At 2:00 p.m. on Feb. 27, 2019, Prof. Gong Gang made the speech “Can Market Effectively Allocate Resources?” at the 70th Session of Chen Daisun Theoretical Economics Lecture. Associate Prof. Zhao Zhun chaired this session, and teachers and students from the Institute of Economics of the School of Social Sciences and the School of Marxism attended the speech enthusiastically.
Centering on the theme “Can Market Effectively Allocate Resources?”, and on the basis of demonstrating historical development of the “Effective Allocation View”, criticizing Arrow-Debreu Economics, analyzing market failure in allocating resources and giving an exposition of the essence of the “Invisible Hand”, Prof. Gong Gang argued that market, as a resource allocation mechanism, cannot effectively allocate resources, but it doesn’t mean there is no necessity of existence of market economy —— planned economy lacks incentive mechanism, while market economy, as a high-powered incentive, sets people’s desire free; under the planned economy, people are reduced to tools for achieving the designated goals and enterprises to units for completing the plans made, but market economy arouses the enthusiasm of people and enterprises for participating in economic activities. Prof. Gong Gang, with strong logic and stringent argument and by combining relevant history, demonstrated that many views to which we have given tacit consent, for example, can market effectively allocate resources and the “Invisible Hand”, actually emphasize roles of market, and drew a disruptive conclusion, deepening the audiences’ recognition about whether market can effectively allocate resources. Prof. Gong Gang offered a speech profound in simple terms and thought-provoking.
After the speech, students were eager to address questions, of which Prof. Gong Gang gave an exposition respectively, fueling the atmosphere on the spot to another high tide. Teacher Li Bangxi and Teacher Zhao Zhun gave their summary of Prof. Gong Gang’s speech, and presented to Prof. Gong Gang the souvenir sign of the Chen Daisun Theoretical Economics Lecture as a gift. Later, all teachers and students on the spot had a group picture taken as a souvenir.
(Words by Yang Qingmei; pictures by Li Bangxi, Liu Yuan and Zhao Zhun)
