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«Wherever commodities and commodity production exist, there the law of value must also exist.
In our country, the sphere of operation of the law of value extends, first of all, to commodity circulation, to the exchange of commodities through purchase and sale, the exchange, chiefly, of articles of personal consumption. Here, in this sphere, the law of value preserves, within certain limits, of course, the function of a regulator.
But the operation of the law of value is not confined to the sphere of commodity circulation. It also extends to production. True, the law of value has no regulating function in our socialist production, but it nevertheless influences production, and this fact ca
Is this a good thing? It is not a bad thing. Under present conditions, it really is not a bad thing, since it trains our business executives to conduct production on rational lines and disciplines them. It is not a bad thing because it teaches our executives to count production magnitudes, to count them accurately, and also to calculate the real things in production precisely, and not to talk nonsense about "approximate figures," spun out of thin air. It is not a bad thing because it teaches our executives to look for, find and utilize hidden reserves latent in production, and not to trample them under foot. It is not a bad thing because it teaches our executives systematically to improve methods of production, to lower production costs, to practise cost accounting, and to make their enterprises pay. It is a good practical school which accelerates the development of our executive perso
The trouble is not that production in our country is influenced by the law of value. The trouble is that our business executives and pla
These fragments show that J.V. Stalin understood that there was no way to escape the objective law of value in economy in the course of building Socialism and Communism. But management and economists’ ignorance prevented from achieving the utmost efficiency of pla
This is not the whole story. If de-bureaucratization had been carried out it would have exposed ill-intentioned bureaucrats and would have enlightened ignorant bureaucrats on the basis of a theory alternative to Marxism. Then market machinery could have been subordinated to the pla
«In the second phase of communist society, the amount of labour expended on the production of goods will be measured not in a roundabout way, not through value and its forms, as is the case under commodity production, but directly and immediately — by the amount of time, the number of hours, expended on the production of goods <if we specify it as the time conditioned by techniques and organization and remember that scientific, technical, organizational and technological advance are held in store of plan stability then everything is right. There appear no unfounded manhours needed to make a scientific discovery>. As to the distribution of labour, its distribution among the branches of production will be regulated not by the law of value, which will have ceased to function by that time, but by the growth of society's demand for goods. It will be a society in which production will be regulated by the requirements of society, and computation of the requirements of society will acquire paramount importance for the pla
If we go into particulars of direct responsiveness of people’s needs and production orientation towards them directly, it suggests the following. There should be created such systems of production and of production management and distribution that secure production of almost everything[427] at a pace that does not cause nuisance for a consumer during the time while his order is being executed.
J.V. Stalin realized this system was an alternative for the market, that could excel the market in efficiency. Naturally he did not wait for Communism to be built to move to this system but started it right away.