Economic Contradictions of Socialism

Abstract

This chapter deals with the internal contradictions of the socialist system. The first contradiction arises between the organisation of the socialist production process (socialist productive relations) and the distribution of its results. The chapter also draws attention to the concept of labour exploitation, universal work obligation in socialism, and its connection with the level of development of society. At the same time, the distribution of the added product, its capitalisation, and the creation of consumer funds are examined. The second contradiction of socialism speaks of the deepening discrepancy between the development of productive forces and the aggregate demand of society. The significance of the state production monopoly for the level of development of productive forces and its influence on the formation of aggregate demand is discussed here.