ABSTRACT
The purpose of production in a socialist country is to satisfy the ever-increasing needs of the people. Lenin thought that in order to expand reproduction on the basis of advanced technology, it was necessary to give priority to developing the production of producer goods. From 1958 to 1960, because industrial production had developed too fast and capital construction was overextended, 25.5 million staff and workers had been newly added. The substantial drop in food grain production in the three years between 1959 and 1961 was attributed to severe natural calamities at that time. Namely, socialist economic construction must follow objective laws of economic development. The First Five-Year Plan and the proposed Second Five-Year Plan basically followed objective economic laws. The Second Five-Year Plan was formulated under the guidance of comrades Zhou Enlai and Chen Yun as early as the summer of 1956. The First Five-Year Plan and the proposed Second Five-Year Plan basically followed objective economic laws.
