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Obsolescence of the Means of Labour, the loss of a part of the value of means of labour regardless of the degree of the loss by them of technological and production characteristics. There are two forms of obsolescence; the first is expressed in the loss of the value of the means of labour because of higher labour productivity in the industries manufacturing them. This does not entail the necessity of replacing operating equipment, because the technical level of both operating and new

equipment are approximately equal. However, extensive use of means of labour with a lower value results in previously acquired means of labour losing some of their value. The second form of obsolescence is conditioned by the spread of better and more efficient machines and mechanisms, which leads to the loss of value of previously installed and less economical means of labour. The use of technologically obsolete means of labour retards the growth of labour productivity. In capitalist society the moral wear and tear of fixed capital is the consequence of the drive of capitalists for excess surplus value. Capitalist competition makes the owners introduce new machinery. This ruins small and medium-sized enterprises. Obsolescence assumes mass scale during economic crises of overproduction. Spontaneous and mass renewal of fixed capital is the material base of the cycle (see Cycle, Capitalist) and periodic recurrence of economic crises of overproduction. To try and reduce losses from obsolescence and to justify the expenses on fixed capital, capitalists set higher rates of depreciation deductions (see Depreciation), lengthen working hours, introduce work in shifts, and raise labour intensity above the normal standards. As a result, working conditions worsen, industrial accidents increase, the degree of exploitation of wage labour rises. Under socialism the moral wear and tear of the fixed production assets is accounted for through the planned regulation, development and improvement of social production on the basis of scientific and technical progress. Obsolete plant is systematically replaced in a planned way by modern and more efficient facilities. This is the necessary condition for raising labour productivity and the efficiency of social production. More intensive use of the means of labour is the principal way of considerably reducing the society’s losses from moral wear and tear. Physical wear and tear (see Physical Wear and Tear of the Means of Labour) and obsolescence are accounted for when determining the terms of functioning of the fixed assets and establishing the rates of depreciation.