Abstract:

What forces regulate the allocation of social resources? Is there a third force beyond the regulatory power of the market and the state (government)? In addressing this important theoretical and practical issue, our research confirms from the two dimensions of history and reality that the social humanities are the third major force regulating resource allocation in our historical stage of a commodity economy. This article analyzes the dialectical relationship between the “invisible hand” of the market, the “tangible hand” of the state (government), and the “third hand” of social humanities in the process of resource allocation. Although each is independent and isolated from the others, they still support, influence, and permeate each other. This article also analyzes and demonstrates the scientific understanding and grasp of the functional role of social humanities in resource allocation. As an addition to theory, this article will make our understanding of the laws of social and economic operation more comprehensive and profound. In practice, this contribution provides greater theoretical support for the formulation and implementation of action strategies by party committees, governments, and market entities at all levels.

Key words: resource allocation, social humanities, “three hands”