The Fundamental Economic Laws in the Preliminary Stage of Socialism

The fundamental laws in the preliminary stage of socialism is an organic whole of a series of laws, including the socialist basic law with institutional change as its premise, the law of coordinating and constructing markets by state, as well as the law of social surplus value. The former two laws is about the economic behavior of state, while the last one is about market mechanism. The socialist basic law with institutional change as its premise, explain the historical necessity of Reform and Openness, by emphasizing that it is only through changing the relations of production and the super-structure, can productive forces be liberated and developed, and thus people’s needs be met. The law of coordinating and constructing markets by state is the transformed form of the law to develop national economy by planning and in accordance with proportions. The law of social surplus value, by means of covering both the behavior and goal of state-owned and non-state-owned enterprises, explains dynamic efficiency of competitive markets, illuminating in which way markets play a determining role in resources allocation. The full realization of the law of social surplus value depends upon the other two laws, and to some extent being the realized form of the other two laws.