Why can􀆳t the Private Economy Retire? ———Argument for the Longevity of the Private Economy

Abstract

Long-term economic growth requires the long-term presence of the private economy. For a considerable period of time in the future development of productive forces, the public ownership economy is not suitable for the public ownership economy to exist alone on a wide scale for a long period of time, and it needs a large number of private economies to form. a long-term competitive and cooperative relationship with it based on the neutrality of ownership. Because the long-term existence of the public ownership economy alone is not the only driving force for sustained high-quality economic growth. However, there are still differences in academic circles on whether the private economy should exist in the long term. This paper traces the origin of the argument of "eliminating private ownership", and clarifies that the theory of eliminating private ownership relies on Marx's assertion of the four major trends of private ownership. This paper points out one by one that each of the four major trends is inconsistent with today's economic facts, and there is no internal cause that will lead to the demise of the private economy, as described by Marx. Private ownership and social equality and narrowing the gap between the rich and the poor can co-exist. On the contrary, the public ownership economy, which exists on its own, can’t develop with high quality for a long time due to human self-interest, cognitive limitations and scarcity of resources. Critics of private ownership argue that private ownership leads to polarization of the rich and the poor, uncontrolled expansion of capital and many other problems. Even if there is a social gap between the rich and the poor, it is not necessary to solve the problem by eliminating the private economy, but can be alleviated through other systems and policies.