In order to describe the peculiarities of social labour differentiation and its various forms, let us split the Production cycle into the following stages. First, humans have to obtain resources (by growing, rearing, catching them). Then these resources are processed (i.e. are transformed into a sale-ready product). Afterwards, the products are distributed (transported, advertised, sold, etc.). And only then they may be consumed by human beings. These are the stages of the Main production complex that forms the trunk of the social production organisation tree, as well as its roots and nutritional medium.
But these factors alone do not define the nature of commodities production process. Efficient functioning of the system described above it is essential to employ Labour ensuring production factors. This means development of science, which broadens human capacities and finds the best ways of natural potential realisation. Besides, the production complex should be supplied with energy (energetics), production means should be reproduced (i.e. machines should be built and technologies should be implemented (mechanical engineering). Industrial premises, roads and communications should be constructed; transport and communication means should be updated. The system should be protected from aggression by country’s neighbours or even certain citizens (law enforcement agencies and defence). Well-coordinated work of this complex organism of labour differentiation is supported by finance and trade that assure exchange of commodities between different economic actors. The process described above cannot be productive without reasonable management. Moreover, special measures to protect the natural habitat of humans should be undertaken (ecology).
However, all this is not sufficient. For human beings are not only the object every economic system serves, but also the main production force of economics. This is why there should also exist Labour ensuring human factors. These include, first and foremost, human procreation and reproduction of work force, without which any economic activity becomes senseless and unfounded. Besides, this category embraces the upbringing of the population and shaping of its moral principles through increasing awareness, developing culture, and giving education. For the work force to be productive, it should be capable of working and healthy (healthcare). It should practice physical education and sport, and have access to true information. As opposed to mechanical labour factors, human beings need rest and useful leisure – prerequisites of any production activities. Besides, people should continuously broaden their knowledge regarding the vision of themselves and of the World; the human soul should be harmonized and cured to reinforce man’s moral principles, make him more human (religion), etc.
The functioning of this system of social labour differentiation and cooperation is determined by the state of production forces; however, it is evident that without the factors listed above, neither efficient work, nor normal vital activity of humans are possible in the given conditions. Therefore, poor functioning of the mechanical engineering sector impacts social labour results as much as low qualification, poor culture, low morals, and poor heath of the workers do. Moreover, none of the labour types is self-sufficient, and cooperation is what makes them efficient. At the same time, one should not forget that no type of labour except Main productive labour has any value alone. Only increase of labour by way of increasing the quantity and the quality of commodities can justify its existence.
Under socialism, only labour in the sphere of material production was deemed productive, while other types of labour were considered auxiliary. Under capitalism, only labour that generates income and profit is seen as productive; there is no demand for other types of labour. Within harmonious economics any labour is considered productive as long as it is socially required (academician S. G. Strumilin [37]). And any labour is declined the qualification of productive when it does not contribute to increasing labour productivity. Such labour should be done away with.
In accordance with the harmonious principles, the key problem consists in assuring coordinated functioning of all the links of the social labour distribution chain in order to minimize human efforts employed for production of all types. Otherwise, the system presented in Figure 1 turns into a collection of poorly related elements, of selfish and competing industries, enterprises, and individuals. The struggle of such different economic sectors that do not share any executive functions is indeed impossible. What could healthcare and mechanical engineering, science and education, culture and transport compete for?
Then the economic symphony all these parts are to perform turns into a cacophony, and destructive competition takes place of coordinated actions. This is the main issue with the social production organisation, and the efforts of all producing structures as well as individuals should be directed towards resolving it. It is evident that neither money accumulation, nor the income of intermediaries or renters alone increase the productivity of social labour. On the contrary, they distract part of the work force from real values production, and creates additional hindrances for it.
From the graph presented above it follows that only the proper functioning of all of the parts of the system allows favourable conditions for general economic prosperity. If the work of any of the parts is disturbed, the total system efficiency drops. While capitalism prioritizes the financial sector, socialism puts production sector above all. Neither of the approaches contributes to better functioning of economics.
1.3.2. Social labour productivity (SLP) as key indicator of state functioning
In order to work out measures for increasing the productivity of human labour, it is necessary to select a single criterion for the functioning of the entire economic system presented in Figure 1 as a self-consistent whole. It would be the first step towards organizing efficient work of individual structures. Without such indicator, any human or enterprise activity would be subordinated to limited market objectives, and would lose its global direction. Only the existence of a criterion with all of the mentioned qualities, capable of bounding all economic sectors together, makes it easy to understand what is right and what is wrong in the society organisation; where progress is made and where it is substituted by regression; what should be done and what should be avoided. Thus, this criterion should serve as a compass to indicate the right direction and to warn about any deviations.
Unfortunately, not all modern economic macro indicators, such as GDP (gross domestic product), GNP (gross national product), or national income, possess to a sufficient extent the qualities discussed above, therefore, they cannot serve as valid criteria of total economic productivity. The reason is that these indicators are tightly related to money, the financial sector and income, they are all profitability-oriented. However, money is an ambiguous category.
In fact, GDP – general indicator of goods and services production – is based on the aggregate wages in a country, income and rent, profits and amortization payments, that is, a real mixture of different things. As the result, it depends both on sources of real values and on others that utilize them, such as interest rate, property and rent, – and generate nothing real at all.
In fact, it is estimated that in the past 1,000 years the GDP of some countries has grown 100- to 500-fold. Does this mean that their population has