Relations of Distribution

Relationships forged by men in the activity of distribution of products. It an important aspect of the relations of production or economic relations of society, and at the same time, an independent economic relation relative to the relations of (direct) production, relations of exchange and relations of consumption.

Relations of distribution are embodied in the principles, forms and systems of the distribution of products, the position of men in the distribution of products or the degree to which they dominate the activity of distribution of products, the relations of material interests formed by the distribution of products and their nature, etc.; embodied in the primary distribution and redistribution of national income as well as the distribution of personal income in the entire distributive activities or the whole process of distribution.

Relations of distribution reflect the real relations of economic interests, and certain relations of income distribution confirm and bring up certain interest groups and their mutual relations. Relations of distribution depend entirely on the relations of production. The mode and nature of distribution are determined by the forms and nature of the property in the means of production. For example, the capitalists’ ownership of the means of production determines that they appropriate the vast majority of products created by the workers, while the workers can only receive that portion of products that sustains the reproduction of their labor-power, and determines that capitalists participate in the distribution of products according to the principle that capitals of equal size yield equal profits, and the laborers participate in the distribution of products according to the principle of equivalence of the value of labor-power; socialist public property determines that no one can appropriate the results of labor of others without compensation, that the right to make decisions on distributive activities rests with all laborers, laborers’ collectives or their representatives, and that the rule of distribution according to contribution and other forms of distribution conducive to the development of production are implemented.

Relations of distribution have two levels. First, the basic distribution system determined by the nature of the property in the means of production in a certain society. It reflects the requirements of this property in the means of production, and at the same time is itself a concentrated embodiment of the relations of distribution of society of a specific nature. Second, the distribution system consisting of concrete form and structure of distribution, form and structure of income and the means, mechanisms, and regulatory measures by which the distribution is achieved. The concrete distribution system depends immediately on the basic distribution system, but is ultimately still conditioned by the property in the means of production and the level of development of the productive forces. The concrete distribution system does not immediately embody the nature of specific relations of distribution of society. Under the same property in the means of production and basic distribution system, there can be multiple distribution systems, while different properties in the means of production and basic distribution systems can also have certain common forms of distribution, forms of income, instruments of distribution, and regulatory measures of distribution. Relations of distribution are a unity constituted by the basic distribution system and concrete distribution systems.

Relations of distribution are the chief object of inquiry of distributive economics. Marx pointed out: “The relations and methods of distribution appear, therefore, merely as the reverse sides of the agents of production… The subdivisions and organization of distribution are determined by the subdivisions and organization of production. Distribution is itself a product of production, not only in so far as the object is concerned… but also as regards its form, since the definite manner of participation in production determines the particular form of distribution, the form under which participation in distribution takes place.”