The note for speaking english readers:
Yegor Gaidar,architect of russian capitalist reforms, Anatoly Chubais,architect of russian capitalist privatization,both - First Vice-Premier ministers of the President Boris Yeltsin's Government of Russia at the early 1990's.

THE PREFACE

"There are no forces
which could black out the torch,
lifted by Lenin
in stuffy darkness of the mad world."
(M.Gorky)

This article causes horror in bourgeois professors of economics: to abuse - to lose credibility, to praise - to lose job.

They are capable of pity babble of type only : "there is no interest", "not our profile",refusing to answer in writing categorically.

However, the recognition or refutation of "vulgar economists" (K.Marx) or, even more precisely, "the diplomaed footmen of bourgeoisie" (V.I.Lenin) does not interest of me .

I am assured absolutely for, and their horror is acknowledgement only the present article is a thermonuclear bomb under capitalism which will blow it up, and "the mankind prehistory"(K.Marx) full of dirt and blood will end.

The author.

"Marx's doctrine is omnipotent because it is true."
(V.I.Lenin)

1. "That social order will win which will provide the highest labour productivity."

Even the most stupid apologist of capitalism has not tried to deny this Lenin's well-known expression till now.

If crises of capitalist overproduction are inherent in capitalism, the capitalism deprived of these crises will surpass usual capitalism in labour productivity inevitably.

The social order which will provide more high labour productivity, than capitalism, is called as socialism.

Means,socialism is the capitalism, deprived of crises of capitalist overproduction.

Marx has revealed the nature of capitalist overproduction crises in the work of "Capital", here is Marx logic in the simplified kind.

 2. Why capitalism is doomed to crash, or how Yegor and Tolik have proved Marx's rightness.

Imagine a desert island which there are only two subjects on, we name them as Yegor and Tolik (Russian abridged version of Anatoly,used to children mainly).

Let Yegor is a manufacturer of means of production, and Tolik - a manufacturer of consumer goods. For example, Yegor makes rice and oil, and Tolik is able to cook rise porridge.

Now, Tolik buys from Yegor rice and oil for 1 rouble, cooks two portions of the rise porridge,leaves one to himself, and brings another one to Yegor on sale. Tolik is a capitalist and should get profit, therefore he brings expenses in the price, 1 rouble, and profit, for example, 1 rouble more, and offers Yegor porridge for 2 roubles.  

And here Yegor indignantly shouts: "Parasite,you have given me 1 rouble, and sell porridge for 2 roubles, I do not have so much money!"

And there comes the well-known CRISIS of CAPITALIST OVERPRODUCTION.

Replace only the island with a closed economy , Yegor - with enterprises of "A" group,making means of production,Tolik - with enterprises of "B" group, making consumer goods, add here an economic ballast consist of "social dependents": bankers, lessors, officials, soldiers, old men, invalids and so forth,which aggravate the situation only

(they exist at an expense of deductions - loan percent,a rent, taxes - from incomes of the enterprises of "A" and "B" groups,
after payment of deductions Yegor will have a sum of less than 1 rouble,
"social dependents", having received money, will stand in queue for porridge, but the entire sum of money, Egor and" social dependents" queue owns, will remain equal 1 ruble,
if Yegor and "social dependents" will turn part of the money into savings, the amount , which Tolik can hope for, will be less than 1 ruble, and the situation will be worse),

and you receive real capitalist crisis in a closed economy.
(In a mathematical form the law of preservation of cost discovered by Marx is represented so: cost of the sold means of production equals cost of the sold consumer goods in a closed economy:

When capitalism will capture all the world and there won't be colonies, it will gobble up itself, as a pack of rats.

3. What is socialism.

 Marx has suggested to eliminate the main contradiction of capitalism by nationalisation of the enterprises, abolition of money and product exchange introduction at a basis of ideal formula excluding assignment of profit:"the known amount of labor in one form exchanges on equal amount of labor in another one".
("Yegor" and "Tolik" - the state enterprises,money is not present, Tolik takes away from Yegor rice and oil, cooks two portions of the porridge,leaves one to himself, and gives another one to Yegor. Crisis of overproduction is not present.)

 The attempt to construct socialism at such principles directly has ended with crash to indescribable delight of world bourgeoisie,being turned out to be a consequence of refusal of world civilisation achievement which commodity-money relations are.  

 And here now it is necessary to afflict world bourgeoisie mortally: as some problems of mathematical physics the present problem has two decisions - trivial one and not trivial one. And this last one is a death sentence to capitalism.

Let "Yegor" and "Tolik" be the state enterprises. The state gives out to Yegor the grant in the form of absent rouble (it is enough to give out this rouble to "social dependents" as salaries, pensions,grants and so forth in real economy ).

Yegor has 2 roubles, and he can buy porridge at Tolik.
The state withdraws Tolik's profit at a rate of this rouble after sale and purchase,using the "Tolik" is the state enterprise.

The system reverts to the initial condition: the state has returned the rouble, and exchange of goods between the enterprises of "A" and "B" groups has occured without crisis.

( It is impossible,if "Tolik" is the private capitalist enterprise, since the state cannot withdraw all Tolik's profit.)

Here is capitalism without crises, i.e. the SOCIALISM has turned out.

Three conditions of capitalist overproduction crisis elimination follow from this scheme , we name it as POSTULATES of SOCIALISM in a CLOSED ECONOMY:

 I. Enterprises, making profit, should be in a state ownership.

 II. People's militia (proletarian militia should be main military force inside it) should be main military force in a state capable to discharge of power the heads of the state unequivocally which will try to distribute in private hands the state enterprises capable to make profit.

 III. Other capitalist production relation changes are not required for capitalist overproduction crises elimination.

Now we will explain these postulates.

The first postulate has deeper sense, than can seem. The matter is that "Tolik should get profit"in Marx's scheme,however,it is paradoxical but small enterprises do not bring profit at normal market conditions.

A small businessman can't let himself to employ a managing director,leave affairs and live on profit. On the contrary, he must manage own enterprise personelly, and so named "small enterprise profit" is a small businessman salary as managing director of the own enterprise actually.

It follows small capitalist enterprises do not influence capitalist overproduction crises occurrence and should not be nationalised at socialism. On the contrary, they are socialism integral part according to the third postulate.

There should be those enterprises in a state ownership only if their owners are capable to employ managing director for their enterprise, leave affairs and conduct a parasitic way of life on profit (communists name them "social parasites" not without justification). As appears from Marx's scheme these enterprises generate capitalist overproduction crisis if they are private-capitalist ones.

The second postulate is a consequence of socialism crash history at the end of ХХth century: the armed men-citizens organised in people's militia are capable to protect their socialist choice up in arms only.

It follows from the third postulate that the state enterprise differs from private-capitalist one at socialism only that in the name of the government the state employs managing director to the state enterprise, which derives the maximum profit from it in the state income .

All the rest is as at capitalism: work organisation on manufacture,a competition, free prices,an unemployment, trade unions,bourgeois freedom, multi-party system and so forth, and including a free competition of the state enterprises among themselves and an ABSENCE of PLANNING (planning is necessary in that sense only the proprietor plans own manufacture development).

 The state should watch the private-capitalist enterprises sharp-sightedly: as soon as in any sphere of business they start to get profit, it redeems them or creates the state enterprises there until the private-capitalist ones do not stop to make profit in this sphere.

The capitalist, whose enterprise has redeemed by state, will obtain material reward at a rate of enterprise cost and state gratitude for the contribution to national economy (in the form of an award or a rank),people relation will be replaced from contempt and hatred to respect and gratitude to such capitalists. It will be huge stimulus for businessmen to develop socialist economy for the public good.

As soon as the state enterprise begins incapable to make profit, the state sells it in private hands or liquidates.

The socialist state aspires to be the unique capitalist (the addressee of profit) in own economy.

Certainly, the state is not capable to deprive the private-capitalist enterprises of profit each time moment, but should minimise it with economic measures then it will be tolerant inflation enough for overproduction crisis prevention.

"Where is here the true socialism?" - the orthodox communist will tell.

The above the state profit is, the above a salary of civil servants and workers is, and their work condition is better,public funds are richer, and trade unions and people militia will promote it. The small businessman, competing to the state for a wage labour, will be compelled to increase the salary and improve working conditions to the workers.

 The above-stated allows to name easily Soviet Bolsheviks errors destroyed the Soviet socialism and discredited socialist idea:

 Interdiction of business and nationalisation of small enterprises, planning, liquidation of a private property, the market, competition, unemployment and, in general, capitalist relations of production, people disarmament after civil war,liquidation of bourgeois political freedoms,establishment of party bureaucracy dictatorship etc.

 Infringement of economic laws has led to the most severe terror, degeneration of all spheres of a public life, transformation of party bureaucracy into new bourgeoisie and socialism crash.

4. Gaidar and Chubais's fatal mistakes.

Let's consider the aforesaid more common positions from.

Let's divide a closed economy in two sectors: industrial one which makes the goods and services, and non-productive one which consist of the unemployed, soldiers, pensioners, scientists, students etc. The non-productive sector requires the goods and services prodused by industrial one, and money is necessary for this purpose.Here is not to manage without the state.

The state solves this problem in four ways.

 1. A colonial way.

 The state allows industrial sector to sell production in other country, an economic colony,taxes the sale and supports non-productive sector for this account.

 2. A socialist way.

In this case the enterprises, making profit, are in state property. The state prints money at a rate of cost of the goods and the services necessary for non-productive sector, and gives out money to it in the form of salaries, pensions, grants, etc.

After the non-productive sector will get the goods and services from industrial one, the state withdraws all profit of the state enterprises (and all industrial sector as a whole).

This profit is equal in accuracy of cost of all goods and the services got by non-productive sector since economy and industrial sector is closed, expenses outside are not present, and cost of production sold outside is net profit. (The scheme "Yegor - Tolik - savages", only as "savages" is non-productive sector, "Yegor", "Tolik" are the state enterprises, and the state withdraws all profit at "Tolik".)

3. A capitalist way.

The capitalist state uses a combination of two above-named ways: it can withdraw a part of private-capitalist industrial sector profit in a type of tax only which it prints money under, and covers other part of industrial sector profit at an expense of the export taxation.

 4. A way of underdeveloped countries.

If the capitalist state does not make ends meet by means of the last way,it tyres out the part of the non-productive population which cannot ensure with vital means in a ghetto by means of hired army,police and gendarmerie.

Yeltsin, Gaidar and Chubais have directed Russia on a way of capitalist development.

To become the developed capitalist country it is necessary to Russia to transform other countries into its economic colonies. For this purpose it needs to press out USA, Europe,Japan and China from their markets, and it is impossible. For in this case it is necessary to create science and manufacture advanced at the front lines in the world and when the majority of the population degenerates and dies out in the conditions of a social ghetto, it will be simply impossible to collect quantity of talented people necessary for it.

A quantity of workers occupied in industrial sector decreases with development of society productive forces and labour productivity increase, and the non-productive sector grows. It aggravates a situation even more.

Simultaneously it is necessary to dispel a myth created by official propagation the Russian people are rich fantastically thanks to the natural resources.

Russia exports, approximately, 200 million т oil annually, i.e. 1,5т in recalculation on the inhabitant of the country. Now the 1т oil price in the world market, approximately, is 550 dollars, accordingly, 1,5 т oil - 825 dollars.

Thus,it turns out 825 dollars a year,70 dollars a month accordingly on one inhabitant of Russia from oil export. The lion's share of this sum will be appropriated by oligarchs and the state, and the ordinary Russian will be reached about 20 dollars a month. Incomes of export of other raw materials, as a whole, do not exceed incomes of oil export.

Thus, the inhabitant of Russia receives from export of raw materials of an order of 40 dollars a month. If Russia will lose the manufacturing industry and commodity agriculture,inevitable barbarization and extinction waits for it.

Capitalism has generated incessant economic and political crisis in Russia with monstrous losses of material,human and intellectual resources which will end with inevitable accident for Russia.

The primary threat is the inability of Russian capitalism to master the technological legacy of the Soviet Union, when, as a result of the degradation of the country, nuclear energetics or nuclear weapons may get out of control .

5. The cause of world capitalist crises and the future of humanity.

Take a look at the economy of the entire Earth, which is closed.

Let unite all capitalists of the world in a group or class, we will call "World capitalist", all capitalist enterprises of the world - in a group , we'll call "World Enterprise", all employees who work in the capitalist enterprises of the world - in a group or class, we'll call "World employees".

During a specific period, for example, the year, the World Enterprise produces a quantity of goods, for its production World capitalist pays World employees wages, which will be denoted by "W".

The world economy and World Enterprise are closed (it has no allied suppliers outside Earth), therefore, the cost of manufactured goods is equal to W + P, where P is World capitalist profit.

World capitalist cannot sell all goods World employees because W, sum of their wages, is less than the cost of the goods. This is the reason of the world capitalist crisis.

Scramble between capitalists will be inevitable at the end of each world capitalist crisis for who will remain with money, and who will remain with papers like depreciated government bonds.

Capitalists use more destructive weapons in conflicts each capitalist industrial cycle after and they will destroy themselves and humanity sooner or later .

Therefore, either humanity will destroy capitalism, or capitalism will destroy humanity.

In conclusion, we will apply technique, known as the "check at infinity" in theoretical physics.

There are two obvious tendencies in capitalism ( proved by Marx):

1. depopulation of production, i.e. replacement of people with machines, robots, computers,

2. monopolization of markets or reducing a number of capitalists (now called as "globalization").

Let extrapolate both of these trends into the infinite future.
We obtain:
robots will produce everything, including robots to replace itself on the Earth in the infinite future. All production of goods on the Earth will turn into one company.The only capitalist - World Boss will be its owner.
Other Earth inhabitants will be unemployed and, consequently, will not have money to buy goods of the company.
We get an immediate collapse of the economy and the downfall of capitalism.

What is socialism:
as a result of world revolution the World Boss was expropriated - the company was nationalized and became the state one. The state prints and gives money the unemployed as allowances, stipends, pensions, etc. The population buys goods from the company. All of the money accumulate at its accounts.
Since the company is closed (it produces everything independently, wages are not paid (robots work), i.e. the company has no costs), entire income of the company is net profit. State withdraws all the profit from the company, using the fact it is the state company, and gives the unemployed money (which are exactly equal to the printed ones) as allowances, stipends, pensions, etc.
And all repeats again.

Such an economy has no contradictions and can exist indefinitely. That is socialism - the main discovery of Marx.

And all these "yeltsins", "gaidars", "chubaises", etc. are marauders at sinking "titanic" of capitalism.

 20.05.2009

 Samarin E.F.

 Moscow.

 P.S. "Theory becomes a material force when it has gripped the masses." K.Marx.
Conclusions of present article coincide with conclusions of the Manifesto of Communist party of Karl Marx and Friedrich Engels absolutely precisely.
The article is permitted to publish for free while preserving the authorship.
Extend this article and the reference to it - thereby you will accelerate the crash of the Russian and world capitalism.

Excuse me,please,for my bad English. I hope to improve my English in future.Author.