On the theoretical premises and fundamental bases of distribution according to factors of production

Purpose The practice of distribution according to factors of production demands a correct theoretical explanation. The author argues that such distribution is a necessity arising from the actual operation of social productive forces and production relations. Design/methodology/approach The implementation of distribution according to factors of production under socialist market economy conditions is objectively necessary. This necessity is premised on both the combination of elements of productive forces and the interest relations arising from them, as well as on the existence of ownership relations that form the foundation and core of production relations. The distribution according to factors and the distribution according to work cannot replace each other. Findings The theoretical basis for distributing income according to factors should be attributed to the source of social wealth, namely, use-value. Adhering to the principle that labor and other factors (including natural elements) jointly constitute the source of wealth represents a fundamental viewpoint in Marxist political economy. Originality/value This paper proposes a generalized theory of distribution, arguing that natural factors likewise possess the right to participate in distribution. This perspective is conducive to extending the theory of distribution according to factors to its logical conclusion and supports the sustainable development of the social economy.