ABSTRACT
One of the most difficult problems in socialist political economy and in the practice of socialist management is the economic stimulation of production. The political economy of socialism considered socialist production relations predominantly as the direct relationship between man and society as a whole. The enterprise acts as an independent economic subject in the internal socialist market, in its relations with other enterprises and with trading organizations. The enterprise will also acquire its own source to augment the wage fund through part of the profits that are deducted for the material incentive fund. The distribution of profit to create centralized income for the state and to form enterprise funds has become major and decisive. Economic relations between enterprises play a special role in stimulating production. The contradiction between wages and profit where a system of material stimulation is in operation finds its solution.
