A Socialist Empire: The Incas of Peru

By Louis Baudin; Katherine Woods et al. | Go to book overview

9
The Equilibrium Between Supply and Demand

We now come to the essential problem that every socialist system must solve: How replace the mechanism of the pricing process and achieve by way of authority an equilibrium between supply and demand? The retrenchment of needs and the regulation of production make it possible to simplify all computations and to proceed to calculate approximately the total demand and the total supply at a given moment and as anticipated throughout the year.

Such calculations require statistical data. In the light of the figures obtained, the government will take the necessary measures to procure the quantity of products sufficient to meet those needs which are deemed to be the irreducible minimum and will have these products delivered to the places where they are to be consumed. To keep its forecasts exact, it will forbid any change of residence on the part of anyone save in exceptional cases which it will be obliged to take into account. But as it is not infallible, and as chance may upset its calculations, it will create reserve stocks as a means of correcting any unanticipated imbalance. The transmission of the information it receives and the orders it sends out will require a network of communications and the establishment of a corps of messengers. In addition, since personal interest is to a

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