ABSTRACT
Liu Shao-ch'i championed the fallacy "circulation determines production. He simply started from circulation with the market as the focus in a vain attempt to use the law of value and the supply-demand relationship to adjust and regulate production. Only when it is absolutely necessary should production be suitably adjusted through plans. The fallacy "circulation determines production" is bankrupt. Under the capitalist system the sole purpose of commercial operation is the pursuit of maximum profits. Socialist commerce does not aim to make profits, but to develop production and insure supplies. What Liu Shao-ch'i wanted was to model socialist commerce after capitalist commerce. The fallacy "circulation determines production" is bankrupt. Some of comrades harbor a simple commercial viewpoint. In short, if Liu Shaoch'i's "profits in command" were carried out, socialist commerce would surely be transformed into capitalist commerce. "Profits in command" must be thoroughly criticized.
