Prices.

[Nolan]

How was cost determined in Socialist states? I have a right-winger telling me on a Youtube vid that prices were determined by data taken from Capitalist countries.

I smell bullshit, but any thoughts would be appreciated.

[Nolan]

Here's the quote:

"Communist countries have the problem ensuring "the right amounts" of various products and services are created for their society.

Not having the natural feedback mechanism of capitalist societies, in the form of supply/demand pricing, communists did what? Can you guess?

They used data from capitalist countries to set their own production and distribution quotas.

In other words, their system relies on data from Capitalism. Even then it didn't work due to lack of demand-reflexive pricing. LOL"

[The Vegan Marxist]

Well, I'm not too educated on the price-system within Socialist states, but through socialist-lands, such as Catalonia, money was practically abolished altogether, except for certain resources that were quite scarce. And what was done about those was that they made what they called 'coupons', which determined a certain amount of such resource that could be given to whoever is wanting it. But if Catalonia was to continue through this revolutionary movement they had implemented, I'm sure they would've gained enough resources within time & the coupons would've been abolished as well. And we would've seen the first resource-based society.

[Nolan]

Note: I'm asleep. Please don't point out that its not about prices. I just saw that. This is actually an old debate.

Or is it? Damnit I'm confused.

[Psy]

The prices were not set by capitalists prices this would make no sense as it wouldn't be any good for setting prices within the region. The KGB didn't go to the west to find the average price of say a turkey sandwich, since the goal of set prices is to ration the set price is based on limiting consumption (since the U.S.S.R selling commodities to its citizens didn't create any surplus value that it could use internationally).

[FSL]

Until 1967 for the greatest part of the economy prices for each sector were set by the average variable cost (as in bourgeois economics, not marxist variable cost) of production in said sector + a profit margin that was a percentage of the average cost. Most of the heavy industry that depended on big investments on fixed capital was operating at a loss as a result. After 1967 things were rationalized and the total cost was reflected on the price, allowing every company to make a profit.

For companies that dealt straight with consumers, prices depended on the relative amount of the product for each consumer. Price for a hospital visit, for example, was set at 0 rubles. For the consumer goods that were relatively scarse I 'd say prices were changing to deal with shortages or stocks but I'm not sure.

[Nolan]

bump.

[Uppercut]

You might want to check out "Problems with Economics in the USSR."
It discusses the law of value and its use in state enterprises. I don't remember the details, though.

[mikelepore]

Not having the natural feedback mechanism of capitalist societies, in the form of supply/demand pricing, communists did what? Can you guess? They used data from capitalist countries to set their own production and distribution quotas.

People who say that kind of gibberish that don't know how capitalist businesses determine their production quotas, which I do happen to know. They determine production quotas by the rate at which the product is shipped to others. For example, retail stores reorder goods to refill their warehouses and shelves at the rate needed to keep up with the rate that customers are buying the goods, and the factory starts new production to keep up with the rate that retailers place those orders. Prices have nothing to do with it. Prices are related to the decision whether or not to make and sell the given product it the first place, but have no role in setting quantities per time period.