Measuring the Effectiveness of Capital Investments

Abstract

In a socialist society the effectiveness of outlays is determined by their influence on the productivity of social labor. This is recognized by all those who participate in the discussion of the problem of the effectiveness of capital investments. (>u>1>/u>) But having examined the logic of the arguments presented by many economists we discover that as soon as they deal with concrete methods of calculating the effectiveness of outlays the initial proportion on the effectiveness of outlays under socialism is either completely ignored in their arguments or is artificially tied to the proposed methods of calculation.