In other words the global market mechanism is adjusted in such a way that the majority of the planet’s population is forced to sell the products of its labor for junk prices providing for consumer well-being of the minority.

[122] This is a viewpoint attributed to empress Catherine II and is not a word for word quotation.

[123] What are the labour inputs on finding and proving a new mathematical theorem? This is a question that will remain undecided. And one comes across such examples in the society’s working life in abundance.

[124] I.e. when prices are formed freely preventing the state from fixing obligatory prices; when there are no quotas which limit or set a minimum obligatory level for certain kinds of production; when there is no well-developed state-owned sector whose production and price policy affect price-forming on all the markets of society; when usury is practiced freely including bank corporations usury; when stock exchange speculations are free inevitably paving the way for freedom of usury, etc.

[125] Yet the liberal defenders of market believe this very method of regulating inter-industry capacity proportions and the absolute production indices to be the norm. Those among them who are most well-meaning and silliest even nowadays want «the market mechanism» to regulate production and distribution in the society in such a way as to form a law-abiding social majority living in prosperity in the succession of generations. Such people pay no heed to the limited ability, which is objectively inherent to this mechanism, and to the way prices are formed in a crowd-“elitist” society.

[126] In the historically real socialism of the 20th century many things were carried to the point of absurdity on purpose. The crowd-“elitism” changed his disguise and substituted the ideal of human righteous community (the so-called socialism) by the reality of barracks for slaves. But this is a special aspect of the issue of socialism.

The reality of slavery based on barracks-like discipline and executed under cover of socialist slogans has only one point where it is related to socialism proper, i.e. to arranging socialist production and distribution of products in accordance with the vital interests of all laborers. It is possible only in a situation where there is neither theory nor theoretically non-formalized practice of controlling the multiindustrial production and consumption system on the planned basis. No theory and practice, which every member of society has an access to and which are understood by its politically active part.

If we are to speak in historically specific terms an attempt to build socialism on the basis of Marxism no matter what country it is made in the freedom of a socialist society is doomed to be substituted with barracks for slaves. One of the reasons is that Marxist political economy is based on imaginary categories that have nothing to do with real life and therefore cannot be practically measured in economic activity. Therefore Marxist political economy cannot be integrated with a system of accounting, financial and economic statistics, and so planned control of economy in a socialist society can be as efficient as the society is free from Marxism.

On the other hand the substitution of declared socialism by the practice of barracks for slaves can be performed the more effectively the lower the educational standard of the society’s majority is. The well-meaning crowd which cannot interpret life independently indulges in a blind faith in socialist leaders. These leaders “elitize” (make an elite out of themselves) and start misusing their power, become parasites which is exactly what provides the grounds for creating the barracks-for-slaves system. Within this system any element of socialism is suppressed by the «socialist» oligarchy which seeks to break away from the limitations imposed on it by the society’s true achievements in building socialism and to convert to overtly legalized crowd-“elitism”. This exactly is the way «perestroika» was started in the USSR leading to emergence of the oligarchy capitalism of the Yeltsin era.

[127] In other words the indices must be measurable (in kilometers, tons, standards, etc.) or registerable by «done — not done».

[128] The reasons market mechanism is completely excluded or blocked partially can be different: ranging from sheer lack of skill to control its adjustment to force of circumstances or deliberate choice of other means to complete the objectives set in the plan.

[129] February 2002

[130] But their views, which were essentially true, did not have a cult status either in the USSR or abroad. They are not the subject of studies and discussions at universities, and judging by the published works it is not these views that set the subject for the studies of official economics.

[131] A fool is more dangerous than an enemy.

[132] It would be more precise to say «in a single algorithms of social self-control».

[133] This condition stipulated by the phrase in italics is necessary because globalization can have different aims but this problem must be practically solved for any variant of globalization to become possible.

[134] Described in the works by Internal Predictor of the USSR “The Brief Course...” and “Dead Water” in editions starting from the 1998 edition.

[135] In this connection one should say directly that the main factor generating nominal price growth, which forcedly leads to the inflationary emission, is interest on loans.

[136] Increasing income in order to ensure sales of certain products in a crowd-“elitist” society can lead to an increase in nominal prices on other products and not to ensuring sales of desired products regardless of their usefulness. For example, high standards of education and health care cannot be provided by means of increasing nominal income of large groups of population because on a self-regulated market such increase in income will result in price growth on products of mass everyday demand.

Therefore paid high standard health care and education on the basis of free self-regulated market is always the privilege enjoyed by the richest social strata whose representatives are more or less parasitic on the life of others. But in the planned economy of the USSR by the middle of 1950-s high standard (judging by world standards of the time) education and health care was practically available for the majority of the country’s population. This became possible due to targeted subsidies of socially useful activities that could not be developed on the self-repaying principle.

[137] In other words the price-list on final products within the demographically grounded range is the financial expression of the error vector for society’s self-control because ideal control is characterized by zero values of control errors and its deviations are characterized by non-zero values of control errors.

That such interpretation of the price-list’s role in modeling the processes of controlling production and consumption is a consistent one has been proved in the works by Internal Predictor of the USSR “The Brief Course…” and «Dead Water” in editions starting from the 1998 edition.

[138] This way a structural transformation of economy was undertaken in the USSR between 1920 and the 1950-s though it contradicted the law of value. In this period the system of general and higher special education was created which was world’s best for that time.

But as soon as this superior profitability which exists in the systemic integrity of economy was forgotten (after the reforms were started in the 1990-s), was no more felt and maintained everything became a mess in science, education, health care, army, industry and regions.