Market economy what Is a Market Economy?

Socialist market economy 
Following the 1978 reforms, China developed what it calls a socialist market economy in which most of the economy is under 
state ownership, with the state enterprises organized as joint-stock companies with various government agencies owning 
controlling shares through a shareholder system. Prices are set by a largely free-price system and the state-owned enterprises are 
not subjected to micromanagement by a government planning agency. A similar system called socialist-oriented market economy 
has emerged in Vietnam following the Đổi Mới reforms in 1986. This system is frequently characterized as state capitalism 
instead of market socialism because there is no meaningful degree of employee self-management in firms, because the state 
enterprises retain their profits instead of distributing them to the workforce or government and because many function as de facto 
private enterprises. The profits neither finance a social dividend to benefit the population at large, nor do they accrue to their 
employees. In China, this economic model is presented as a preliminary stage of socialism to explain the dominance of 
capitalistic management practices and forms of enterprise organization in both the state and non-state sectors.
In religion 
A wide range of philosophers and theologians have linked market economies to concepts from monotheistic religions. Michael 
Novak described capitalism as being closely related to Catholicism, but Max Weber drew a connection between capitalism and 

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Protestantism. The economist Jeffrey Sachs has stated that his work was inspired by the healing characteristics of Judaism. Chief 
Rabbi Lord Sacks of the United Synagogue draws a correlation between modern capitalism and the Jewish image of the Golden 
Calf.
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Christianity 
In the Christian faith, the liberation theology movement advocated involving the church in labor market capitalism. Many priests 
and nuns integrated themselves into labor organizations while others moved into the slums to live among the poor. The Holy 
Trinity was interpreted as a call for social equality and the elimination of poverty. However, the Pope was highly active in his 
criticism of liberation theology. He was particularly concerned about the increased fusion between Christianity and Marxism. He 
closed Catholic institutions that taught liberation theology and dismissed some of its activists from the church.
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