The State in the System of Market Economy

Abstract

It is impossible to build such an economic system that is made up only of positive features. A positive feature is connected with a negative one, thus they form a pair, the actual image of reality. The tendency to maximize profits makes the financial situation of people different. Now too much central planning induces to disorganization as regards the performance of the planned tasks, if only due to the discrepancy in cooperation. The positive feature of a given reality under other circumstances reverses into its opposition.

Each economic model has its positive and negative features. The point is to minimize the former and maximize the latter, so that the economic growth, which brings well-being to some, does not spell at the same time poverty for others.

Man always makes plans and projects at the individual and social levels. Thus an economic reality is brought to existence from the rank-and-file level, that is from the enterprises, and from above, from the state and big corporations. Social relations are always built according to a definite economic, political, and moral pattern. If this pattern does not correspond with the circumstances, is inconsistent with reality, then the model is abandoned.

In practice, we accept the model which is effective. This model is duplicated and it gains social approval. It is on this foundation that its extension is built. The economic system is being built on the principle of causality, taking into account the concrete reality of finality, of how people image their task. This causality is made up of human patterns and plans.