The Economic Analysis On"Government Offside"in China

The relationship between government and market is a both ancient and modern economicsproposition. From mercantilist emerged in the15th century, the discussion of relationship betweengovernment and market and the government’s economic function, accompanied with the economicdevelopment process of human society. The capitalist countries discuss government’s interventionof market mechanism from market failure theory; scholars in our country’s understanding of thisproblem changed from denying the existence of market in socialist system to put forward the theoryof market and plan are both resource allocation methods. Socialist market economy system of ourcountry transformed from highly centralized planned economic system thirty-two years ago, it is notperfect now. Therefore "government offside" phenomenon of our country is relatively serious.The main function of theory is to explain and guide practice. This article through analysis of"government offside "’s cause, form of expression, cost and benefit pointed out that "thegovernment offside" has great harm to China’s economy. Although "government offside" can ease"labor pain" in the improving of China’s socialist market economy system in short-term, it virtuallyhindered the pace of the improve of the socialist market economy system, and can even lead to theappearance of more complex problems. From the height of perfecting our country’s socialist marketeconomy system, the author thinks that as a central of society and macro economic, the governmentmust advance China’s market reform from the changing of our administration concept. We shouldbring service idea into administration management, change the idea of "official" equals to "tube",fully respect market entity. Change from direct micro management to indirect macro management.Besides we must improve the point of economy management, don’t intervene specific economicaffairs especially products, don’t influence supply and demand with "visible hand". The charactersof government in a market economy are system supplier, competition manager and coordinator.