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How to understand the operating principle of market economy
There are two points to understand the operation principle of market economy:

First of all, we must understand the process of trade and the formation of specialized production.

Second, how did he become a market economy system?

The essence of trade is exchange, and the process is: from self-sufficient mode of production to complementarity and then to competitiveness.

Complementarity means that I can not only use it myself, but also exchange it with my mood, but I don't have to pay attention to it. I'm dispensable.

Competitiveness means that when people's needs overlap, they can't get what they want to exchange, so they must think about innovation. And everyone has it, so why did others choose me? Others are not stupid.

Extended data:

First, the definition of market economy:

The so-called market economy should exist in democratic countries. Because democratic countries have no right to interfere in the operation of market economy, its market operation mode will never be regulated by government behavior, otherwise it will be a false market economy, an improved market economy controlled by power, and an incomplete market economy controlled by vested interests.

Second, the essential characteristics of the market economy:

The essential feature of market economy is that commodity production is the main driving force to promote social and economic operation. Commodities are mainly used to exchange products, including both use value and exchange value. The main purpose of commodity production is to obtain the exchange value of products with the help of their use value. The government's behavior is to create conditions for giving full play to the regulatory role of the market mechanism and make it play a fundamental role in resource allocation. The law of value is the basic law of commodity production and commodity exchange, which fundamentally determines the operating law of market economy.

1, the opening of market economy, the essence is to solve the problem of insufficient production and materials.

2. However, when the supply of market economy exceeds the demand, there will be the practice of opening the market, which is to stimulate people's evil desires, such as taking advantage of people's laziness, greed, lust and seeking excitement. Rich people crave longevity and health, women crave youth, and the middle class is afraid of slipping.

3. Financial capital is profit-oriented, and it will definitely choose profit between risk and profit and pass on risk. Therefore, the ultimate outlook of market economy is not good.