The Main Cause of Crises and How to Cope with It

There is such a concept in the political economy of proletariat developed in due time by Marx - deviation of a market price from the cost. This deviation pertains to any economic system based ON ELEMENTS of market satisfaction of needs. But if in case of weak and undeveloped market system deviations can be put in order rather quickly, in case when the system is very powerful and dynamical - and in general: the more dynamic the system is, - the period of deviation of the market price from the cost, as practice of modern capitalist development shows, is being extended.

However in any case all ends in regulation which is felt as crisis. Crisis is directly connected to necessity to harmonize the cost and market prices. The longer deviation of prices from the cost lasts, the more powerful crisis regulation is then. What is deviation of the price from the cost?

When the goods produced enter a stage of realization to the consumer, then in a case, we'll say, of keen demand for the goods and lack of its offer, market price for the given goods start to exceed its cost. On the contrary, in case of excess of the offer over demand, its market price falls below the cost.

Market price in spontaneously functioning economy practically never corresponds to the cost; because the demand is dynamic in its changes and consequently the offer HERE is based only on guessing of the producer: pier, judging from previous purchases, demand will grow, it is necessary to produce more ... While it could happen so that the demand will go to the opposite, therefore the goods are being produced more, than objective, independent of the will of the producer, solvent  (market) demand (though producer today tries to impose demand with the help of so-called aggressive advertising, thus reducing dependence on elements) demand.

From here we can draw a conclusion: the sum of all market prices of the goods offered to realization CAN correspond to their total cost only in case when demand for the goods with sufficient accuracy is equal to the offer. But as it's almost impossible to achieve such conformity in spontaneously functioning economy (first of all owing to very high dynamism of the demand in the advanced capitalism), so far as achievement of conformity between market prices of the goods and their costs occurs as AGERAGE-LONG-TERM fluctuation of market prices round about the cost. In other words: conformity is all the same (sooner or later) achieved but only through SPONTANEOUS regulation of deviations of market prices from the costs, at that the costs are not constant sizes.

They may say: everything's clear with market prices of the goods and what is it the cost of the goods? Whether it's not one and the same? On manufacture and realization (transportation, storage, etc.) of all goods - even simply "extracted from nature" - known quantity of labour measured by working hours is always spent. Labour, being determined quantitatively as not simple (or actual) but SOCIALLY NECESSARY expense of working hours is that very cost of the goods to which the price of realization of any goods should correspond in normal economy - so that there will be no crises which, as it's said, are connected just to reduction of market prices of the goods relatively to the costs, expenses for manufacture and realization of the goods of socially necessary labour.

Thus the reader should quite clearly understand also the following: the more the market economy is MONOPOLIZED, the longer will be the time market prices will deviate from the cost. At that not only desire of monopoly "to make profit" contributes to it, i.e. to receive a maximum of the profit at a minimum expenses of labour on manufacture of the goods (any actual expense of labour of monopoly is being a priori considered by exclusive "managers" socially necessary; if it could be different, in fact it were they who organized manufacture!) but also an opportunity for diversified modern monopoly fast transfer of the capital from one branch in another. The last, fast transfer of capitals, reminds activity of a person who, having left one thing unfinished, passes to another business more interesting to him.

One more reason of deviation of market prices from the is cost - huge weight of FICTITIOUS MONETARY, i.e. market-price cost: the goods are not produced yet, they do not exist but are already sold; sales on credit at which the goods "have been already eaten" while the cost of them still functions ... Moreover, PIECES OF PAPER as various so-called securities which cost during working hours (at their manufacture) is immeasurably less than those market prices which are used for their realization ...

At last, paper money are being sold... Insufficiently critical mind can seem that the only way out from state - financial monopolism is that one which with passion, worthy the best application till now, apparently, propagandizes well-known grandson of well-known children's writer of the USSR - destruction of monopoly, organization of competition forcing producer to recognize socially necessary not own actual expenses but dictated by the market. Actually, it is a Utopia: no passions can transform modern state-monopoly economy that existed and could exist only in 17 century - the century of birth of capitalist way of reproduction with its really free competition of fine manufacturers who had just turned from peasants into capitalists. It is impossible adult guy having already sexual contacts with women transform into innocent boy of five - ten years ...

The way out from a situation when crisis became, as a matter of fact, a permanent condition of a bourgeois market economy, will consist actually in what long time ago classical Marxism specified. It pointed, say, "out of the mouth" of Engels: "Forcing more and more to transform into a state ownership large socialized means of production, the capitalist way of manufacture itself specifies a way to performance of ... revolution. PROLETARIAT TAKES GOVERNMENT AND TRANSFORMS MEANS OF PRODUCTION FIRST OF ALL INTO STATE OWNERSHIP" (K.Marx and F.Engels. Works., volume 20, page 291; everything is stressed by Engels).

They may ask: why then transition from one state-monopoly economy - bourgeois - to another - proletarian - will be the way out? In fact bargain one trouble for another! It will not be even-Steven. Because, first of all, in conditions of PROLETARIAN state capitalism, at state authority of proletariat there is an opportunity to overcome aspiration of monopolized bourgeois "manager" to consider all actual expenses of bourgeois monopoly socially necessary: in particular, through organization of the corresponding account of expenses of socially necessary labour. Secondly, here - at democracy and dictatorship of proletariat - the next step of historical development of mankind about which classical Marxism also speaks is quite possible.

This step consists in gradual, but full elimination of SPONTANEOUS reproduction (remaining spontaneous also in conditions of proletarian state capitalism), in gradual but full transition from proletarian state capitalism to communism. In conditions of the last the pursuit of profit and also excessive and-or insufficient manufacture of products stops (we shall notice especially for environmental groups: in connection with absence of unduly made goods, as well as their packages and so on environment does not get littered in such great degree as it occurs now).

Communism - real and not that mockery of it which is with pleasure referred to as communism by bourgeois propagation - will DYNAMICALLY reveal the needs of each member of a commune and the same way dynamically satisfy only this revealed as absolutely necessary to people. Demand at communism will be practically always (within the limits of accuracy of measurement) meet the offer and the offer - demand. It will remove the very opportunity of the crisis connected first of all to deviation of market prices from the costs.

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