The following proportions are meant under microeconomic proportions. They are the ratios of full capacities of the different industries, which constitute this multiindustrial production and consumption system, and the ratios of these industries’ net outputs to their full (gross) capacities, as well as the proportions of the population’s professionalism and employment.

A structural reconstruction of macroeconomy is an alteration of these proportions and the absolute values of the production capacities in the entire lot of industries. A structural reconstruction can proceed on the basis of a plan having a clearly set out objective. It also can proceed under the pressure of circumstances, so to say, spontaneously. Though when looking into the matter more deeply one might find that the pressure of circumstances induced by the social and economic «element» turns out to be a process planned and controlled by backstage groups. This option has been predominant during the last few centuries.

Let us now turn from the issue of production to the issue of how products and services are consumed in the society. Consumption turns out to be characterized by its own proportions, which are determined by the two following factors. On the one hand, they are determined by the way needs emerge as such within the society (i.e. regardless of any limitations in satisfying them), and on the other hand, by the limitations imposed on how fully those needs may be satisfied by the system of distributing[112] manufactured products.

All the needs of people and social institutions fall into two cat e gories:

biologically allowable needs conditional on the demography. They comply with the healthy life-style maintained in succession of generations by the population and biocenoses of the regions where the products intended for satisfying those needs are produced and consumed. These needs are determined by the biological nature of the Homo Sapiens species, by the population’s cultural background, age and sexual structure;

degraded parasitic needs. Satisfying them is directly or indirectly detrimental to those engaged in production, to consumers, contemporaries and descendants. It also disrupts the biocenoses located in the regions where the products are manufactured and consumed. These needs are primarily determined by perverted and defective morals and are maintained through those perversion and defects reflecting in cultural tradition and succession of generations.

Though some products may change one category for the another depending on the standards of production and consumption, most products of the modern civilization are unambiguously placed into one of the categories. The category is determined objectively due to the possibility of revealing the cause-effect relations between the product’s kind and the consequences its production and consumption have.[113] Only incorrect attribution of a certain product to one of the described categories is subjective (including mistakes caused by incorrectly determined standards of production and consumption). Yet life will make us face the consequences of those errors exactly because all needs and products are objectively divided into two mentioned categories.

Satisfying needs is the aim not only of production, but also of distribution of products in the society. We must elaborate on this phrase or it will be taken for an obvious and true commonplace, yet is essentially devoid of meaning due to its abstract nature.

If the society is in any way engaged in multiindustrial production and is in any way distributing products to be consumed by physical and juridical persons who need them (both in the production and consumption spheres) it follows that the means of assembling[114] the multitude of microeconomy into the multiindustrial production and consumption system are objectively set (tuned) to fulfilling certain definite goals — namely, the needs generated by the members of society (individually and collectively). It follows that:

«The market mechanism» is nothing but words (whose meaning is absent in some minds[115]) which designate a more or less efficient algorithms of the means of assembling the multitude of microeconomy into the systemic integrity of macroeconomy.

Therefore, the advocates of market self-regulation should cast aside their prejudice and learn that the «market mechanism» by itself cannot and does not perform the task of defining targets regarding production and distribution of products in the society. What it does is adjusting production and consumption to the targets that have already been formed and which the market mechanism turned out to be adjusted to. And such adjustment occurs regardless of whether the society (or some of its members) understands the nature and methods of adjusting the «market mechanism» to certain definite[116] goals or not.

In any process of control (or self-control) that is initially intended for achieving a certain number of defined aims those aims have different priority[117] and form a hierarchy where the most important aim comes first and the aim that could be rejected (declined, turned down) if the complete number of aims cannot be reached comes last. In this hierarchy termed as aims vector individual and group aims form a sequence contrary to the sequence in which they would be forcedly rejected under pressure of circumstances. One of the circumstances making it impossible to achieve the complete number of chosen (announced, stated) aims is their being mutually exclusive.[118]

It is characteristic of the crowd-“elitist” society that it generates a number of mutually exclusive aims. This leads to the market mechanism’s being adjusted to certain definite ranges of production and distribution in social groups according to the aims that are placed at the top of the hierarchy of needs. The crowd-“elitist” society has an inherent systemic property — its ruling “elite” is responsible for a larger part of the degraded parasitic range of needs[119]. Among other ways of abusing their power within society the “elite” make themselves superior to the rest of the society in paying capacity.[120] Because of this the «market mechanism» is objectively adjusted to satisfying the needs of the “elite” in the first place by means of income and savings distribution. As the degraded parasitic constituent prevails among those needs the demographically grounded needs of the rest of society (the majority of population) are satisfied due to such adjustment of market mechanism upon the residual principle[121]. Besides it is the “elite”’s way to «diminish» the rest of society in order to strengthen their “elitist” social position. To this end it encourages the common people to adhere to the degraded parasitic range of needs («it is easier to govern people who drink heavily» etc.)[122] This way the majority of people and the society on the whole have even a smaller chance of satisfying the range of demographically grounded needs.

The market mechanism regulates the distribution of products within production sphere and beyond according to what is termed by political economy as «the law of value». This law says that average prices of commodities express the average labor inputs for their production in the society. Yet since in many activities «labor inputs» cannot be measured directly[123] the «law of value» turns out to be inconsistent in terms of metrology due to grounding price formation on «labor inputs» whose quantity it is impossible to measure. Nevertheless, if one accepts the fact that market prices exist for an objective reality, price ratios of different products (intermediate, auxiliary, final) define the yield and profitability of their manufacturing under the technologies and business organization accepted by the manufacturers.