Wages As an Economic Incentive

>p>The wage mechanism is one of society's most effective economic levers. Accordingly it is very important to see that wages are active, to keep a careful check on the stimulating impact of wages, and to regulate this mechanism in good time.>/p>>p>The party has always attached great significance to wages in its economic policy. The functions of wages as a cost-accounting lever have been substantially enriched in the present stage - the stage of developed socialism. This is attested to by the decree of the Central Committee of the Communist Party of the Soviet Union and the USSR Council of Ministers "On Improving Planning and Strengthening the Influence of the Economic Mechanism on Increasing Production Effectiveness and Work Quality.">/p>

The New Economic Mechanism and Credit Reform

The economic mechanism in which the macro - and microeconomy are for the most part managed by centralized administrative methods minimized the functions of the bank. The radical economic reform currently under way is dramatically raising the bank's role. The demand is to create a banking system that would serve socialism under the conditions of the all-out functioning of commodity-monetary relations and that would secure the regulatory role of the law of value in its application to the qualitative features and advantages of the first phase of the communist formation in its sphere.

Only Efficiency Will Triumph Over Scarcity

The main reasons behind scarcity are the higher expenditure of resources per commodity unit, the slow pace of construction, the insufficient growth rate of production of new products, and attachment to old ways. The kind of scarcity that originates as a result of the imperfections in management will be discussed below. Of course, its' sources are to be found in the production sphere.