Western modern market economy and socialist market economy are two concurrent market economies in the modern world.Their commonness lies in the decisive role of market in resources distribution,enterprises as major players, competitiveness and openness, subjection to governmental intervention, and legal constraint.There are three fundamental differences for two systems. First,they have different ownership.Western market economy is based on private ownership while the socialist market economy is combined with basic socialist economic institution. Second,they follow different objective rules.In addition to jointly shared rule of value, of supply and demand, and of competition,the former is also dominated by the rule of surplus value and that of non-governmental production,while the latter follows basic socialist economic rule and that of proportioned development of national economy. Third, the two refer to respective governments of different nature from which a series of differences between two market economies derive.Western modern market economy is blind,periodical and insustainability which results in the wealth polarization.By contrast, socialist market economy is planned, shared and sustainable which leads to common wealth. Therefore, socialist market economy is the most advantageous mode in the world.

Editor: Zhong Yao

Studies On Mao Zedong and Deng Xiaoping Theories.2016.No.11.