In a pure commodity economy, the economic and social order of the whole society is dominated by non-market principles such as consanguinity, rank and power, and the decisive role of the market is mainly reflected in the small commodity economy. In the capitalist market economy, the decisive role of the market is not only reflected in commodity production and commodity exchange, but also in the allocation of production factors such as capital, labor and natural resources. Not only at the micro level, that is, the market regulates the economic activities of producers and consumers, but also at the macro level, that is, the market regulates all sectors of society and various economic relations; Not only in the economic field, but also at all levels of social life. The decisive role of the market is, in the final analysis, the decisive role of capital, which has become the "shining light" leading the social economy, politics, culture and other fields.

The special laws of capitalist economy, such as surplus value law, capital accumulation law and profit equalization law, have become the general laws of market economy. The basic contradictions of capitalism and their manifestations, such as class opposition, economic crisis and polarization between the rich and the poor, have intensified with the development of capitalism. As the general representative of the bourgeoisie, capitalist countries have to intervene in the economy directly and indirectly to ensure the stability and sustainable development of the economy and safeguard the overall interests of capital. However, due to the fetters of private ownership, the intervention of capitalist countries in the economy has always faced such a fundamental contradiction, that is, if the degree of government intervention is too light, it will be difficult to solve the serious problems inherent in the capitalist market economy, such as unemployment, economic crisis, polarization between the rich and the poor, etc. If the government intervenes too much, it will damage the sacred principle of private ownership.

Facts have proved that the various means used by capitalist countries to solve the crisis can only make these crises reappear in a wider scope, and it is impossible to implement truly effective government intervention in the capitalist market economy based on private ownership. As Marx pointed out long ago: "The crux of bourgeois society lies in the fact that there was no conscious social adjustment of production from the beginning". (Selected Works of Marx and Engels, Volume 4, People's Publishing House, 1995, page 58 1) Any conscious social supervision and adjustment of social production process is said to be an "originality" that infringes the capitalist's property rights, freedom and self-determination.

Different from this, the socialist market economy is based on public ownership, and the socialist government's adjustment to the economy comes not only from the external administrative intervention of the state, but also from the internal requirements of production relations. The production relations of public ownership require that resources must be rationally allocated within the whole society according to the common interests of society, and the contradiction between socialization of production and private ownership of capitalist means of production should be overcome. The consciousness and planning of social development are the essential characteristics and fundamental advantages of the socialist system.

In the public ownership economy of the means of production, all social members are the same owners of the means of production, and the purpose of social production is to satisfy their interests. However, if there is no unified social center, that is, the state as the representative, to make planned adjustments to society to ensure the realization of * * * common interests, and to let economic entities pursuing their own interests exchange and compete with each other spontaneously, not only can the common interests of society not be realized, but also the socialist public ownership will degenerate into group ownership, and finally it will be submerged by the sea of private ownership in Wang Yang. Therefore, the emergence and development of public ownership cannot be completely based on the market, but must rely on collective rationality or social planning as its own form of realization.

Under the condition of socialist market economy, from the microeconomic point of view, both private enterprises and public enterprises should pursue profit maximization and accept the adjustment of market mechanism, that is to say, the market plays a decisive role in resource allocation. However, from the perspective of the whole society, the purpose of production development or resource allocation is not to maximize profits, but to meet the material and cultural needs of the people to the greatest extent, and to realize the all-round development of people and the prosperity of society. To achieve this goal, it is obviously not enough to rely solely on market regulation, because the demand that the market can meet can only be short-term, private and capable of paying, and it cannot be separated from social planning and the government's role in meeting the common and long-term interests of the people.

From a broader perspective, in the socialist market economy, the role of the government also includes the line, principles and policies of the party leading the economy, laws and regulations regulating and regulating the economy, and the guarantee of the rule of law. In particular, it should be emphasized that China's * * * production party is the core of leadership in building the cause of Socialism with Chinese characteristics, and constantly improving the ability to control the socialist market economy is a major task for the party to govern and rejuvenate the country. It is an important condition and fundamental guarantee for the healthy development of the socialist market economy for the Party to take the overall situation into consideration and coordinate the roles of all parties.

Therefore, the fundamental feature of the relationship between the government and the market in the socialist market economy is that the decisive role of the market in the micro-economic field is combined with the leadership of the party and the positive role of the government in social development and macro-economy.