The Correct Relation Between Prices of Producer Goods and Wage Costs in a Socialist Economy

Abstract

The subject I chose at first was entitled: ‘Relative prices of capital and consumer goods’. It was one of the topics suggested by the organizers of this Conference. But I had to modify it, because I realized that I would not be able to say much on it, if I had to keep to its literal formulation. For it seems to me that price relations between producer and consumer goods have no significance whatever as parameters for any decisions in a socialist economy. They neither influence the allocation of resources between investment and consumption sectors, nor do they affect investment decisions in particular industries, because those decisions are not governed by higher profitability in money terms.KeywordsPrice LevelProducer GoodProject VariantInvestment ProjectSocialist EconomyThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.