the part of the total social product used to replace consumed means of production. In a physical sense, the replacement fund comprises the equipment, tools, and materials used by labor. In value terms, it is embodied labor in the form of the amortization fund and the value of the circulating productive capital used to replace the materials consumed in the production process. The other part of the total social product, the part remaining after expenditures for replacement have been made, constitutes the national income.
With advances in science and technology and increases in the productivity of labor, it becomes possible to use the replacement fund as a resource not only for simple replacement but also for accumulation (investment). In 1975 the replacement fund accounted for 57.9 percent of the total social product in the USSR.
P. V. TAL’MINA