ABSTRACT
This chapter discusses what profit in the socialist economy is, and what role it should play in the management system of the socialist planned economy. In the socialist society there are two ways of improving the staff and workers' standard of living — increasing wages and reducing product prices. And these two means are under the unified control of our government and not determined by individual enterprises. The success of enterprise management should be judged on how much costs can be reduced, how much profit sent to the state is increased, and how much the share of labor and product for society is raised. But socialist enterprise profit is wealth produced by the staff and workers of production enterprises for expanded social reproduction and the public needs of society. In the socialist society the various enterprises and production departments are not allowed to compete for profit.
