[420] Correspondingly Khrushchev and Brezhnev’s policy (with N. Baybakov running the State Planning Committee of the USSR) of «production equipment instead of production of consumptive use» was a distortion of Stalin’s course by means of running to an absurd extreme. What is more the production equipment was out-of-date and imperfect due to bureaucratization of science, research and development, the State Planning Committee of the USSR and the republics.

[421] It concerns both: Capitalist and Socialist economy with the only difference. The difference is that in Capitalist economy speculative sector is legal, while in Socialist economy it is to be suppressed legally and socially.

[422] For a detailed study see the USSR IP’s «A Brief Course…», «The Dead Water» ( in editions of 1998 and succeeding years). In these works the theory of multi-industry system of production and consumption unfolds as well as general rules of organization of the long-term planning system conditioned by population study.

[423] Nikolai Baibakov (b. 1911) was the head of the committee for forward planning of the Council of Ministers from 1955 to 1957. From 1957 to 1958 he worked as the head of the State Planning Committee of the RSFSR. From 1965 till his retirement during perestroika he was the vice chairman of the Council of Ministers and the head of the State Planning Committee of the USSR.

We know nothing about N. Baibakov’s grievances against economics and against outstanding economists or muddlers personally on the ground of his dissatisfaction with their «scientifically valid» planning methods. We agree that it was impossible to put Stalin’s demands into practice on the basis of the existing methods of planning and the way control used to be organized in the USSR. It was impossible not because of real impracticability, but because of the unfounded methods of planning in operation. (You can go back and see the nonsense of the book “The Planned Equilibrium: installation, maintenance, efficiency” by V. Belkin and V. Ivanter, quoted in «Digression 7».) It was also impossible because of the management bureaucratization. It was impossible to put Stalin’s demands into practice, as legitimate scientists were incompetent professionally and intellectually.

Initiative in developing methods of planning was not encouraged or supported by bureaucrats of the State Planning Committee and the Central Committee. Even the initiative of such prominent figures as the world chess champion and Doctor of Science Mikhail Botvinnick. Those with no titles were also ignored. If they dared to insist they were suppressed, expelled from the Communist Party, charged with being graphorrhea addict and with anti-Soviet work, etc.

[424] Once again we want to remind you that in spite of the bureaucratic and propagandistic custom of the USSR a NORMAL plan for the state and society had the following characteristics:

It is not a high hurdle that the multi-industry system of production and consumption had to clear at the breaking point;

It is an attainable level with a control index that the system of production and consumption had to maintain and would better exceed. It must be guaranteed by the freedom of scientific and technical, and entrepreneur management creative work.

In other words the plan must be guaranteed not to be tense. In process of accomplishing it organization of work must guarantee exceeding production volume if it is needed and forestalling schedule deadline if it is admissible. It must also guarantee development, mastery of technique and production of new products of public utility that initially have not been planned.

[425] If the state is the owner of the financing system then it is mediately the owner of everything that is taken stock of throughout the territory regardless of the patterns of ownership.

Therefore from the State Planning Committee’s viewpoint (as well as that of Ministry of economy) products exchange as a united system of production and distribution accompanied by monetary circulation is built on the basis of interior cost values of the system. They include expenditures conditioned financially, which are characteristic of the system management and stocktaking on different levels. They include: workshop cost value, the cost value of the enterprise workshop cost value + overhead expenses; branch or regional cost value including dues and donations constituents; all national economy cost value = internal prices of production; foreign market prices as one of the features of external economic potential of a super concern-state.

This approach to the description of economic processes secures the unity of form and content on every level: from an individual to super concerns and global economy of the humanity. The approach comes from the principle of integrity of multi-industry system of production and consumption. This way of understanding economic processes corresponds with axioms of economics (Digression 2) and with main rules of political economy of an industrial civilization (Digression 6). If it dominates in society them micro level management of national economy and macro level management can be brought to a conflict only by evil design and society’s inactivity. Those were things not to be found during the period of Stalin’s Bolshevism.

If the owner of the financing system is not the state (legally it is manifested by the independence of the Central Bank from the state), the financing system is the legal property of international mafia. Mafia is also the owner of everything that is taken stock of throughout the territory regardless of the patterns of ownership.

[426]It underlies the possibility of a planned state cut in prices.

[427] Except for goods and services of daily needs. Their range is constantly changing, that is why the production can be mass, oriented towards not an individual order but the revealed statistics of needs.

[428] For more information about virtual structures and management on their basis see the USSR IP’s work “The Sufficiently common theory of control”. Here we shall be brief. Management structures can be permanent and liven up if their activity is necessary. Besides they can appear if their activity is necessary and liquidate themselves by the end of their activity and appear again when new needs come to light. This regime of structure functioning is termed «management on the basis of virtual structures».

Basically if elements composing a super system (i.e. elements are systems) are ripe for management on the basis of virtual structures the super system functions more effectively. This accounts for releasing the elements, which could be employed for inactive full-scale permanent structures. Besides under certain circumstances and due to their own features full-scale permanent structures become parasite if they try to keep their quality under changed conditions.

[429] As a result of their «reforms» nuclear-powered icebreakers designed to pilot a convoy of watercrafts over the Arctic Ocean route without budgetary financing of «northern delivery» waste their technological lifespan for cruises. They take western tourists fed up with exotics to the North Pole and «earn» about $30,000 per every tourist to work at piloting watercrafts over the Arctic Ocean route at the end of summer and in autumn.

It is one of the examples of imbecility disguising sabotage impartially being an act of sabotage. It is beyond Y. Gaidar’s intellect to understand and to put the principle of the superior profitability of national economy as a united system into practice. The same concerns supporters of pro-bourgeois reforms in Russia.