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Distribution
 

Distribution, an aspect of relations of production linking production and consumption, a necessary phase in the process of the reproduction of the social product. It incorporates the distribution of means of production and consumer goods, the necessary product and the surplus product. The nature, principles, and forms of distribution are dictated by the prevailing mode of production. Under capitalism, distribution is antagonistic because the means of production are in the hands of private owners and serve as tools for exploiting the working people and enriching the exploiters. Much of the new value, created by the workers, is usurped by the capitalists. Therefore the working people have to fight continuously to ensure their subsistence. In socialist society, distribution is planned in the same way that production is. Of vital importance is ensuring balanced and stable economic development, and distribution, in response to social needs, of the means of production and consumer goods among units and sectors of social production, between the material and non-material spheres, the consistent application of the law of distribution according to work done, etc. Distribution of the aggregate social product is the starting point and material basis of expanded socialist reproduction (see Reproduction, Socialist), and dictates its proportions and rate. Part of the aggregate social product is used to restore the consumed means of production. Another part comprises the national income which is distributed to benefit the entire society by maintaining the optimal ratio of accumulation and consumption (see Accumulation Fund; Consumption Fund). The part of the national income created by necessary labour is distributed through the remuneration for that labour according to its amount and quality and through social consumption funds. As a consequence, the entire product created by the working people is distributed in their interests. Under socialism, distribution is an important incentive of social production. There is no antagonistic conflict between socialist production and distribution. The non-antagonistic contradictions which arise as they interact are consciously and systematically overcome by society through the constant improvement of distribution relations as the nature and scale of production change. The groundwork for the introduction of the communist principle of distribution is prepared by the all-round development of the forms of distribution prevalent in developed socialist society.

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