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Material
production plants produce useful “material”, products, that
turn commodity as soon as they enter economic relations. Before
utilization in production this “material” belonged to Nature,
then it was appropriated by man and transformed for production
needs of man. In terms of any living being the matter is primary
thing in life. To continue life we need to eat, to make dwelling,
to warm it with fuel, to sew clothes and so on. That is why
the “material”, its extraction or growing, manufacturing and
consumption in economic terms is the basis for reproduction
of society, for reproduction of the whole economy.
Thus material production is a
pivot of national economy. Material production is divided to
production of means of production (I subdivision) and production
of means of consumption (II subdivision). The core of
equilibrium of any undertaking is loaded in formulas
(inequalities) of Equilibrium.
The first three formulas are well known since they were discovered
by Karl Marx.
They explain relations between two divisions of material production
in terms of the labour as the basis of value, and the structure
of commodity as a combination of constant (C) and variable
(V) capital, and the worker’s surplus value (M) – the source
of the capitalist’s wealth.
1) I(V+M) >IIC
2) I(C+V+M) >IC + IIC
3) I(V+M) + II(V+M) > II(C+V+M)
4) I(C+V+M) > II(C+V+M)
Production of means of production
should leave behind production of means of consumption by the
volume of product. This is the forth rule in brief.
5) I(V+M) - IIC = Δ(V +
M),
where Δ(V
+ M)
- is an increment,
emerging in material production industries.
6)
Δ(V + M) = IN(C + V ) + NP(C + V) + ΔМP(C
+ V)
or = IN + NP + ΔМP
This equation has only
illustrative, additional character. It reveals the components
for increment to be divided to, and shows that economic growth
is impossible without growth of its components. The components
are material pre-conditions of future economic growth. There
is no ‘profits’ in infrastractural and non-material branches
of economy. Because both of them are costs in Economy. None of
them can produce new value. The labour results of these
sectors are used in Economy as activity, not as a matter.
7)
IN(C + V) > NP(C + V ) + ΔМP(C + V + M) or
IN > NP + ΔМP
Inequality reveals main
condition of infrastructural and service enterprises activity
within extended reproduction.
The symbols in Formulas:
C – constant
capital or material costs of production new value ;
V – variable
capital or the costs of living labour which take a form of
wage;
М –
surplus value or surplus product, that has a name of ‘unpaid
surplus wage labour’. It is fully appropriated by capitalist,
owner of means of production
МP –
Material production ;
IN – Infrastructure;
NP – Non-material
production (field of Services);
Infrastructure and field of
services consume material made in material production, and
consume it in service production, in action (activity). This
activity is consumed by the Production and by Society as
services. In this way the equilibrium between the material,
stuff and its consumption (as energy of activity) is settled.
These material and energy are produced and consumed in national
economy. The mentioned condition is corresponds with physical
laws of indestructibility of matter and conservation of energy,
and does not contradicts with the principle of mass and energy
equivalency, opened by A.Einstein (E = mc2).
Primary condition of economic
prosperity is following: the volume of material, or product of
material production should exceed the total costs of
infrastructure and field of services (C + V). By this way
accumulation of capital and extension of reproduction is
possible. Of course, the product of material production is
calculated not only in natura, but in terms of value. The last
word means that creation of product takes certain quality of
working hours.
It is working hours of material
production workers that create the substance of value. Working
hours are invisible substance of living labour embodied in
material products, that are trading for labour, for activity of
infrastructure and labour results of services employees. Hence
the sum of those working hours in material economy should be at
least more than the costs of services delivered in trade for the
material. This is the point of the Economic Equilibrium
definition.
The equilibrium Laws make nations
follow them. Otherwise world economy may come to comprehensive
crash. Once again.
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