4.5. Planned Economy of Bolsheviks is a Socialist Economy
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4.5. Planned Economy of Bolsheviks is a Socialist Economy
Having provided a definition of the fundamental economic law of socialism at the end of Chapter 4.4 Stalin explains it further and differentiates objectives and the means of accomplishing them.
«It is said that the law of the balanced, proportionate development of the national economy is the basic economic law of socialism. That is not true. Balanced development of the national economy, and hence, economic planning, which is a more or less faithful reflection of this law, can yield nothing by themselves, if it is not known for what purpose economic development is planned, or if that purpose is not clear «we have dealt with the task of defining targets in Digression 6». The law of balanced development of the national economy can yield the desired result «i.e. attaining and maintaining the necessary level of industries’ capacities and the proportions between industries» only if there is a purpose for the sake of which economic development is planned. This purpose the law of balanced development of the national economy cannot itself provide «because the proportions between various industries and the absolute capacities are themselves defined by the targets set within this task». Still less can economic planning provide it «as defining targets does not lie within the bounds of proportions between industries and the methodology of planning». This purpose is inherent in the basic economic law of socialism, in the shape of its requirements, as expounded above. Consequently, the law of balanced development of the national economy can operate to its full scope only if its operation rests on the basic economic law of socialism.
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.