On the Relation between the Law of Proportionality, the Law of Market Regulation and the Law of State Regulation: the Differing Roles in Planned and Market Economies

Abstract

In the modern epoch many countries, including China and Russia, have developed market economies of differing types. This work provides an analysis of the laws of market regulation, state regulation and proportional development, as well as an analysis of the relations between them, all of which are of exceptional scientific and political significance. The law of proportionality is a universal law of social production and of the national economy. The law of market regulation (the law of value) represents an important mechanism for implementing the law of proportionality in a commodity economy, and has played a decisive role in the application of this latter law from the time when the simple commodity economy was transformed into a capitalist commodity economy. The law of state regulation (the law of planning) is the means of realisation of the law of proportionality in collectivised production and in a state-regulated national economy. In China's socialist market economy the law of state regulation (the law of planning) and the law of market regulation (the law of value) are combined into an organic whole with fruitful, mutually reinforcing functions and synergetic effects, in order to bring the law of proportional development into play and to banish the old economic problem of disproportions in economic development. Through these methods, a larger mass of production can be achieved with a smaller expenditure of resources, while obtaining maximum benefit and bringing about a high level of economic and social well-being.