What is the economy. Spheres of economy
Economics is a social science that studies how to properly use limited resources in order to satisfy unlimited human needs.
Economics generally interacts with concepts such as production, distribution and consumption of goods and services.
It examines how people, businesses, governments and countries allocate their available resources to meet their needs. At the same time, the economy is simultaneously trying to understand what and how should be organized to achieve maximum returns.
The economy is usually divided by m a croeconomics (focuses on how it behaves general economy- market systems operating on a large scale) and m and croeconomics (focuses on the behavior of individual consumers and businesses).
The word "economy" comes from a combination of two Greek words: "oikos" - house, economy + "nomos" - rule, law.
Types of economy
The type of a country's economic system is determined by how resources are allocated in that economy. There are four different types of economics.
Traditional type of economy
This system is the oldest type of economy in the world and many countries of the world still operate according to it. These are mainly countries of the second or third world, and are closely linked to the land, usually through agriculture. Often, with this type of economic system, a country's surplus is rare (often the country spends more than it receives). It often happens that these societies do not have access to technology and modern medicine.
Team type of economy
The command economic system is also called "centralized". This economy was another foundation of communist philosophy.
Centralized power controls a significant part of the economic system, that is, most of the management decisions are made by the central government (for example, as was the case in the USSR).
Market type of economy
This type is considered a free market economy, where firms and households act in their own interests. Thus, it is determined: how to allocate resources, what goods to produce and who buys them. This type of economy is the opposite of a command economy (when the central government makes a profit).
In this type of economy, there is a separation of government and market. In theory, there is no government intervention in a pure market economy. However, this is not so, in the world there is really no absolutely free market economy.
Mixed economy
This is a combination different types economic systems and is a cross between market and command economies. The market is often more or less free of government ownership, apart from a few key areas (eg transportation, defense, and railways).
Economy as an economy
The economy as an economy is a management system that provides society with benefits of a different nature; includes branches of material production (industry, transport, etc.) and non-material sphere (culture, education, etc.).
Under economic activities I mean the work of people throughout the economic process to meet human needs.
Economy levels
Micro- and macroeconomics are considered the most important, but the following levels are often distinguished:
- megaeconomics (activities in the world economy, i.e. the world economy);
- macroeconomics (the activity of the national economy as a whole);
- mesoeconomics (activities in intermediate systems or sectors of the national economy; industries and regions; for example, the military-industrial complex);
- microeconomics (activities of individual economic agents; for example, firms);
- nanoeconomics (activity of one individual).
Three main theories of economics
The three most important economists are Karl Marx (1818–1883), Adam Smith (1723–1790), and John Maynard Keynes (1883–1946).
The Invisible Hand of the Market by Adam Smith
Having made an in-depth analysis of the world of business relations, Adam Smith came to the conclusion that each person in society acts in his own interests, and can produce and buy the goods and services that he needs.
He called this mechanism of self-regulation "the invisible hand of the market" in his book "A Study on the Nature and Causes of the Wealth of Nations" (published in 1776).
For example: a butcher, baker, or candle maker does what they decide (each produces as much meat, bread, or candles as they think is right).
Each customer buys as much meat, bread or candles as his household needs. And all this happens without their consultations with each other or the permission of the state. That is, it is a free market economy in action.
When Smith made this conclusion, he founded the classical economics we know.
The main idea of classical economics is that the government's attitude to the market based on the principles of justice allows the "invisible hand of the market" to guide everyone in their economic aspirations, create the greatest good for the largest number of people and thereby stimulate economic growth.
"Exploitation of Labor by Capitalists" by Karl Marx
Karl Marx, a German philosopher, economist and political scientist, viewed capitalism from a more pessimistic point of view. In a free market, Marx saw instability, strife, and decline.
Marx believed that once a capitalist (a person with the money and organizational skills to build some kind of factory) organizes the means of production, all this value actually begins to be produced by the labor of oppressed workers.
Marx stated in his work "Das Kapital" (1867) that the capitalist makes a profit through the exploitation of labor, without paying additional labor power for the value that it produces.
Marx saw this exploitation of labor as the foundation of the class struggle and at the same time the foundation of capitalism. He also believed that this exploitation would be the death of capitalism. He believed that division and strife intensified as businesses expanded.
At the same time, according to Marx, in the end, society will come to a system of two classes, in which there will be only a few rich capitalists and a huge number of oppressed, low-paid, disadvantaged workers.
Marx believed that the fall of capitalism would come in the future. He believed that society would begin to move smoothly towards communism, in which workers would own the means of production and, therefore, would not use their labor for profit.
Marx's teachings had a huge impact on many societies, including the USSR in the twentieth century.
Keynes's "Government Aid to the Economy"
Keynes expresses his opinion about the enormous role of government in the capitalist economy. He wrote about this during the Great Depression in the United States (unemployment reached 25 percent, millions of people lost their savings and jobs). Nobody knew how the country could get out of the depression.
23.07.2019
In a word " economy"imply the economic activity of mankind, as well as all relations associated with the production and distribution of goods and services. Translated from the ancient Greek language, this term means maintaining household... For the first time the word "Economy" appeared in the fourth century BC. The ancient Greek scientist Xenophon described this term in his work "Domostroy".
Today, the economy is considered as a system public relations from the standpoint of the concept of value. The most important function of the economy is the ability to constantly create resources, without which all humanity cannot do without, and without which it cannot develop. One way or another, but without the help of the economy, a person will not be able to satisfy his needs, especially when it comes to a world with limited resources. The economy itself is a rather complex but all-encompassing organism. It is this organism that allows each person or society as a whole to function successfully.
Inflation, deflation and other economic indicators
Some economic indicators... These include deflation, capitalization, living standards and others. Inflation is an unplanned increase in the cost of goods and services. Inflation leads to the fact that over time, for the same amount of money, you can buy much less goods. Zimbabwe is an example of a state with high inflation. Deflation, on the other hand, is exactly the opposite process, when the general price level decreases. Deflation is much less common and tends to be seasonal. Deflation is common in Japan.
Capitalization is an estimate of the value of a company, which is calculated based on the annual profit, as well as the fixed and working capital of the company. As for the standard of living, this term means the degree of satisfaction of human needs with goods and services in one unit of time. As a rule, real income per capita is used to determine the standard of living.
One of the most important terms in economics is profit. Profit is the positive difference between the amount of income and the amount of expenses. It is profit that is the main indicator of the result of the company's activities. When calculating profits, it is often taking into account the cost price, the indicator of which is deducted from profit (and income in particular). Cost is an estimate of the cost of resources that are used in the production of a good, as well as the cost of creating the good or service itself.
World economy
Economic science is usually divided into microeconomics, macroeconomics and the world economy. Microeconomics acts as one separate enterprise. It is microeconomics that can explain how economic solutions on the most lower levels in particular, how buyers decide to buy and how their choices affect the prices and earnings of companies. Microeconomics can also explain how firms form the number of workers, as well as where and how much they need to work.
Macroeconomics studies how the economy functions as a whole. The creator of the modern theory of macroeconomics is John Keynes. This concept includes, for example, the national economy, which is a long-established set of all industries and industries of the state. Macroeconomics deals with questions that microeconomics cannot answer. The main problems that macroeconomics deals with are economic growth, price levels, etc. As for the world economy, it is a multi-level and global economic system that unites many national economies states of the whole planet. This is done with the help of the international division of labor on the basis of the system of international economic relations. One way or another, the world economy is the totality of all national economies. In addition to national economies, the global one also includes transnational corporations and financial and industrial groups, large exchanges and entrepreneurs, as well as international economic organizations( and etc.). World economy directly related to the geography, history and ecology of the planet.
Market economy
Today it is customary to allocate four dominant economic forms... These are market, administrative-command, traditional and mixed economies.
A socially oriented market economy is an economy characterized by a variety of forms of ownership, free enterprise, market pricing and contractual relations between entities. The influence of the state on the market economy should be minimal. The most important factor in a market economy is market self-regulation.
Speaking of a market economy, one cannot fail to mention the open economy, which is so characteristic of market relations. An open economy is an economy that is most effectively integrated into the world economy. Moreover, each entity in a state with an open economy can import or export goods, as well as conduct various financial transactions. Currently, there are small and large types of open economies. The first type means a state that seriously affects the world and international market... The second type is typical for small states with a small economy that is not able to critically influence the processes taking place in the world market. The most important criterion for an open economy is a favorable investment climate of the state.
Planned Economy
To some extent, the antipode of the market economy is the administrative-command or planned economy. A planned economy is a type of order in which all material resources belong to society, as a result of which they are distributed centrally. This leads to the fact that individuals and businesses are obliged to act exclusively according to the plan. The administrative-command system is characteristic of countries with a socialist system. In particular, such an economy was in the USSR. A feature of planned management is that government agencies fully control the entire volume of products produced, and in their own competence, the cost of products and the size of employees. The advantage of such a system is the almost complete absence of unemployment and much less social stratification than in a market economy. However, at the same time, there are enough shortcomings: the employee and manufacturers are deprived of any incentive, which means that the products themselves will not be of very high quality. In addition, the planning process is quite time consuming. In addition, a state that uses a planned economy is not able to respond quickly to the latest developments that should be introduced into industry.
Traditional and mixed economies
Traditional economics is a type of economic system in which land and capital are in common ownership, and what to do with them is decided on the basis of tribal or semi-feudal ties. One of the most characteristic features of the traditional economy is subsistence farming. Her distinctive features are the most primitive technologies and the predominance of manual labor. The traditional economy is characteristic primarily of a primitive society. However, in some regions of the planet, it has survived to this day - in particular, this applies to the poorest Latin American, African and Asian states.
Also, economists distinguish a mixed economy. This type of economic system includes not only private, but also public ownership of the means of production. As a result of the activity of such an economy, any entrepreneur can dispose of his capital, but he will still be partially limited by the fact that the state will give priority in all issues.
Transitional (transformational) economy
Speaking about economic systems, it is also worth highlighting some others. In particular, one cannot fail to mention the economy in transition. A transitional economy (or, as it is also called, a transformational economy) is an economy that moves from one system to another. During this process, the entire socio-economic system is radically changed. In addition, property relations and much more are being transformed. An example of a state with an economy in transition is Russian Federation, in which there is a transition from the Soviet administrative-command to a market economy. One of the most important features transition economy is to obtain a share of income in the shadow economy.
The shadow economy is an economic activity that is strenuously hidden from both society and the state. Such activities are outside the accounting and control of the state. It cannot cover the entire economy, but it can cover a significant share of the economy, up to 60 percent. The shadow economy often includes various types of criminal economies. In other words, the shadow economy is a type of relationship between citizens of the state in which they develop spontaneously and at the same time bypass the laws existing in the state. Such income is not taxed, which causes serious damage to the state economy. Any tax evasion can be considered a manifestation of the shady economic activity.
State regulation of the economy
Any government seeks to influence the economy of its state in one way or another. This is manifested in the state regulation of the economy. State regulation of the economy is manifested in the presence of a complex of various measures that the state uses in order to adjust the main economic processes. In particular, the state should be responsible for the budget and the taxation system. Also, the state regulates foreign trade and income distribution. Monetary policy remains with the state. The two main mechanisms for regulating a market economy are fiscal and monetary policy.
Institutional economics, which is a branch of economics that studies the role of public institutions in shaping economic behavior, is worth mentioning separately. Institutional economics explores the interdependence of change with a wide variety of problems that it studies economic theory... This term was first introduced in 1919. Walton Hamilton became its author.
For the institutional economy, the modern market is the result of a complex interaction of several different institutions, which can be people, companies, and even entire states. You can also include here social norms... The basic concepts of institutional economics are learning, rationality and evolution.
Economic recession
In spite of everything, any state is characterized by small economic recessions in production and economic growth rates. Such recessions are called recessions. It is characterized by a lack of growth, or even its decline. The economic recession is one of the phases economic cycle that comes after the boom. As a result of the recession, there is a massive drop in stock indices. Insofar as international economy states, as a rule, are interconnected, a recession in one country leads to a similar recession in another country, which can lead to a crash on the world stock exchange.
There are a variety of reasons why a recession occurs. As a rule, they are explained by the presence of business cycles in the world economy. However, the reasons for the recession in Western countries and, for example, in Russia are different. In particular, the American recession is associated with a fall in investment levels and a decrease in the efficiency of the information technology industry. The Russian recessions of 2008 and 2014 are directly related to the decline.
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Hello dear readers of the blog site. A person's needs are immeasurable (the more he has, the more he wants).
Anytime, even if you are shod, dressed and have a roof over your head, you dream of something else: a new smartphone, a fifth pair of shoes or a tie clip.
Wherein financial position does not play a big role. One wants to get a ticket to the cinema for 200 rubles, and the other wants to buy a watch for 1 million dollars.
We have a consumer society, and the whole economy is built around this... But what is it? ? What is she studying? Let's figure it out together.
Definition of the economy and its history
Economy is economic activity aimed at meeting the needs of people and society as a whole by creating and using the benefits of life.
The Cambridge Dictionary defines the economy as a system of commerce and industry that harnesses the wealth of a country.
Also called economics complex of scientific disciplines studying the production of goods and services, their distribution and consumption. V English language the word economics is used to define economic science, and economy is used for the economic system.
As long as someone is engaged in the supply and distribution of goods and services, there is also an economy. Its development is related to development.
How the economy has changed over the years
The ancient economy was founded subsistence farming... The basic needs were met with internal resources. Exchange, if it existed, took place without the medium of money, by means of simple exchange trade. The social division of labor was absent or underdeveloped. In its pure form, subsistence farming was developed in a pre-class society.
With the development of society and the growth of the division of labor in cities, and sometimes in rural communities, there appears commodity production... In the Middle Ages, the exchange of products takes place through trade. Silver, bronze, copper, gold are used as currency.
"Economic epochs differ not in what is produced, but in how it is produced, with what means of labor."
K. Marx
Capital is used to seize land and then return in the form of goods. Trade enterprises and the first banks appear. Understanding what economics was during that period primarily encompassed trade.
With development government controlled the governments at the time began to try to control trade... They introduce customs duties. Start to work public sectors economy. Big bankers finance national projects and wars.
From this period, the economy becomes national and is considered as the economic activity of citizens.
Has led to profound changes in agriculture, manufacturing, mining, transport. She covered almost all aspects Everyday life person.
The system of production and division of labor facilitated the mass production of goods, which led to the stormy economic growth ... The onset of the Industrial Revolution marked an important turning point in human history.
After two wars and the devastating Great Depression, politicians were looking for new approaches to influencing economic processes. Instead of the previously prevailing theory of free trade, governments have adopted the view of tighter government control over markets.
By manipulation aggregate demand states began to soften economic problems... This policy in the late 1950s led to a new economic growth in America and Europe, called an economic miracle.
On the present stage development all big role in economic processes it acquires the “service sector”. The proliferation of Internet technologies is driving the growth of the importance of e-commerce and e-business. This leads to a blurring of borders between countries and emergence of new models of economies different from traditional ones.
Economics as a Science - What Does It Study
"Economics is the art of satisfying limitless needs with limited resources."
Lawrence Peter
The emergence of economic science is associated with the limited resources used to obtain benefits. The inability to satisfy unlimited needs puts the subjects (households, companies, states) in front of a constant choice:
- What to produce?
- What technologies to use?
- Whom and how to attract to production?
- Who are the results of the work intended for?
Finding effective ways to spend resources to improve the well-being of citizens and society as a whole is the main function of economics.
The subject of study is the subjects of economic activity - people, individual farms and society as a whole. Therefore, the economy classified as social sciences... Economics or economic theory is the knowledge of the motives, actions of people in economic activity, the formulation of the laws of management.
In terms of the scale of research, macro- and microeconomics are distinguished. Microeconomics focuses on individual consumers and producers. It can be a person, a business, or state organization... studies how people trade with each other, as well as the supply of goods.
Examines patterns at the level of an industry, state, or the world as a whole. Topics covered include government fiscal or monetary policy, level, changes in gross domestic product, business cycles that lead to a boom or decline in production, depressions.
7 scientific schools of economics that turned the world
"Economics is extremely useful as a form of employment for economists."
John Kenneth Galbraith
Economics as a science has come a very long way. It is believed that the word "economy" was invented by the ancient Greek poet Hesiod (8-7 centuries BC), who wrote that "to overcome scarcity, labor, materials and time must be properly distributed."
Translated from Greek, the term means "laws of housekeeping", from "oikos" (οἶκος) - house, property, economy, and "nomos" (νόμος) - rules, law. The problems of the division of labor, the formation of value, the circulation of money, wealth, the creation of an "ideal" society were considered by ancient scholars. Aristotle considered economics the science of wealth.
The treatise "Economics" (Oikonomics) of the Athenian historian and politician Xenophon has survived to this day, which proves the importance of science, and also describes various methods of farming and farming.
1. Mercantilism
The elementary theoretical school in economics appeared in the 15-17th centuries AD. NS. and was called. Mercantilists equated wealth with money. Representatives of this trend suggested increasing the wealth of citizens and the state by accumulating gold and silver.
To achieve the goal, the rulers were recommended to expand trade and save precious metals in the treasury... The followers of the theory suggested building foreign economic exchange on the principles of ruining neighbors, increasing the export of goods and reducing imports, thereby attracting foreign gold to the country.
2. Physiocracy
The assertions of the mercantilists were refuted by the French economist F. Quesnay. He founded a new teaching - Physiocracy. However, the followers themselves called themselves economists, and the term "physiocratism" ("the power of nature") was introduced into circulation later by Adam Smith.
Unlike the mercantilists, this school considered the basis of the country's wealth Agriculture.
The welfare of the state increases if the value of products obtained in agricultural production exceeds the amount of products spent to create it. That is, the so-called "clean product" is growing. Quesnay considered the agriculturalists to be the only productive class.
The physiocrats called the economic process natural harmony, in which there is no place for the state. The government should not have intervened in the economy by establishing laws that would not interfere with the flow of "natural laws of nature."
3. Classical school (late 17th - early 18th centuries)
With the advent of classical school economic theory acquires the status of a scientific discipline with the name political economy... The classics brought together everything that economics studies, systematized the provisions, observations, conclusions, agreed categories and concepts.
The first economist in the modern sense of the word was the Scotsman Adam Smith (1723-1790). He laid the foundations of the labor theory of value and showed the importance of the division of labor as a condition for increasing productivity.
4. Marxism
Karl Marx and Friedrich Engels laid down the theory of building a just society without. is based on the following principles:
- the means of production belong to society and not to individuals;
- unacceptable;
- equal pay for work;
- full employment.
To form such a model of society, the economy must be completely regulated from the center.
5. Marginalism
The theory of marginalism was formed as a response to the teachings of Karl Marx. Economic patterns are studied using extreme values or states.
The classical approaches to the price of goods based on labor costs and other factors are rejected. Value is determined by the usefulness of the product, that is, its ability to meet the needs of the consumer.
6. Neoclassical school
The neoclassical school is a synthesis of the ideas of the classical direction and marginalism. At the present time, the teaching prevails among Western economists.
7. Keynesianism
Keynesianism is a theory of state regulation of the market. Followers of the direction propose to eliminate the unevenness of supply and demand by changing the money supply. These measures affect employment, flow, gross national product and help to overcome economic crises.
4 types of economies used in the world
Depending on how the main problems are solved and who owns the means of production, it is customary to distinguish 4 types of economy:
- traditional;
- market;
- command (planned);
- mixed.
At traditional the way of life, the land and the tools of production belong to the tribe, and the results of labor are distributed according to traditions passed down from generation to generation.
Such an economy rejects any innovations; production is carried out according to backward technologies with a predominance of manual labor. The traditional economic system has survived in some of the backward countries of Africa.
Market economy based on private property. Economic activity is carried out in accordance with personal interests and is regulated by market mechanisms. The state has little influence on economic processes.
In a planned economy the main decisions are made by the authorities. Business entities are not interested in the results of labor and do not have freedom of choice.
Mixed the economy involves a combination of private and public property. The flaws of the market system are smoothed out government regulation... The state participates in the provision of social benefits and services.
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Four spheres of the economy — P.R.O.P.
"P" - production
The development of the sphere of production is due to the need to permanently meet the needs of society and each of its members individually in the creation of various benefits. The relationship between supply and demand is directly proportional. For production, not only domestic economic resources but also foreign investment.
This area is very extensive and is the initial link in the economic chain. If no goods are produced, no services are provided, then such economic situation will lead to a complete collapse of the entire system. The production itself consists of 2 blocks:
- creation of material goods (i.e., in the general sense, the result is certain goods - for example, bread, wood, looms, knitwear, etc.);
- intangible production (the result is the provision of services, for example, educational, medical, etc.).
The first block includes all types of industry from electricity to food, agriculture, construction, etc. Each of production areas, in turn, can be divided into sectors.
The second block, intangible production, should include the service sector, cultural and entertainment, educational, housing and communal services, passenger transport, etc.
In each area there is not only a division into specific areas, but also intersectoral complexes. Both material and non-material production is based on organizations and enterprises that function mainly thanks to hired labor: factories, agricultural corporations, government agencies, schools, theaters, etc.
"P" - distribution
This is the second link in the chain. All products of production, i.e. produced goods and services must be distributed among all members of society. Some goods are exported, others are imported. When distributed in mandatory the principle of social justice must be taken into account. The state should show concern for those members of society who are unable to work due to old age, incapacity, etc. The distribution process itself is provided by:
- the volume of those benefits that producers have created;
- participation in the process of state institutions (for example, tax authorities or social protection of the population).
"O" - exchange
Since ancient times, until they appeared as such banknotes, barter was carried out - i.e. the service was changed for a product, a product for a product, or a service for a service (for example, a sable coat for a pood of salt). In a modern economy, the essence of exchange is reduced to the process of buying and selling goods, i.e. the product / service is exchanged for money (rubles, currency). Each member of society has the right to exchange the resources available to him (including labor) for the desired benefits. An example is hired labor, for which the employee will receive a salary - there is an exchange of knowledge, skills and a person's time for monetary reward. Then the salary is exchanged for the necessary goods, say, for the purchase of clothing and food.
To maintain the parity of the parties in such a transaction, an equivalent equivalent is applied. In some states, national banknotes act as an equivalent, but gold is the world equivalent. The value of the state currency directly depends on its backing with gold, i.e. from the level of the country's gold reserves.
"P" - consumption
The last link in the chain of all spheres of the economy is consumption. Those goods - goods and services - manufactured by means of production should ultimately satisfy the needs of members of society, citizens of the state or buyers from other countries (if during the distribution the goods were sold abroad).
Goods entering the sphere of consumption can move from the economic sphere to the domestic or social sphere (for example, consumer goods), or again be used in the production sphere.
ECONOMY
The word "economy" comes from the Greek oikonomike, which meant the art of housekeeping. Present concept "economy" has several meanings. This term denotes economy of a particular country (Russian economy, american economy) or all world economic system (world economy). The economy is called totality of social relations in the sphere of production, exchange and distribution of material goods. The economy also means totality of sciences, studying individual aspects of the economic sphere of society: economic theory, history of economics, economic statistics, finance and credit, etc.
In a broad sense economy - this is the science of the foundations of the economic life of society . Economic life is understood as the activities of people associated with ensuring the material conditions of their existence. To obtain material benefits, society uses economic resources, which in most cases are limited, and therefore they must be used as efficiently as possible. According to P. Samuelson, Nobel Prize Laureate in Economics, there are three key tasks:
1) what goods to produce, and in what quantities;
2) how to produce goods, i.e. from what resources and with the help of what technology;
3) for whom to produce goods.
Economics considers economic life at two levels: microeconomic and macroeconomic. When specific firms and households, individual goods and resources, industries and markets are considered, this is microeconomic analysis , or microeconomics . When it comes about the economy as a whole, it is macroeconomic analysis, or macroeconomics. So, the analysis of the release of specific products by individual firms and even by the entire industry is microeconomics. Analysis of the total output of all types of products and their sales in the country and in the world is a macroeconomics.
The economic development of each country is unique. It differs in the level of technical development, the prevailing forms of ownership, the volume of material goods produced, etc. One of the criteria of distinction is the concept economic system - the totality of all economic processes occurring in society on the basis of the existing property relations and economic mechanism.
Throughout the history of the existence of mankind, various types of economic systems: tradition tional, administrative-command and market. The latter can be divided into market economy of free competition (pure capitalism) and modern market economy (modern capitalism). In addition, the transition of the former socialist countries (Russia, the CIS member states, the countries of Central and Eastern Europe, China) to market relations led to the formation economic system of the transitional type.
In every economic system, regardless of its type, production, distribution, exchange and consumption of material goods play a primary role. Production - this is the process of creating various kinds of economic products. Various industrial enterprises. Distribution is associated with the transfer of material goods from one entity to another. Distribution is carried out by special state bodies, for example, the tax, customs services, the government, which seize funds from some persons (in the form of taxes) and transfer them to others (in the form of pensions, benefits, etc.). The exchange of goods takes place on the market and is carried out in most cases in the form of purchase and sale. Consumption is associated with the acquisition by organizations and by individuals goods and services.
The distinctive features of the economic system are socio-economic relations, based on the forms of ownership of economic resources and results of economic activity that have developed in each economic system, organizational and legal forms of economic activity and ways of regulating economic activity.
Distinctive features traditional economic system constitute an extremely primitive technology associated with primary processing natural resources, the predominance of manual labor and subsistence farming. All economic problems are solved in accordance with long-established customs, religious, tribal and other traditions. The management of economic life is carried out at the community level or on the basis of the orders of the leaders, slave owners, and feudal lords.
The state practically does not interfere in economic life, except for the imposition of taxes and customs duties. With the development of commodity-money relations, the state increases its influence on the exchange of goods, primarily in foreign trade. Many states in the 17th-18th centuries, including Russia, pursued a policy of protectionism and mercantilism. Protectionism was expressed in support of domestic producers by reducing customs duties on exported goods and increasing fees - on imported from abroad. Mercantilism - it is a policy of accumulating money in the state treasury. In many countries, it was implemented through an outright ban on the export of money abroad. The merchant who sold his goods had to buy the goods produced in the country and export it abroad, not money. In addition, the accumulation of money in the state occurred due to the excess of the export of goods from the country over their import.
The traditional economic system has existed for centuries. The economy of primitive society, slaveholding and feudal states developed within the framework of the traditional economic system.
Administrative command system dominated earlier in the USSR, Eastern Europe and a number of Asian states. Its characteristic features are state property on practically all economic resources, strong centralization and bureaucratization of the economy, the planned system of the economy. All enterprises were managed from a single center, which nullified their independence. The state completely controlled the production and distribution of products, as a result of which free market relations were excluded. The management of economic activities was carried out using administrative-command methods, which reduced the material interest of workers in the results of their labor. The lack of competition objectively did not allow the introduction of scientific developments and technological innovations. The centralized distribution of material goods, labor and financial resources was carried out without the participation of direct producers and consumers. A significant part of the resources, in accordance with the prevailing ideological guidelines, was directed to the development of the military-industrial complex. As a result, all the shortcomings of the administrative-command economic system caused the need for economic reforms.
Free competition market economy(pure capitalism) took shape in the 18th century. and ceased to exist in late XIX- the first half of the XX century. Its distinctive features were private ownership of economic resources, free competition, the presence of many independently acting subjects of economic activity. One of the main prerequisites for pure capitalism is the personal freedom of all participants.
economic activity, i.e. not only a capitalist entrepreneur, but also an employee. The decisive condition for economic progress was the freedom of entrepreneurial activity of those who had capital, and the freedom of the employee to sell his labor. Producers independently solved the problem of allocating all resources, producing those goods that were in demand in the market. Thus, the market, primarily through prices, coordinated the activities of millions of people. Entrepreneurs sought to get more income (profit), economically using natural resources, labor resources, capital, knowledge. All this served as a powerful stimulus for the development and improvement of production. At the same time, tough competition often led to the ruin of many entrepreneurs, as a result of which the largest subjects remained on the market, monopolizing one or another sphere of the economy. Obtaining superprofits by monopolists often took place at the expense of lowering the living standards of employees and robbing colonies.
Modern market economy(modern capitalism) proved to be the most flexible in comparison with previous economic systems. Her characteristic features there are a variety of forms of ownership, the development of scientific and technological progress, the strengthening of the state's influence on the economy, primarily in addressing social issues.
In a modern market economy, the service sector prevails over the consumption sector. Requirements for the education and qualifications of workers are increasing. Attention to environmental protection, the introduction of waste-free production methods is increasing. The number of small businesses in all sectors of the economy is increasing, which contributes to the diversity of goods and services. The whole world is becoming the field of economic activity, the world market, the world economic system is taking shape.
Within each economic system, there are national models that differ in the originality of historical, national, social factors. So, the administrative-command system is characterized by the Soviet model, the Chinese model, etc.
Modern market system also a variety of models. American model is based on a high level of pile performance and a mass orientation towards achieving personal success. The Swedish model is distinguished by a strong social policy aimed at reducing wealth inequality through the redistribution of national income in favor of the poorest segments of the population (Swedish socialism). The Japanese model is characterized by high labor productivity and the use of the achievements of scientific and technological progress, due to which a decrease in the cost of production and a sharp increase in its competitiveness in the world market are ensured.
Russian economic system can be classified as a transitional type. After a long domination of the administrative-command system in the Russian economy at the turn of the 1980-1990s. the transition to market relations began. The Russian economy was distinguished by a high degree of state control, the absence of a private sector, the leading role of the military-industrial complex, and the non-competitiveness of most of industry and agriculture.
In these conditions, the task was set to form an effective market economy with a strong social orientation. For this, it was necessary to create conditions for the formation of private property and the development of a competitive environment, to ensure social protection of the population during the transition to the market. These tasks have not been fully resolved. The denationalization of property (privatization) proceeded with serious violations, which led to a drop in production and a decline in the standard of living of the majority of the population. The unstable position of the economy, replenishment of the budget through the export of raw materials led to crises (for example, in 1998).
The process of stabilization of the Russian economy is currently underway. Production is developing at an accelerating pace. Domestic goods are increasingly replacing imported ones. The standard of living of the population is gradually increasing. However, the crisis in agriculture has not yet been overcome. The process of economic development is uneven in different regions of the country. A big problem is the high degree of criminalization of the economy, concealment of income, tax evasion, etc., which leads to the growth of the so-called "shadow" economy. All this hinders the development of free market relations.
Questions and tasks
1. What are the meanings of the concept of "economy"?
2. What are the tasks of the economy?
3. What is the difference between microeconomics and macroeconomics?
4. What is the role of production, distribution, exchange and consumption in the economy?
5. What types of economic systems exist? Give unfolded
characteristics of each of them.
6. What are the main features of a modern market economy?
7. What are the positive and negative features of modern Russian economy?
8. Check out the materials of the media. Make a conclusion about the prospects for the development of the Russian economy.