«One often hears that the transition to market mechanism proclaimed there (in the former USSR and Eastern Europe — A.E.) is convincing proof for the market-oriented economy being superior to the centrally planned one. I think it is a mistake... The problem lies in CONNECTING, CO-ORDINATING, COMBINING THE PRINCIPLE OF THE TWO SYSTEMS IN A SINGLE MECHANISM.[132] (put in capitals by A.A.), finding a way of combining market mechanisms and government planning and regulation».

In order to apply the last sentence of the quotation to the global economy of mankind one needs to change it the following way:

To connect, co-ordinate, combine the principles of these two systems in a common algorithms of social self-government, to find a effective method of combining market mechanisms, national and global planning and regulation to the end of providing every person with a chance of living a life a human being is worthy of (deserves).[133]

Planning of economic development is performed after interindustry proportions and links are discovered, this has been mentioned before. Because it requires to develop productive capacities in compliance with pre-set figures of final product output in each of the industries (in other words it requires having pre-defined objectives and is impossible without the process of setting targets) theoretic and practical planning and control on a planned basis at the very start face the problem of determining needs and the consequences of their satisfaction. In the course of time as one gets a richer experience one inevitable comes to an understanding that all of the needs society has must be divided into demographically grounded ones and degraded parasitic ones.

The needs, which have been discovered and included in the plan, must be divided between the two classes every time a new project plan is being drawn for the upcoming period. The way this issue is dealt with determines where the plan’s control indices come from and what they are.

Earlier we pointed out that the many-sided issue of defining targets in its most aspects lies outside the mechanism of market self-regulation. Yet for same reasons it lies outside the methodology of mathematic modeling and plan optimization, as well as outside the methodology of implementing plans of economic and social development.

One and the same methods (algorithms) of making and optimizing plans, as well as identical control structures and procedures in certain cases can be used for achieving mutually exclusive objectives included in different plans. This is what those prejudiced against planned economy should be aware of.

Yet the problem formulated by S. Okito can be solved if the issue of dividing demographically grounded and degraded parasitic needs is solved. Let us remind you how this problem has been worded: to find and effective way of combining market mechanisms and state planning and regulation in a common algorithms of social self-control. This is so because if the contrary plan is pursued the system of plan-based control will face sabotage at best and at worst — deliberate counter-action.

The point is that generally controlling the multiindustrial production and consumption system on the basis of a plan involves the following: defining targets; distributing investments between industries and regions in compliance with the targets, as well as timing their provision and volume; addressed directive control of state-owned enterprises; working out and granting government contracts to private enterprises, defining policy on taxes, credits, insurance and subsidies connected with government contracts, implementing this policy while fulfilling the plan, etc.

If these heterogeneous means turn out to be in the hands of people, who advocate different conceptions of social order and economy and act at will, according to their moral principles the problem posed by S. Okito would become insoluble.

We must make special emphasis on the need to work out a policy on subsidies, credit and insurance for every planning period. Tariffs on service provided by the so-called «natural monopolies», other rates and prices (including loan interest rate) and rental payments are the basis of price-formation that sets the minimal costs of manufacture for products of all industries. The theory of similarity of production and consumption systems[134] unites those rates and prices in a group called «price list basis». All the other market prices are formed more or less freely by means of balancing active solvent demand and supply if the multiindustrial production and consumption system functions steadily.

Every price has a share which corresponds to tax payments and return of loans and insurance credit. Besides some producers are subsidized because otherwise production would be devastatingly unprofitable or it would be impossible to retain its volume. All these payments that are reflected in price along with the «price list basis» and subsidies to consumers of certain products form a sort of «financial press» which could enable one (if one knows how to adjust it properly) to force the market mechanism of production and consumption system’s self-regulation to give out (deliver) the desired range of production and consumption of final products.

At the same time one should also know that all parameters, which determine the adjustment of «financial press» on delivering a definite range of production, are expressed in equations of interindustry balance. They are heterogeneous items of those equations expressed in value terms and form the price of any products taken into account in the interindustry balance.

If the planned range of production and consumption of products is grounded on demography and includes the products necessary for implementing the state policy different plan targets are defined for every planning period, different both in planned nomenclature and production and consumption volume.

In this connection one should keep in mind that when the society’s nominal paying capacity is always limited and no emission[135] occurs a broader range of consumers can be reached only through expanding production which leads to decline in prices as otherwise sales would be hampered by an unacceptable price.[136]

Within the integrity of the multiindustrial production and consumption system prices function as a means of limiting the consumers’ number after a certain level of production and supply on specialized markets has been attained. Therefore if production volume is sufficient for satisfying the needs of all people then there is no need in price as a means to limit consumption. Price can then be equal to zero if it is not impeded by other factors. In other words when demographically grounded needs are fully and assuredly satisfied — the perspective is zero price.[137]

While such ideal operation of the multiindustrial production and consumption system is being attained prices on some socially necessary products may fall below the level which production is profitable at. This happens because production covers the vital needs of society more fully. In his case it may be feasible (in the long-term historic perspective) to retain the socially necessary volume of production by means of grants and subsidies that are collected from other industries in tax form. This means that profitability factors are redistributed between enterprises, industries and regions.

It follows that in regard to the systemic integrity of multiindustrial production directed towards satisfying the vital needs of all laborers more and more fully the overall profitability of the system taken at historically long time intervals is more important than high profitability of some enterprises when other industries are hampered in their development due to the law of value’s being unchecked. The law of value is far from operating in compliance with a list of demographically grounded needs given in order of priority.[138]