As to economic planning, it can achieve positive results only if two conditions are observed: a) if it correctly reflects the requirements of the law of balanced <i.e. proportionate> development of the national economy <i.e. if the methodology of planning adequately models the proportions and relations between industries providing for predictability of the consequences of decision-making on economic policy> and b) if it conforms in every way to the requirements of the basic economic law of socialism <which means that the planned targets of social and economic development are set in accordance with the demographic setting and that the planning system is aimed at securing satisfaction of the morally healthy (vital) needs of everyone>» (“Economic Problems of Socialism in the U.S.S.R.”, “Remarks on Economics Questions Connected with the November 1951 Discussion”, ch. 7. “The Basic Economic Laws of Modern Capitalism and of Socialism”).

Yet the above-quoted extract (if divested of our explanatory comments put in <angular brackets>) to many would seem empty (meaningless) babble of a top party hierarch ignorant of practical issues and having nothing to do with economic reality of the Soviet society.

Many abide by this point of view justifying their stance by recalling the economic reality of the late «zastoi» and «perestroika» USSR. This was a time when there was shortage of most products ranging from foodstuff to furniture, housing and cars (that were yet considered to be among luxuries optional for a family household) and overstocking (glut) in some categories of products, such as an abundance of carpeting and cut-glass ware that existed at a time. Supplies of some products to the trading network experienced regular failures, among them even such basics as salt, soap, tooth-paste, sugar and sausage (which was at times available only in Moscow, Leningrad, republic capitals and closed «classified towns» («spetsgorodki»). Along with that there existed the «raspredeliteli» (distribution centers only for Soviet “elite”), where the Soviet “elite”, consisting of party, government, academic and other «nomenclature», got all the products they needed according to their individual rank no matter how poorly the public trading network was supplied. And those are just a few facts characteristic of that reality.

It could seem that this experience of life in the USSR confirms that Stalin’s statements on the fundamental economic law of socialism and its implementation on the basis of planned control of economy are most surely nothing but preposterous meaningless babble; that real life has proved that planned economy is not viable if it is to serve the interests of the majority of people.

Yet if one correlates the extract quoted from “Economic Problems of Socialism in the U.S.S.R” with Digression 6 it becomes clear beyond doubt that on the contrary the history of the post-1953 USSR including the mess the country got into in the times of «zastoi» and «perestroika» proves that Joseph Stalin gave the right definition of the economic laws of socialism yet after his assassination the strategy of social and economic development was worked out and implemented in the way that severely violated both the fundamental economic law of socialism and the law of regular and balanced development of economy.

In order to exemplify this statement we shall make another digression.

* * *

Digression 7:

The Post-Stalin USSR

was an Anti-Socialist State

As for the fundamental economic law of socialism, which defines the goals of production and distribution of products in a society, there was no strict differentiation and division between the degraded parasitic and the demographically grounded range of needs neither in the general political economy of socialism nor in the applied theories of controlling economy on a planned basis.

In the Stalin period it can be explained by solving the tasks of the country’s social and economic development on the basis of Marxism which the Russian culture accepted but had no time to comprehend in correlation with the actual life situation. The intellectual potential was spent in struggles within the party, technological and organizational aspects of restructuring national economy in the 1920s — 1930-s. Then all every effort was directed to win the Great Patriotic War (World War II as it is called in the formed USSR) and to carry out the economical restoration and re-equipment of military forces (when missiles and nuclear weapon were introduced) that followed. But after the restoration period was over and “Economic Problems of Socialism in the U.S.S.R” was published the complete failure and futility of social and economic sciences in the USSR can be explained only by the degraded parasitic morality of the scientists themselves. The more vicious in morals — the more corrupt and obliging and higher in the social hierarchy, but at the same time the more stupid and less efficient in defining and solving the problems of actual life and social development.

As a result of such indifference of science and politicians towards the two incompatible ranges of needs alcohol and tobacco products were taking the leading places in the revenues of the USSR budget. And by the mid-1980-s each rouble gained from sales of alcohol was attended by 3 — 5 roubles (in different assessment) of direct or indirect damage registerable by bookkeeping. It was caused by faults, factory accidents, absenteeism, spoilage, hooliganism and more serious crimes and results of people’s actions under the influence of alcohol. There is also damage that evades bookkeeping and includes health damage to the new generations given birth by drinking parents and cultural damage caused by absence of proper education and by genetic potential’s degrading under the influence of alcohol.

The same can be said about the production and usage of tobacco products and, especially today, of different dopes.

As a result the USSR — Russia in post-Stalin period fell, falls and in the nearest future will fall behind the requirements of time in mass solving of moral, scientific, technological and organizational problems of its development which define its international position and the attitude the local “elites” and common people of other regions of the Earth share towards it.

It’s also no use speaking about the satisfaction of people’s needs by means of development and improvement of production on the basis of high technologies. The old enterprises were working for decades without upgrading their technological base and the new ones were constructed according to projects, which provided for the use of old technologies and morally outdated equipment. Above all «dolgostroy» (long-term building) flourished caused by the violation of proportions between the planned amount of works and the productive capacity of the construction industry.

It means that in the post-Stalin period it was not only the fundamental economic law of socialism that was violated but the law of planned proportional development was systematically violated as well. In our opinion the most striking example of violating proportions resulting from falsely defined targets i.e. from violating the fundamental economic law of socialism, — are the forays of «virgin soil reclamation» and the development of the USSR Armed Forces.

The first virgin soil crop exceeded all expectations. It was reaped … and mainly rotted because the infrastructures of accommodation, storage, grain processing and transport had not been created in advance. Moreover during the first forays on the virgin soil an agrotechnics, that did not agree with the natural conditions of Kazakhstan steppe, was employed and in some regions up to half a meter of fertile soil was carried away by weathering. It will take the soils thousands or at least hundreds of years to recover from this damage.