Government Intervention Mechanism To Economy

At the period of institutional restructuring, the development of freedom weakens the planning element and color of powers in economic life inevitably. Only changing the functions of government and remodeling powers of government can realize the necessary freedom of market economy. How to make China government to abide by economic principles on the process of economic intervention, to intervene the economy limitedly and effectively, to increase economic and social benefit, to stabilize the economic order and social order, and to realize true social fairness and justice are the commonly concerned topics in the fields of laws, economics, and politics.From the view of economic law, the government is the direct or indirect management under the law to all public and private enterprises and various industries, and strong power to macro regulation and control by vast social and natural resources on process of public manufacturing. Intervention to economy by governmental power has the characteristics of active and passive uniformity on entity, inducement of intervention means, legitimacy of intervention scope, economic of intervention nature and nonprofit of intervention purpose. Governmental power is subordinate and derivative to the rights of citizens. The share of freedom did not reduce before and after intervention. Freedom didn't transfer to interventionist. It reconstructed the order of economic freedom by intervention. Intervention can only be legal reasons for order reconstruction of freedom, and not be the reason for those who plunder the rights of intervened ones. In economic life, the perfect and ideal market mechanism does not exist because of the active and initiative governmental intervention for the shortcomings of market mechanisms. The government is composed of individuals and it has its own interests to pursue, which makes governmental power be not better than market. It should keep some certain distance and intervene for short of market. During the process of intervention, mandatory behavior on public laws is not the only option for governmental intervention in economy, and even is not the best choice in some cases. The means of intervention are mainly non-mandatory and inducible. Governmental intervention in economy must have legal basis, and any intervention should be in the statutory scope. The aims of intervention to economy by governmental power are to realize national economic functions and coordinated development on economy and society with the object of certain social economic life. It links with the social interests or social and public interests. As an economic management center, government must be committed to the realization, promotion and guarantee of social interests in order to realize its economic functions. Government should not become the obtainer in the new interest relations. Intervention must be for the interests of those who are intervened and not for interventionist, i.e. intervention must go beyond the interests of market. The goals of intervention are justice and fairness, so interventionist can't seek interests. On the basis of comprehensive survey on differences in representative nations, China can obtain much experience to build governmental intervention in economy.From the founding of new China to present , verifies governmental intervention in economy from two stages according to its role, status and functions. By reviewing the history of intervention to economy by governmental power after the founding of new China and analyzing strange phenomenon and its reasons, there are the reasons for government inefficiency, uncertainty on the result of governmental intervention, ultrapower intervention to market entity, local trade barriers, local protection, rent-seeking and corruption are mainly imperfection of market economy, lagged reform of political mechanism, imperfect legal system and backward ideas. Finally, the paper does some empirical analysis on the above theories. Taking the examples of real estate market and stock market, it analyzes the reasonability of governmental intervention to the two markets and shortcomings shown at the course of intervention, proposes to improve solutions to the two markets by governmental intervention, and proves urgency and feasibility of construction on intervention to economy by governmental power from realistic aspect.In order to change the abnormal phenomenon of intervention to economy by governmental power, the author constructs a Chinese positive interaction mechanism. Intervention to economy by governmental power should follow the principle of powers by the rule of law, principle of improving the efficiency, the principle of stable order and the principle of justice. In the course of intervention to economy by governmental power, the government's position should be limited and effective, ruling of laws, democratic, responsible and humanitarian government. At present, Chinese overall political system has not changed. The internal adminstation mechanism of intervention to economy by governmental power should focus on the reconstruction of the framework in central and local governments. That is to build a "re-centralized" system in central government, to adjust the system of the central and local agencies, to establish formal coordinating organization vertically between governments, and to build municipal system. The external controlling mechanism of intervention to economy by governmental power lies in constitutional economic intervention. The government tries to build rules for economic order system in a country and even in a world. As an attempt to build economic order, it must focus on the national fundamental law -- Constitution and constitutional system. Constitution and constitutional system has provided basic framework for a state how to intervene economy. It regulates the basic rights, governmental power and the limitation in the law system. Economic law is a law to authorize power as well as control power. It grants government the right to market regulation and requires it to assume corresponding legal liability. The regulatory function of economic law strictly controls administrative behavior in laws and legal procedures, which are demand of rule of law and development of civilization. The reality shows that stipulation of governmental intervention by Constitution can promote the development of economy.