Section 2: The capitalist model of resource allocation

The word capitalism has a pejorative connotation at a given time, so countries that meet the conditions of capitalism are not willing to call themselves capitalist; But strangely enough, some of the characteristics in its definition are almost ubiquitous in today's world; The reason for this is determined by the objective degree of development; The word capitalism has no pejorative or positive connotation; The essence of the capitalist distribution model is a mechanism that uses capital as a means to operate the market, that is, the market mechanism; And this mechanism is advanced in its historical period; Let's analyze it in detail;

As we said in the previous section, the allocation of resources in human society is mainly influenced by two factors: people and institutions; The level of human development determines the allocation mechanism of its resources, and its resource allocation mechanism promotes human development; The society we live in today is a structure with the type of industrial personnel as the main body, which is determined by the objective level of human development, which is destined to allocate its resources in a way that is distributed by the market mechanism; Based on this, we can see that the structure with the type of industrial personnel as the main body is a necessary condition for the existence of its market mechanism. This market mechanism and the current level of human development determine our mainstream social form, that is, only a small number of industrial owners can directly participate in the division of labor in the market, and industrial personnel indirectly participate in the market division of labor through industrial owners. This system is essentially to ensure the law of its distribution of resources; The owner directly allocates resources through the market, and the industry personnel indirectly obtains resources through the owner; The relationship can be expressed as:

Resources-> (market division of labor-> industry owners) ......-> market-> industry personnel;

What should be explained here is that the division of labor in the market and the market itself are not factors that say that its "market mechanism" is good or bad;

We have said that the analysis of a mechanism should be considered from three aspects: its judgment of value, the degree of perfection of the value system, and the reflection of the operation of the mechanism on the true value of things. In the market mechanism, the judgment of value is determined by price; That is, the price of a thing shows its value, which has a problem, that is, the logical relationship between value and price, if the value of a thing is generated after its price, then we can say that the value of its thing is judged by the price; But if the value of a thing exists first with the price, we cannot say that its price determines the value, then the price is only an abstract reflection of value; This is why we say that the essence of Western economics does not recognize the existence of value, and the judgment of value in the entire system is based on human subjectivity. This criterion of value is obviously inaccurate; Let's analyze its value system, that is, the value of things is converted into prices through the market mechanism, and finally the distribution of its resources is realized; As we said above, there is no clear regulation and definition of value in its market mechanism, and only the price of things is described and analyzed in its system, so this kind of value-to-price conversion will have the risk of being far away from the real value of things and is uncontrollable; This situation is also common in its specific operation, let's take a specific example, look at the price change of American houses from 1890 to 2006, based on the house that sold for $100,000 in 1890, Before 2000, the lowest price was $65,000 in 1920, and the highest price was $125,000 in 1990, if we can still accept this rollercoaster change because of time, then the next 2000 to 2006, the price rose from $110,000 to $203,000 in just a few years, can you accept it, well, maybe the one-way rise makes us still try to understand, then in the next two years, the price has fallen back to $130,000 quickly around 2008, at this time we will still have hope for the value reflected in this price mechanism, I think normal people can't do it； If prices in the market mechanism reflect the true value of things, then I prefer to believe what they say is "worthless";

However, it should be noted here that although the distribution mechanism of capitalism itself is inefficient, it is characterized by low requirements for the level of human development, and the incentive effect on people is relatively easy to realize, which is of great significance to the degree of development of human beings today, and its characteristics of the distribution of resources can be simply summarized into two points: first, the incentives for people are easy to realize, so that the speed of human development is relatively fast; Second, the utilization rate of resources is low, and the waste of resources is large, which is inevitably determined by its distribution mechanism, that is, the market mechanism;