J.V. Stalin determined the duration of the estimation period of national economy profitability on the whole as ten or fifteen years. It means that during tan or fifteen years virtually all investments should compensate for themselves in the described way and secure national economy profitability estimated at constant prices.
Besides J. Stalin’s wording about the rule of superior profitability of national economy actually implicated the requirements for planning. Those are to provide for high-quality renewal of all the equipment and organization of national economy as united system of production and consumption every ten or fifteen years. It does not mean that there cannot be more durable enginery and projects with a longer self-repayment span or planned unprofitable but socially necessary projects. It means that in every industry more up-to-date, more efficient equipment and technologies should be introduced extensively.
What has been said proves that that J.V. Stalin suggested no protracted building when a project would become obsolete, the execution of it would lose sense and when structures installations would begin ruining in course of construction. Such protracted building later becomes normal. But it is a perversion of Baibakov’s followers[423] in the State Planning Committees of the USSR and republics of Khrushchev and Brezhnev’s age.
J.V. Stalin wrote that the law of value was subject to the rule of «superior profitability of national economy» in the period of ten-fifteen years, while the multi-industry system of production and consumption was subject to «the main economic law of Socialism» and «the law of planned (proportional) development of national economy». Actually all these things implicated two associated goals:
Maintaining balance of dues and grants in national economy, i.e. providing for financial stability of planned unprofitable enterprises and business of low profit. That is to be achieved owing to redistribution of excess profits of highly remunerative enterprises in favor of business of low profit;
Using over and above the plan production facilities so that the produced output would find a consumer and would serve society. These facilities:
inevitably exist because of mistakes in books and necessity to secure stability of the plan by resources and facilities involved[424];
appear again due to scientific, technical and organizational advance in process of accomplishing state plan targets, – so that the goods which can be produced with these facilities could be in demand and use for the society.
Neither of these goals can be achieved under bureaucracy rule. It was one of the reasons for J.V. Stalin to write fairly that «under the present Socialist conditions of production (our splash text) the law of value cannot work as a «regulator of proportions» in labor division between different industries».
The matter is that non-profitability and low profitability of an enterprise can have different nature. It can result from poor bureaucratic management and Socialist property looting or from the public price-formation policy pursuing noneconomic objects and being guided by J. Stalin’s principle of superior profitability. A bureaucrat who is to manage the balance of dues and grants cannot differentiate between these types of non-profitability and low profitability. Therefore basically he can maintain the balance of dues and grants distributing donations in favor of fools and thieves at the expense of hard-working people. Being «quite well-meant» he violates the principle of the superior profitability of national economy trying ‘not to make a mistake’ and not to harm the public price-formation policy though he does not understand what objects it pursues. But it is within a high-ranking bureaucrat’s grasp to maintain the balance of dues and grants according to the principle of the superior profitability of national economy.
A bureaucrat of a lower rank is no better. He is to manage an enterprise. He does not understand the principle of the superior profitability of national economy; moreover it disgusts him thoroughly, because his personal and clannish objects substitute for social ones that determine the principle of the superior profitability. This principle secures his wealth in the future on a par with all people. Nevertheless the fact that business is subject to this principle, so that resources and production facilities are to be used according to it, prevents the bureaucrat from abusing his position and getting rich to the prejudice of others, both: at present and in the future.
In the same way it is impossible to use over and above the plan production facilities under bureaucratic rule. Using over and above the plan production facilities in essence requires expansion of the scope of commodity-money exchange in Socialist economy. The scope should embrace public enterprises of national economy. Then it would become possible to organize self-regulation of the usage of over and above the plan production facilities in national economy. It could be done when they would appear not to be used in a planned work. The immediate person in charge of the facilities would manage it without wasting time on forwarding ideas, arranging meetings, changing the plan in action. It would help to avoid standstill of facilities until they are used for planned production in the next planning period.
But bureaucratic rule left out such a possibility, because production facilities belonged completely to bureaucrats, that is business managers and directors. Legalization of the machine of market self-regulation when using over and above the plan production facilities led automatically to sabotage, both deliberate and accidental. Deliberate sabotage was aimed at discrediting Socialism and re-establishing Capitalism. Accidental sabotage was through ignorance. It urged to rush for profits in order to improve the well being of their own group to the detriment of production objects of great importance to society.
The rule of Marxism political economy rooted out the possibility to expose deliberate sabotage and to leave out sabotage through ignorance. Here some explanation is needed.
Henry Ford, being a private proprietor de jure, regarded his enterprises common wealth de facto. Therefore concluding purchase and sale deals and adopting the policy of planned reduction in price for output goods to serve people he objectively worked for the principle of the superior profitability of US national economy. He did not care about correlation of purchase and sale based on property law with the status of public property of his own enterprises. Political economy as a means of organizing sensible public work on the basis of a common world out-look did not matter to him. The reason was that he did not realize it had such a function. He regarded all contemporary political economy experts as windbags and drones whom conscientious working people had to feed. Actually that was essentially true.
In the USSR things were different. Bureaucrats regarded enterprises of public property as their private property within the limits of their authority. Marxism political economy would not answer to the following question:
What if a state owned (Soviet) enterprise transfers some money to the account of another state owned enterprise as a payment (or som e thing else) for certain goods or services produced by the second ente r prise?
Unlike H. Ford, J.V. Stalin being the leader of the ruling party and the head of the state thought over this problem and the consequences of it being unsolved. He realized the role of sociological theories and particularly theories of political economy as a means of organizing sensible public work on the basis of a common world out-look. J.V. Stalin wrote the following lines on the problem of an unintelligible interpretation of such questions in Marxism political economy: