System Determination Theory Of Circulation Process

If take an all round and developmental view to observe Marx's theoretical system of economics, we would find his'Das Kapital'is a first a systematic methodological system, the whole theoretical system revealed dialects as a system. Marx's theories on production and distribution and relation between circulation and consumption must be developed according to our time. This kind of development is the so called system determination theory of circulation process. The main contents of system determination theory of circulation process includes: first, the process of social, economic reproduction is a big system, like the production process, circulation process is also a sub-system of the whole system; second, circulation process is determined by production process, objects of circulation process, the social nature of circulation process and economic scale of circulation process are all determined by production process. On the contrary, in certain partial forms, circulation process also determines production process. In addition, the system of market economy can not resolve the issue of maintaining its healthy functioning by its own force, intervention of the market force by strong and effective macroeconomic regulation is required. System determination theory of circulation process includes both the reasonable core of production determination theory in respects of objects and nature of circulation and reasonable elements of the theory of circulation determines production. The system determination theory of circulation process avoids one-sidedness of production determination theory and circulation determination theory.Some economists in our country abstract circulation in general from elements of different economic, social process on one hand, restore socialist circulation to circulation in general on the other hand. In fact, these economists are researching circulation process in the socialist economy under the name of circulation in general. This paper questions the contention of restoring circulation into circulation in general, tries to re-establish the original meaning of circulation in general. Based on this, persisting in socialist circulation process is viewed as unification of circulation in general and socialist special circulation. This paper draws the following conclusion from this foundation of research: socialist market economy in the primary stage of socialism coexists with capitalist market economy. Thus circulation in socialist market economy has common elements of market economic circulation and special factors of capitalist market economy. Therefore, socialist market economy should not only learn common experience of market economy from capitalist market economy, but also factors reflect typical historical stage of capitalist market economy. As long as these factors are advanced comparing with our current situation, they should be utilized.It is impossible to bring down Marx's theoretical structure of capitalist production relation entirely to establish a new one in China. Creating a brand new system of socialist political economy and economics of circulation is unattainable. Realistically, we must make the choice: based on further understanding of Marx's economic theories, we must describe patterns of circulation in socialist market economy by using Marx's research system of circulation process in'Das Kapital'to serve the building of socialist market economy.Question of the nature of the labor in the field of circulation is a hot topic of research, which divides scholars into a lot different views. Although many economists tend to steer away from this debate, the question of the nature of labor in the field of circulation is an unattainable important question. The major difference between circulation process and production process is the later has a productive nature. Many'broad view'holders of productive labor try to ignore this difference. This paper preserves in the'narrow view'of productive labor and compared ideas of the'broad view'holders,'narrow view'holders and people in the middle of the two views. Marx did not limit productive labor to the range of work of working labor on working objects directly. But the worker in general mentioned by Marx is specific to the process of production. So, the division between work directly and indirectly to the working objective is inside the firm. Hence, productive labor of Marx refers to labor directly towards working objects in the same firm. According to this view, besides direct labor, productive labor should also include the work done on R&D and production management. On the other hand, the nature of capitalist production is the production of surplus value. Starting from capitalist production process, a more suitable definition is such that productive labor is labor that increases capital and labor producing surplus value directly. With this distinction between productive and non-productive labor, labor in the field of material production for the exchanged of capitalist's surplus value is productive labor, labor for exchange of income is not productive labor. This is the most strict and genuine distinction between productive and non-productive labor. Of course, Marx has broad meaning of labor and further meanings derived. In Marx's analysis, workers'labor in commerce dose not create material product, nor does it create value and surplus. Therefore, workers'labor in commerce does not belong to the definition of productive labor in its original meaning. But, to the commercial capital, labor in commerce is part of the functional capital; commercial labor executes the function of realizing the value of the goods and the surplus value, thus obtains commercial profits for the commercial capital. So to speak, commercial workers'labor could exchange with capital and bring surplus value, it is capitalist productive labor.Marx's theoretical analysis of pure circulation cost compensation coincides with the functioning of the capitalist economy. Marx's mode of compensation is backwards pushing, we call it'backwards pushing mode'. In our country, the leading view is the mode of'forward compensation'suggested by Lu Shenbei and Jiang Shiyong. The fundamental difference between the forward mode and the backward mode lies in whether real economic relation is reflected in it. The backward mode starts from realities of modern market economy and commercial capitalists'business interest demand, take a theoretical analysis of the distribution of surplus value in the capitalist market economy. This mode reflects the economic relation between the nature of capitalist economy and its functioning. The backward mode reflects both basic relation of the capitalist market economy and the economic relation at the functioning level. The backward mode demonstrates the logical relation fro why Marx put the analysis of circulation cost compensation in volume one of'Das Kapital'. In the contrary, the forward mode ignores both the investment nature of commercial capitalist's pure commercial circulation cost and the economic interests of industrial capitalist as the main bodies of independent investments. After all, the forward mode is a partial understanding of Marx's theoretical system of circulation compensation. This understanding partially strengthened Marx's interpretation of the source circulation cost compensation in volume two of'Das Kapital', ignores the analysis of ways and paths of pure circulation cost compensation. From the historical perspective, the forward deduction mode of compensation gains dominance in China is due to the fact that our country had been a planned economy with planned distribution and compensation. Therefore, it holds great importance for reform and the construction of socialist market economy in our country by restoring Marx's mode of backward pure circulation cost compensation.Law of commercially necessary labor is the lower limit of commercial labor that could make up merchant's capital (differ from interest earning capital). Commercially necessary labor is not for creating product value and surplus value, it is the necessary labor for realizing the capital function of the commodities. In terms of buying the labor within the limit, compensation is done by adding to the selling price. Judging from the source of this compensation, the wage paid for commercially necessary labor is compensated by deduction from the total social surplus value.Comparing with modes of circulation management in Japan and the US, draw experience from the Chinese economic management structure reform, the target of Chinese circulation management system reform is to build a free merchandise circulation mode under indirect national macroeconomic regulation. The circulation process determination theory shows the development of circulation sector in our country must keep reasonable quantity scale, quality scale and benefit scale. Based on this, the paper finally gives policy advice for our country's circulation sector's development.