed to consumers in a unified way. For example, how many people are arranged to produce how many weapons, how many people are arranged to produce how much food, how many people are arranged to produce how many medicines, how many people are arranged to produce how many clothes, how many houses, how many hospitals and how many schools are arranged to build. After production, weapons are distributed to the army, food, clothes and housing are distributed to the people, medicines are distributed to patients, and teaching materials and schools are distributed to students. At this time, there are only distribution according to work and distribution according to need, and there is no distribution according to capital.

After a country implements a planned economy, although there is no internal commodity exchange, it does not mean that there is no external commodity exchange in this country, so this country may also produce some commodities for exchange with foreign countries. Therefore, it is not necessary for planned economy countries not to produce goods. The key is to see who to exchange with, whether it is domestic exchange or foreign exchange.

Although there is no commodity exchange in planned economy countries, there is not necessarily no currency, and money is not necessarily the medium of commodity exchange. Therefore, a planned economy country can have money, and it cannot be considered that there is no planned economy without money. In planned economy countries, money is the medium of product distribution, not the medium of commodity exchange, which is the essential difference between this currency and that currency. As we all know, when distributing products, you can directly distribute the physical objects, or you can not directly distribute the physical objects. Instead, you can give everyone a receipt. Here, money is equivalent to a receipt. When distributing large commodities such as houses, you can distribute them directly without money, but for small commodities with needles and wires, it is more troublesome to distribute them directly, so it is more convenient to distribute money. Therefore, in the planned economy countries, as long as it does not reach the level of complete distribution according to needs, it is inseparable from money.

Therefore, to judge whether a country is a planned economy, we should not look at whether the country has commodity production or currency, but whether the country has commodity exchange. There is something, and there is nothing.

Say an extreme situation. If there are 654.38 billion families in a country, 99.999999 families are all merged into public ownership, and only one family is unwilling to merge and go it alone, then this family will exchange goods with that public ownership unit. At this time, although there was no commodity exchange within the 90 million families, the whole family was a planned economy and that family was also a planned economy, strictly speaking, the whole country was not a planned economy, but a market economy. However, at this time, because there is very little commodity exchange (a family can exchange very little), its share in the national economy is very small and can be ignored, so it can also be called planned economy.

So, what conditions does a country need to implement a planned economy? As you can imagine, a private enterprise will not obey the arrangement of external departments, and its products will not be distributed to all people. Therefore, if all enterprises obey the arrangement of the state and their products can be directly distributed to all the people, they must be owned by the whole people, so public ownership is a necessary and sufficient condition for the implementation of the planned economy.

Here is another extreme situation to help you understand the planned economy. When all enterprises in a country, including agriculture, all land, all resources and all industries, are merged by a capitalist, then there is no commodity exchange in this country at this time. At this time, all people, including the president and the army, were workers of this capitalist. All production was arranged by this capitalist in a unified way, and the distribution of products was of course distributed by this capitalist, so this country is also a planned economy. At this time, all enterprises do not pay attention to profits, and there is no tax in this country. At this time, when distributing products, capitalists should of course leave a very sufficient amount for themselves, and then distribute the rest to their own workers. Naturally, his arrangement for production is to first consider production for his own needs, and then consider appropriate production for the needs of others. At the same time, he may also arrange to produce a batch of goods for exchange with foreign countries. Of course, the purpose of this exchange is for his own and domestic needs.

At this time, some people may ask: "You said above that' public ownership is a necessary and sufficient condition for a planned economy', but this example also said that when all enterprises in a country are owned by a capitalist, this country is also a planned economy. Is there a contradiction? " No, at this time, all enterprises in the country are actually "publicly owned" by capitalist families, and others are outsiders. I don't want to explain this any more. It doesn't matter much if someone doesn't understand this explanation, because the above situation is an extremely impossible situation after all.

Knowing what a planned economy is, let's make a clear question. We usually call the period before the reform as the planned economy period, but this is not strict, just relative to the capitalist market economy. Because there were many commodity exchanges in China during that period, such as those between agriculture and industry, between enterprises owned by the whole people and collective enterprises, and between collective enterprises, that period could not be called planned economy, but called market economy. At that time, the plan formulated by the state was mainly in enterprises owned by the whole people, and this plan was also restricted by the laws of market economy. For example, suppose the country wants to produce many tractors to mechanize agriculture, but many production teams can't afford it, and this plan won't work; If the state wanted to distribute tractors directly to the production teams, then the production teams were required to hand over grain and other products directly to the state, but the public ownership at that time had not reached this level, and it was still not possible. So the disadvantages of the so-called planned economy we talked about at that time were actually market economy. If sand is mixed into steel, the strength will definitely be greatly reduced, but you can't say that this is the disadvantage of steel, can you?

Although that period was a market economy, it was different from the capitalist market economy. The capitalist market economy takes families or individuals as economic units-enterprises are families or individuals with at most a few shareholders-and maintains this situation unchanged, so the capitalist market economy is static; Besides, capitalist enterprises do not accept state plans, and capitalism has no state production plans (state macro-control and state plans are two different things). In the market economy before the reform, the collective and the whole people were economic units, which were much larger than capitalist economic units, and this economic unit was increasing-the collective was gradually merged into the whole people-so that the market economy was dynamic; Also, a large part of the production in that period was planned by the state.

As you can imagine, if the market economy is implemented in families and enterprises, there will be transactions between husband and wife and children, as well as transactions between various departments within enterprises. Similarly, it is obvious how chaotic a society will be if a market economy is implemented. Finally, although planned economy and market economy are two economic means, or two economic models, they also represent two economic systems respectively. Planned economy represents public ownership and market economy represents private ownership. This is like, pears can only grow on pear trees, and pears can only grow on pear trees; Apples can only grow on apple trees, so pears and apples are not only two kinds of fruits, but also represent two kinds of trees respectively. Pear stands for pear tree and apple stands for apple tree. If you want to eat pears instead of apples, you have to cut down apple trees and plant pear trees.