08 April 2009
Viktor Remizov
Capitalism without the economic crisis
Chapter 1.
Why I decided to write this book.
In 2008, the
On all these issues, I searched for answers. To achieve the objectives you need to know, what is the role of money in the economy under capitalism. What kind of relationship established between the actors of economic relations as they develop in capitalist society? The tasks seem simple, but it is only at first glance. It seems that everything is already known and nothing new can not be opened. But is this true? And if at all look more closely, may be able to discover something new and find real solutions to real problems?
To understand what processes are taking place in capitalist society, to the extent of its development, and what relationship exists between them, I proceeded to study these fundamental processes. In my work, I used a combination of two methods: the method of mathematical calculations and the method of economic modeling. In the course of the study were simulated various business and economic processes at all stages of development of capitalist relations in society, and explored their relationship. As a result of the research has revealed the causes of economic crisis. Removing this reason, would withdraw from the crisis economy of the state. In addition, develop and propose actions to avoid an economic crisis in the future. The most striking was the simplicity of my decisions and their social orientation. if you follow my recommendations, you can delete the economic crises in the life of capitalist society in general and at the same time create an enabling socio-economic situation in the society. The results of my research, I decided to publish this book.
Chapter 2.
Price of goods or services.
We know that the price of goods includes the cost of their production and profits. With regard to cost, then their composition is determined by current tax legislation. In general terms, these costs can be grouped as follows:
1) Depreciation of fixed assets and intangible assets;
2) Cost of working capital (assets) of the company spent on the production of goods or services. This group of costs includes the following costs:
- Cost of goods purchased for further implementation;
- Cost of materials and components;
- Cost of services rendered to other organizations;
- The cost of detergents and household goods;
- The costs of stationery;
- Other similar expenses.
3) Expenditures for salaries of employees of the enterprise.
4) Payment of taxes and other mandatory payments to the budget.
Let's see what components make up the price of the commodity. Take, for example, the office button. The composition of the cost of production of the buttons are: salaries of workers and the cost of raw materials (metal), the amount of taxes paid to the budget. The composition of the cost of production of the metal include: wage workers employed in the manufacture of metal and cost of raw materials (ore), the amount of taxes paid to the budget. The composition of the cost of production of ore is the amount of taxes paid to the budget and salary workers in mining, processing and ore delivery to the consumer.
Such reasoning would be fair and if we begin to consider any other business expenses, including costs of major capital goods and intangibles, the cost of household and office needs, travel expenses, etc.
Thus, the price of any product (service) consists of three components:
1) total costs for salaries of employees of all entities involved in the processing chain of production of the product (service).
2) the sum of all taxes and other obligatory payments, paid to the budget of all the enterprises involved in the processing chain of production of the product (service).
3) the sum of the planned profit, all enterprises involved in the processing chain of production of the product (service).
Components 1) and 2) can be merged into one, because they both reflect the income of citizens, directly influencing their purchasing power.
All payments to the budget one way or another, sooner or later, but for sure will be paid by citizens in the form of wages of employees of the public sector (civil servants, teachers, doctors, soldiers, and many others) and employees of commercial enterprises, in the case of carrying out government orders. (acquisition of budgetary organizations, business, household, stationery or other goods, repairs, etc.). However, a small portion of the funds in the form of taxes and obligatory payments, again returns to the state budget, as part of the funds remain in business in the form of profits. Due to the fact that these amounts are modest in their future calculations, I will not take account of them.
Thus, one can say that the price of any product (service) is composed of two components:
1. The income of citizens, consisting of wages of workers in all enterprises involved in one way or another, at different stages in the production of this product, and the sum of all compulsory fees and taxes paid by these companies;
2. Planned aggregate profits of all enterprises involved in the production of this product.
Chapter 3.
Profits.
It is generally accepted that the aim of any business, is profit. This situation, I would like to change: making a profit through the satisfaction of the needs of the population for goods and services. In fact, the well-being of any society depends on the extent to which satisfied the needs of citizens in consumer goods and services. Extract maximum profits should not be an end in itself. Every owner, every manager must understand that the foundation of its business activities should be not just profit, but also the needs of the population in the consumer goods and services. This attitude, in turn, ensures social stability of society, and as a consequence, the stability of economic relations in society and stable development of each company separately.
As is known, the profits can be either planned or actual. Planned profits of any enterprise becomes real only after the sale of its products the buyer, subject to the buyer's full payment for the product supplier. The products of enterprises producing raw materials or components, for further processing, as a rule, acquire other businesses. When selling a product to another company, the seller sends the buyer together with the goods and all risks associated with its further processing and sales. Companies that sell finished products (goods or services) to final customer (citizens) assume all risks of other companies involved in the production of these products (goods or services).
Chapter 4.
Economic modeling and analysis.
Creating the model.
To understand the processes occurring in the capitalist society, I created an imaginary model of the state. Suppose that in this state there is no capitalist economic relations. All citizens living in subsistence farming. But individuals have accumulated money and decided to create several different companies.
For example, let them be set up ten such companies:
1) Energy Company ;
2) Water supply;
3)
4) The refinery;
5) Trucking company;
6) Farmer;
7)
8) Footwear enterprises;
9) Shop;
10) Cafe.
In our imaginary country created by the administrative apparatus, the authorities and the social enterprise sector. There are laws, including tax. There is a central bank and national currency - the dollar. Central Bank issued in treatment 3 700 000 dollars. All the money concentrated at the hands of ten people, the founders of companies. Owners in the creation of enterprises invested in their businesses all the money, 3 700 000 dollars.
For normal businesses, they need to have the means of production (fixed assets). At the creation of productive assets, fixed assets, enterprises have invested their own funds.
To simplify the discussion let us assume that the fixed assets (buildings, equipment, vehicles, etc.) is not bought on the side, and created their own, economical way. Assume also that the companies have created fixed assets at 3 240 000 dollars. including:
1) Energy Company - 360 000 dollars;
2) Water supply - 240 000 dollars;
3) Enterprise Oil - 360 000 dollars;
4) Refinery - 360 000 dollars;
5) Trucking company - 600 000 dollars;
6) Farmer - 360 000 dollars;
7)
8) Footwear enterprises - 240 000 dollars;
9) Shop - 240 000 dollars;
10) Cafe - 240 000 dollars.
The company has current assets in the amount of 460 000 USD. (3 700 000 dollars - 3 240 000 dollars), Including:
- To the shop 360 000 dollars;
- In a cafe 100 000 dollars.
To simplify the situation, let us assume that all transactions between participants in economic relations made in the current month. This month, the calculations are made for goods and services. This month, paid wages to employees of all businesses. This month, all businesses pay taxes. Shop and cafe first calculated with their suppliers.
For the procurement of goods, payments to vendors, payments to employees of the store and paying taxes in the first month of business, a store must spend 304 644 dollars. working capital. Those costs will be at Cafe 74 956 dollars (see Table number 1 below). Together, they amount to 304 644 dollars. This amount is the minimum, sufficient to start the economic activities of all ten companies to start production and sales of goods and services. Shop and cafe actually have working capital in the amount of 460 000 dollars. That is much higher than calculated above, the minimum amount of working capital.
Let the normative life of all fixed assets of all enterprises is 10 years, which equals 120 months.
All of the company began its production activities at the same time.
As mentioned above, before the emergence of capitalist economic relations, all citizens of our imagined country living in subsistence farming and the transition to new forms of relations will take place gradually, as they develop. Missing for the normal life of the goods and products are producing their own citizens.
As mentioned in the previous chapter, the purpose of any business is profit, it is now known to all and is not contested, in a capitalist society it is normal, otherwise the owner would be no need to create it.
For normal operation of the company should use wage labor.
In advance to warn that all these figures in this paper and the original economic indicators are fictitious and are taken by me just to be able to carry out the necessary calculations. The use of other digits would lead to a change in the results of these calculations, but did not change their essence, the relationship between themselves and no influence the outcome of this research work.
Terms and Concepts.
The text of this book I have used the following terms and concepts:
- Total merchandise product - the value of all goods and services offered by all vendors for the implementation of the population in terms of money;
- Gross income of the population - the sum of all income for all citizens, including wages, dividends and other income;
- The purchasing power of the population - the total funds at the disposal of all citizens of an imaginary state;
- The total profit (can be as planned or actual) - the sum of profits of all enterprises, planned or received by them for a certain period;
- The budget - the state budget;
- Taxes - taxes and other mandatory payments to the budget;
- Depreciation - depreciation of fixed assets and intangible assets.
Consider the process of creating each of the company separately and analyze the results of production activities of enterprises in the first month.
Economic performance of all enterprises in the first month of work.
The first - the Energy Company .
At the creation of fixed assets invested 360 000 dollars, Including:
- Wages paid 300 000 dollars;
- Taxes paid 60 000 dollars;
The company generates electricity and sells it to other companies and individuals.
The company sells electricity to all consumers at the same price.
The company plans to sell electricity in the amount of 40 000 dollars, Including:
- Other companies in the amount of 36 000 dollars;
- Citizens in the amount of 4 000 dollars.
The company plans to production costs:
- Depreciation of fixed assets (buildings, installations and equipment) 3 000 dollars;
- Cost of water used in the production of 2 000 dollars;
- Wages paid 6 000 dollars;
- Taxes paid 9 360 dollars.
Total production costs of the company amount to 20 360 dollars.
The company plans to generate revenue 19 640 dollars (40 000 dollars - 20 360 dollars).
The second - the plumbing.
At the creation of fixed assets invested 240 000 dollars, including:
- Wages paid 200 000 dollars;
- Taxes paid 40 000 dollars.
The company provides other businesses and citizens water. All water is sold at one price.
The company plans to sell water at 50 000 dollars, Including:
- Other companies in the amount of 40 000 dollars;
- Citizens in the amount of 10 000 dollars.
The company plans to production costs:
- Depreciation of fixed assets (buildings, equipment) 2 000 dollars;
- Cost of electricity consumed 8 000 dollars;
- Wages 7 000 dollars;
- Taxes 10 720 dollars.
Total production costs of the company amount to 27 720 dollars.
The company plans to generate revenue 22 280 dollars (50 000 dollars - 27 720 dollars).
The third project - the company on oil production.
At the creation of fixed assets invested 360 000 dollars, including:
- Wages paid to 300 000 dollars;
- Taxes paid 60 000 dollars.
The company produces and sells crude oil.
The company plans to sell oil on the amount of 90 000 dollars.
The company plans to production costs:
- Depreciation of fixed assets (buildings, equipment) 3 000 dollars;
- Cost of electricity consumed 8 000 dollars;
- Cost of water used in the production of 2 000 dollars;
- Wages 13 500 dollars;
- Taxes 20 640 dollars.
Total production costs of the company was 47 140 dollars.
The company plans to generate revenue 42 860 dollars (90 000 dollars - 47 140 dollars).
The fourth - the refinery.
At the creation of fixed assets invested 360 000 dollars, including:
- Wages paid 300 000 dollars;
- Taxes paid 60 000 dollars.
The company produces gasoline
The company plans to manufacture and sell gasoline in the amount of 150 000 dollars.
The company plans to production costs:
- Depreciation of fixed assets (buildings, equipment) 3 000 dollars;
- The cost of electricity consumption 4 000 dollars;
- Cost of water used in the production of 2 000 dollars;
- Cost of raw material (oil) 90 000 dollars;
- Wages 8 500 dollars;
- Taxes 13 600 dollars.
Total production costs of the company amount to 121 100 dollars.
The company plans to generate revenue 28 900 dollars (150 000 dollars - 121 100 dollars).
The fifth - the trucking company.
At the creation of fixed assets invested 600 000 dollars, including:
- Wages paid 500 000 dollars;
- Taxes paid 100 000 dollars.
The company is engaged in freight and passenger transport.
The company plans to comply with the volume of traffic on the amount of 200 000 dollars, Including:
- Freight transport on the orders of other companies in the amount of 120 000 dollars;
- Passenger transportation in the amount of 80 000 dollars.
The company plans to production costs:
- Depreciation of fixed assets (buildings, vehicles) 5 000 dollars;
- The cost of electricity consumption 4 000 dollars;
- Cost of water used in the production of 6 000 dollars;
- Cost of fuel 100 000 dollars;
- Wages 15 000 dollars;
- Taxes 22 800 dollars.
Total production costs of the company amount to 152 800 dollars.
The company plans to generate revenue 47 200 dollars (200 000 dollars - 152 800 dollars).
The sixth - the farmer.
At the creation of fixed assets invested 360 000 dollars, including:
- Wages paid 300 000 dollars;
- Taxes paid 60 000 dollars.
The farmer produces agricultural products: vegetables, meat and pig skin. Meat and vegetables sold to citizens through the shop and cafe. Leather is a raw material for shoes
The farmer plans to sell its products in the amount of 160 000 dollars, Including:
- Vegetables in the amount of 80 000 dollars;
- Meat in the amount of 60 000 dollars;
- Swine skin in the amount of 20 000 dollars.
The farmer plans to production costs:
- Depreciation of fixed assets (buildings, equipment) 3 000 dollars;
- The cost of electricity consumption 6 000 dollars;
- Cost of water used in the production of 14 000 dollars;
- The cost of gasoline 50 000 dollars;
- Service motor companies 40 000 dollars;
- Salaries of employees 8 000 dollars;
- Taxes 12 560 dollars.
Total production costs of the company amount to 133 560 dollars.
The farmer plans to generate revenue 26 440 dollars (160 000 dollars - 133 560 dollars).
Seventh - the enterprise for dressing pork skin.
At the creation of fixed assets invested 240 000 dollars, including:
- Wages paid 200 000 dollars;
- Taxes paid 40 000 dollars.
The company produces raw materials for production of footwear from pig skin.
The company plans to sell their products in the amount of 74 000 dollars.
The company plans to production costs:
- Depreciation of fixed assets (buildings, equipment) 2 000 dollars;
- Cost of electricity consumed 2 000 dollars;
- Cost of water used in the production of 4 000 dollars;
- Service motor companies 26 000 dollars;
- Cost of raw materials - raw pig skin 20 000 dollars;
- Salaries of employees of the company 3 500 dollars;
- Taxes 5 360 dollars.
Total production costs of the company was 62 860 dollars.
The company plans to generate revenue 11 140 dollars (74 000 dollars - 62 860 dollars).
Eighth - the enterprise for the production of shoes.
At the creation of fixed assets invested 240 000 dollars, including:
- Wages paid 200 000 dollars;
- Taxes paid 40 000 dollars.
The company plans to sell shoes in the amount of 172 000 dollars.
The company plans to production costs:
- Depreciation of fixed assets (buildings, equipment) 2000 dollars;
- Cost of electricity consumed 2 000 dollars;
- Cost of water used in the production of 6 000 dollars;
- Service motor companies 40 000 dollars;
- Cost of raw materials (skin) 74 000 dollars;
- Salaries of employees of the company 8 500 dollars;
- Taxes 12 880 dollars.
Total production costs of the company amount to 145 380 dollars.
The company plans to generate revenue 26 620 dollars (172 000 dollars - 145 380 dollars).
Ninth - the shop.
At the creation of fixed assets invested 240 000 dollars, including:
- Wages paid 200 000 dollars;
- Taxes paid 40 000 dollars.
The shop plans to realize 70% of meat and vegetables produced by the farmer and shoes with 100% trade margin of 25%. Total amount 337 500 dollars, Including:
- Vegetables in the amount of 70 000 dollars (80 000 dollars x 70% x 25%);
- Meat in the amount of 52 500 dollars (60 000 dollars x70% x 25%);
- Footwear for the sum of 215 000 dollars (172 000 dollars x 100% x 25%).
Shop is planning the following production costs:
- Depreciation of fixed assets (buildings, equipment) 2 000 dollars;
- Cost of energy consumption 1 000 dollars;
- Cost of water used by 2 000 dollars;
- Service motor companies 7 400 dollars;
- Cost of goods, vegetables 56 000 dollars (80 000 dollars x 70%);
- Cost of goods, meat 42 000 dollars (60 000 dollars x 70%);
- Cost of goods, footwear 172 000 dollars (172 000 dollars x 100%).
- Wage workers 9 500 dollars;
- Taxes 14 744 dollars.
Total production costs of The shop amount to 306 644 dollars.
The shop plans to generate revenue 30 856 dollars (337 500 dollars - 306 644 dollars).
The tenth - the cafe.
At the creation of fixed assets invested 240 000 dollars, including:
- Wages paid 200 000 dollars;
- Taxes paid 40 000 dollars.
Cafe for cooking various dishes plans to use 30% of farmer produced meat and vegetables with a 150% trade margin. Cafe plans to sell their products in the amount of
105 000 dollars (80 000 dollars x 30% x 2.5 + 60 000 dollars x 30% x 2.5).
The cafe plans to production costs:
- Depreciation of fixed assets (buildings, equipment) 2 000 dollars;
- Cost of energy consumption 1 000 dollars;
- Cost of water used in the production of 2 000 dollars;
- Service motor companies 6 600 dollars;
- Cost of goods, vegetables 24 000 dollars (80 000 dollars x 30%);
- Cost of goods, meat 18 000 dollars (60 000 dollars x 30%);
- Wage workers 9 500 dollars;
- Taxes 13 856 dollars.
Total production costs of the company amount to 76 956 dollars.
Cafe plans to generate revenue 28 044 dollars (105 000 dollars - 76 956 dollars).
Estimate the purchasing power of people In the first month of production activity of enterprises.
In previous months, in the creation of fixed assets, all the companies together made the following expenditures:
- Has been paid wages to employees in the amount of 2 700 000 dollars;
- Taxes paid in the amount of 540 000 dollars.
Thus at the beginning of the first month of production activities of enterprises in the population concentrated money in the amount of 3 240 000 dollars.
Since the start of production in the first month, businesses paid wages to employees in the amount of 89 000 dollars.
Total purchasing power of the population was 3 329 000 dollars.
When calculating the purchasing power of citizens (the people), I proceed from the assumption that the fixed assets of the company created over a long period, possibly several months. During this period, monthly enumerating all the taxes in the budget. Thus, by the beginning of sales of goods manufactured by enterprises in the first month, all enterprises were listed in the budget, taxes on the amount of 540 000 dollars. Of the budget, in the same period, this amount was fully spent on the salaries of employees of budgetary sphere.
The amount of taxes paid to the budget of all businesses in the first month of their production activities, could be spent on salaries of employees of budgetary sphere no earlier than next month. This is true not only for the first, but for all subsequent months.
Estimate the saturation of the market in goods and services in monetary terms In the first month of production activity of enterprises.
The first offers the people of electricity amounting to 4 000 dollars.
The second offers the public to purchase water at 10 000 dollars.
The fifth company offers the public passenger transportation in the amount of 80 000 dollars.
Shop offers a variety of goods in the amount of 337 500 dollars.
Cafe offers meals for the sum of 105 000 dollars.
Total proposed goods and services in the amount of 536 500 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 3 329 000 dollars.
Citizens are invited to buy goods and services on the amount of 536 500 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold for the sum of 536 500 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars.
The balance of funds held by the population at the end of the month 2 792 500 dollars.
The distribution of money in circulation at the end of the first month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of sales of goods and services all the money had been distributed follows:
- At the hands of the population of 2 792 500 dollars;
- Amount of budget funds 136 520 dollars;
- Working capital of all enterprises at the end of the month 770 980 dollars, Including:
- Working capital of all enterprises at the beginning of month 460 000 dollars;
- Gross profit in the amount of 283 980 dollars;
- Depreciation of fixed assets 27 000 dollars.
Further developments could be developed for different scenarios, we consider all possible options.
Let us analyze the results of economic development on the version of "A".
Option «A» includes:
- Constantly in the business 3 700 000 dollars;
- Companies are not expanding;
- Stability of the production of goods and services, lack of growth;
- Stability of wages;
- Free-market prices for goods and services.
The analysis of economic activity all enterprises in the second month.
We know that the easiest way to increase profits - to raise prices of their goods and services.
In our case, excessively high purchasing power compared to the value of total merchandise product stimulates the growth of prices for goods and services.
Companies have decided to raise the prices of their goods and services by 10%.
Shop has decided to increase the allowance trading up to 26%.
Cafe decided to increase the trade allowance of up to 160%
In the second and subsequent months, I will not analyze the production and economic activities of each company separately. All the information and calculations are given in the tables. I will only comment on general trends of development of the economy as a whole.
Economic results activities of all enterprises in the second month of work.
Estimate the purchasing power of people in the second month.
The balance of funds of citizens at the beginning of the month 2 792 500 dollars.
This month, companies paid wages to its employees in the amount of 89 000 dollars.
In the last month of the company listed in the amount of taxes 136 520 dollars.
The purchasing power of the population 3 018 020 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 4 400 dollars.
The second offers the people to buy water in the amount of 11 000 dollars.
The fifth company offers the public passenger transportation in the amount of 88 000 dollars.
Shop offers a variety of goods in the amount of 374 220 dollars.
Cafe offers meals for the sum of 120 120 dollars.
Total proposed goods and services in the amount of 597 740 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 3 018 020 dollars.
Citizens are asked to buy goods and services in the amount of 597 740 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold for the sum of 597 740 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars.
At the hands of the people after the acquisition of goods and services is 2 420 280 dollars.
The distribution of money in circulation at the end of the second month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 2 420 280 dollars.
- Amount of budget funds 151 217 dollars.
- Working capital of all enterprises at the end of the month 1 128 503 dollars, Including:
- Working capital of all enterprises at the beginning of the month 770 980 dollars;
- Gross profit in the amount of 330 523 dollars;
- Depreciation of fixed assets 27 000 dollars.
The analysis of economic activity all enterprises in the third month.
All manufacturing companies have decided to raise prices goods and services by 10%.
Shop has decided to increase the allowance trading up to 27%.
Cafe decided to increase the trade allowance of up to 170%
Economic results activities of all enterprises in the third month of work,
See table number 3A. Click on the table to watch.
Estimate the purchasing power of people In the third month.
The balance of funds of citizens at the beginning of the month 2 420 280 dollars.
This month, companies paid wages to its employees in the amount of 89 000 dollars.
In the last month of the company listed in the amount of taxes 151 217 dollars.
The purchasing power of population 2 660 497 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 4 840 dollars.
The second offers the people to buy water in the amount of 12 100 dollars.
The fifth company offers the public passenger transportation in the amount of 96 800 dollars. Shop offers a variety of goods in the amount of 414 908 dollars.
Cafe offers meals for the sum of 137 214 dollars.
Total proposed goods and services in the amount of 665 862 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 2 660 497 dollars.
Citizens are asked to buy goods and services in the amount of 665 862 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold for the sum of 665 862 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars. At the hands of the people after the acquisition of goods and services is 1 994 635 dollars.
The distribution of money in circulation at the end of the third month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 1 994 635 dollars;
- Amount of budget funds 167 568 dollars;
- Working capital of all enterprises at the end of the month 1 537 797 dollars, including:
- Working capital of all enterprises at the beginning of the month 1 128 503 dollars;
- Gross profit in the amount of 382 294 dollars;
- Depreciation of fixed assets 27 000 dollars.
The analysis of economic activity all businesses in the fourth month.
All manufacturing companies have decided to raise prices goods and services by 10%.
Shop has decided to increase the allowance trading up to 28%.
Cafe decided to increase the allowance trading up to 180%
Economic results activities of all enterprises in the fourth month.
See table number 4A. Click on the table to watch.
Estimate the purchasing power of people In the fourth month.
The balance of funds from the population at the beginning of the month 1 994 635 dollars.
This month, businesses paid wages amounting to 89 000 dollars.
In the previous month are listed all the taxes in the amount of 167 568 dollars.
Total purchasing power of the population was 2 251 203 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 5 324 dollars.
The second offers the people to buy water in the amount of 13 310 dollars.
The fifth company offers passenger service in the amount of 106 480 dollars.
Shop offers a variety of goods in the amount of 459 994 dollars.
Cafe offers meals for the sum of 156 525 dollars.
Total proposed goods and services in the amount of 741 633 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 2 251 203 dollars.
Citizens are asked to buy goods and services in the amount of 741 633 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold for the sum of 741 633 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars.
At the hands of the people after the acquisition of goods and services is 1 509 570 dollars.
The distribution of money in circulation at the end of the fourth month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 1 509 570 dollars.
- Amount of budget funds 185 753 dollars.
- Working capital of all enterprises at the end of the month 2 004 677 dollars, including:
- Working capital of all enterprises at the beginning of the month 1 537 797 dollars;
- Gross profit in the amount of 439 880 dollars;
- Depreciation of fixed assets 27 000 dollars.
The analysis of economic activity all enterprises in the fifth month.
All manufacturing companies have decided to raise prices goods and services by 10%.
Shop has decided to increase the allowance trading to 29%.
Cafe decided to increase the trade allowance to 190%
Economic results activities of all enterprises in the fifth month of work.
See table number 5A. Click on the table to watch.
Estimate the purchasing power of people In the fifth month.
The balance of funds from the population at the beginning of the month 1 509 570 dollars.
This month, businesses paid wages amounting to 89 000 dollars.
In the previous month are listed all the taxes in the amount of 185 753 dollars.
Total purchasing power of the population was 1 784 323 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 5 856 dollars.
The second offers the people to buy water in the amount of 14 641 dollars.
The fifth company offers passenger service in the amount of 117 128 dollars.
Shop offers a variety of goods in the amount of 509 946 dollars.
Cafe offers meals for the sum of 178 327 dollars.
Total proposed goods and services in the amount of 825 898 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 1 784 323 dollars.
Citizens are asked to buy goods and services in the amount of 825 898 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold for the sum of 825 898 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars.
At the hands of the people after the acquisition of goods and services is 958 425 dollars.
The distribution of money in circulation at the end of the fifth month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 958 425 dollars;
- Amount of budget funds 205 975 dollars;
- Working capital of all enterprises at the end of the month 2 535 600 dollars, including:
- Working capital of all enterprises at the beginning of the month 2 004 677 dollars;
- Gross profit in the amount of 503 923 dollars;
- Depreciation of fixed assets 27 000 dollars.
The analysis of economic activitiesof all enterprises in the sixth month.
All manufacturing companies have decided to raise prices goods and services by 10%.
Shop has decided to increase the trade allowance of up to 30%.
Cafe decided to increase the trade allowance of up to 200%
Economic results activities of all enterprises in the sixth month of work.
Estimate the purchasing power of people In the sixth month.
The balance of funds from the population at the beginning of the month 958 425 dollars.
This month, businesses paid wages amounting to 89 000 dollars.
In the previous month are listed all the taxes in the amount of 205 975 dollars.
Total purchasing power of the population was 1 253 400 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 6 442 dollars.
The second offers the people to buy water in the amount of 16 105 dollars.
The fifth company offers passenger service in the amount of 128 841 dollars.
Shop offers a variety of goods in the amount of 565 289 dollars.
Cafe offers meals for the sum of 202 923 dollars.
Total proposed goods and services in the amount of 919 600 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 1 253 400 dollars.
Citizens are asked to buy goods and services in the amount of 919 600 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold for the sum of 919 600 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars.
At the hands of the people after the acquisition of goods and services is 333 800 dollars.
The distribution of money in circulation at the end of six months.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 333 800 dollars;
- Amount of budget funds 228 464 dollars;
- Working capital of all enterprises at the end of the month 3 137 736 dollars, including:
- Working capital of all enterprises at the beginning of the month 2 535 600 dollars;
- Gross profit in the amount of 575 136 dollars;
- Depreciation of fixed assets 27 000 dollars.
The analysis of economic activity all enterprises in the seventh month.
All manufacturing companies have decided to raise prices goods and services by 10%.
Shop and cafe saved allowance trading unchanged
Economic results activities of all enterprises in the seventh month of work.
Estimate the purchasing power of people In the seventh month.
The balance of funds from the population at the beginning of the month 333 800 dollars.
This month, businesses paid wages amounting to 89 000 dollars.
In the previous month are listed all the taxes in the amount of 228 464 dollars.
Total purchasing power of the population was 651 264 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 7 086 dollars.
The second offers the people to buy water in the amount of 17 716 dollars.
The fifth company offers passenger service in the amount of 141 725 dollars.
Shop offers a variety of goods in the amount of 621 819 dollars.
Cafe offers meals for the sum of 223 215 dollars.
Total proposed goods and services amounting to 1 011 561 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 651 264 dollars.
Citizens are asked to buy goods and services amounting to 1 011 561 dollars.
Since the demand was lower than the proposal, goods and services were sold, not all.
Goods and services were sold for the sum of 651 264 dollars.
The balance of unsold goods at the end of this month was in the amount of 360 297 dollars.
At the hands of the people after the acquisition of goods and services remained 0 dollars.
The distribution of money in circulation at the end of the seventh month.
As stated above, the turnover of 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 0 dollars;
- Amount of budget funds 250 536 dollars;
- Working capital of all enterprises at the end of the month 3 449 464 dollars, including:
- Working capital of all enterprises at the beginning of the month 3 137 736 dollars;
- Gross profit in the amount of 284 728 dollars;
- Depreciation of fixed assets 27 000 dollars.
In the case of developments on option «A» crisis manifests itself clearly in the seventh month of production and economic activity.
Summary table of results of economic activity variant of «A».
Let us analyze the results of economic development under option "B".
Option «B» includes:
1. Continuing in business 3 700 000 dollars.
2. Free market prices for goods and services.
- Companies are not expanding;
- Stability of the production of goods and services, lack of growth;
- Stability of wages;
- Monthly price increases for goods and services.
4. Starting from the sixth and all subsequent months, the economic relations are undergoing the following changes:
- All companies are investing their own funds to expand production capacity;
- Increasing the number of jobs;
- The stability of prices for goods and services, starting with the seventh month and all subsequent months, prices are saved at the level of the sixth month;
- Starting with the seventh month and all subsequent months is planned to increase production of goods and services.
The analysis of economic activity all enterprises in the sixth month.
All manufacturing companies have decided to raise the prices of goods and services by 10%. Shop has decided to increase the trade allowance of up to 30%.
Cafe decided to increase the trade allowance of up to 200%
Companies are investing their own funds to expand production by 20%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the sixth month of work.
Estimate the purchasing power of people In the sixth month.
The balance of funds from the population at the beginning of the month 958 425 dollars.
This month, businesses paid wages in the amount of 629 000 dollars.
In the previous month are listed all the taxes in the amount of 205 975 dollars.
Total purchasing power of the population was 1 793 400 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 6 442 dollars.
The second offers the people to buy water in the amount of 16 105 dollars.
The fifth company offers passenger service in the amount of 128 841 dollars.
Shop offers a variety of goods in the amount of 565 289 dollars.
Cafe offers meals for the sum of 202 923 dollars.
Total proposed goods and services in the amount of 919 600 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 1 793 400 dollars.
Citizens are asked to buy goods and services in the amount of 919 600 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold for the sum of 919 600 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars.
At the hands of the people after the acquisition of goods and services is 873 800 dollars.
The distribution of money in circulation at the end of six months.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 873 800 dollars;
- Amount of budget funds 336 464 dollars (taxes paid in this month 108 000 dollars + 228 464 dollars);
- Working capital of all enterprises at the end of the month 2 489 736 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 535 600 dollars;
- Gross profit in the amount of 575 136 dollars;
- Depreciation of fixed assets 27 000 dollars;
- Invested in capital assets (to reduce) -648 000 dollars.
The analysis of economic activity all enterprises in the seventh month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 20%
All prices for goods and services are frozen. Prices for goods and services in the seventh month, and all subsequent months will not change.
Companies are investing their own funds to expand production by 20%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the seventh month of work.
Estimate the purchasing power of the population in the seventh month.
The balance of funds from the population at the beginning of the month 873 800 dollars.
This month, businesses paid wages in the amount of 754 800 dollars.
In the previous month are listed all the taxes in the amount of 336 464 dollars.
Total purchasing power of the population was 1 965 064 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 7 730 dollars.
The second offers the people to buy water in the amount of 19 326 dollars.
The fifth company offers passenger service in the amount of 154 609 dollars.
Shop offers a variety of goods in the amount of 678 348 dollars.
Cafe offers meals for the sum of 243 507 dollars.
Total proposed goods and services amounting to 1 103 520 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 1 965 064 dollars.
Citizens are asked to buy goods and services amounting to 1 103 520 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold at 1 103 520 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars.
At the hands of the people after the acquisition of goods and services is 861 544 dollars.
The distribution of money in circulation at the end of the seventh month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 861 544 dollars;
- Amount of budget funds 403 757 dollars (taxes paid in this month
129 600 dollars + 274 157 dollars);
- Working capital of all enterprises at the end of the month 2 434 699 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 489 736 dollars;
- Gross profit in the amount of 690 163 dollars;
- Depreciation of fixed assets 32 400 dollars;
- Invested in capital assets (to reduce) -777 600 dollars.
The analysis of economic activity all enterprises in the eighth month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 20%
Companies are investing their own funds to expand production by 20%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the eighth month of work.
Estimate the purchasing power of people In the eighth month.
The balance of funds from the population at the beginning of the month 861 544 dollars.
This month, businesses paid wages in the amount of 905 760 dollars.
In the previous month are listed all the taxes in the amount of 403 757 dollars.
Total purchasing power of the population was 2 171 061 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 9 276 dollars.
The second offers the people to buy water in the amount of 23 191 dollars.
The fifth company offers passenger service in the amount of 185 531 dollars.
Shop offers a variety of goods in the amount of 814 018 dollars.
Cafe offers meals for the sum of 292 206 dollars.
Total proposed goods and services amounting to 1 324 222 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 2 171 061 dollars.
Citizens are asked to buy goods and services amounting to 1 324 222 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold at 1 324 222 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars. At the hands of the people after the acquisition of goods and services is 846 839 dollars.
The distribution of money in circulation at the end of the eighth month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 846 839 dollars;
- Amount of the budget 484 506 dollars (taxes paid in this month
155 520 dollars + 328 986 dollars);
- Working capital of all enterprises at the end of the month 2 368 655 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 434 699 dollars;
- Gross profit in the amount of 828 196 dollars;
- Depreciation of fixed assets 38 880 dollars;
- Invested in capital assets (to reduce) -933 120 dollars.
The analysis of economic activity all enterprises in the ninth month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 20%
Companies are investing their own funds to expand production by 20%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
The economic performance of all enterprises in the ninth month.
See table № 9B. Click on the table to watch.
The balance of funds from the population at the beginning of the month 846 839 dollars.
This month, businesses paid wages amounting to 1 086 912 dollars.
In the previous month are listed all the taxes in the amount of 484 506 dollars.
Total purchasing power of the population was 2 418 257 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 11 131 dollars.
The second offers the people to buy water in the amount of 27 829 dollars.
The fifth company offers passenger service in the amount of 222 637 dollars.
Shop offers a variety of goods in the amount of 976 820 dollars.
Cafe offers meals for the sum of 350 649 dollars.
Total proposed goods and services amounting to 1 589 066 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 2 418 257 dollars.
Citizens are asked to buy goods and services amounting to 1 589 066 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold at 1 589 066 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars. At the hands of the people after the acquisition of goods and services is 829 191 dollars.
The distribution of money in circulation at the end of nine months.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 829 191 dollars;
- Amount of budget funds 581 409 dollars (taxes paid in this month
186 624 dollars + 394 785 dollars);
- Working capital of all enterprises at the end of the month 2 289 400 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 368 655 dollars;
- Gross profit in the amount of 993 833 dollars;
- Depreciation of fixed assets 46 656 dollars;
- Invested in capital assets (to reduce) -1 119 744 dollars.
The analysis of economic activity all enterprises in the tenth month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 20%
Companies are investing their own funds to expand production by 20%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the tenth month.
See table № 10B. Click on the table to watch.
Estimate the purchasing power of people In the tenth month.
The balance of funds from the population at the beginning of the month 829 191 dollars.
This month, businesses paid wages amounting to 1 192 322 dollars.
In the previous month are listed all the taxes in the amount of 581 409 dollars.
Total purchasing power of the population was 2 602 922 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 13 357 dollars.
The second offers the people to buy water in the amount of 33 395 dollars.
The fifth company offers passenger service in the amount of 267 164 dollars.
Shop offers a variety of goods at 1 172 184 dollars.
Cafe offers meals for the sum of 420 780 dollars.
Total proposed goods and services amounting to 1 906 880 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 2 602 922 dollars.
Citizens are asked to buy goods and services amounting to 1 906 880 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold at 1 906 880 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars. At the hands of the people after the acquisition of goods and services is 696 042 dollars.
The distribution of money in circulation at the end of the tenth month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 696 042 dollars;
- Amount of budget funds 675 297 dollars (taxes paid in this month
201 555 dollars + 473 742 dollars);
- Working capital of all enterprises at the end of the month 2 328 661 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 289 400 dollars;
- Gross profit of 1 192 599 dollars;
- Depreciation of fixed assets 55 987 dollars;
- Invested in capital assets (to reduce) -1 209 325 dollars.
The analysis of economic activityall enterprises in the eleventh month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 20%
Companies are investing their own funds to expand production by 20%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the eleventh month of work.
Estimate the purchasing power of people in the eleventh month.
The balance of funds from the population at the beginning of the month 696 042 dollars.
This month, businesses paid wages amounting to 1 076 616 dollars.
In the previous month are listed all the taxes in the amount of 675 297 dollars.
Total purchasing power of the population was 2 447 955 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 15 761 dollars.
The second offers the people to buy water in the amount of 39 406 dollars.
The fifth company offers passenger service in the amount of 315 254 dollars.
Shop offers a variety of goods at 1 383 177 dollars.
Cafe offers meals for the sum of 496 521 dollars.
Total proposed goods and services amounting to 2 250 119 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 2 447 955 dollars.
Citizens are asked to buy goods and services amounting to 2 250 119 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold at 2 250 119 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars.
At the hands of the people after the acquisition of goods and services is 197 836 dollars.
The distribution of money in circulation at the end of the eleventh month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 197 836 dollars;
- Amount of budget funds 730 786 dollars (taxes paid in this month
171 769 dollars + 559 017 dollars);
- Working capital of all enterprises at the end of the month 2 771 378 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 328 661 dollars;
- Gross profit of 1 407 266 dollars;
- Depreciation of fixed assets 66 063 dollars;
- Invested in capital assets (to reduce) -1 030 612 dollars.
The analysis of economic activity all enterprises in the twelfth month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 20%
Companies are investing their own funds to expand production by 20%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the twelfth month of work.
Estimate the purchasing power of people in the twelfth month.
Cash in the population at the beginning of the month 197 836 dollars.
This month, businesses paid wages amounting to 1 291 232 dollars.
In the previous month are listed all the taxes in the amount of 730 786 dollars.
Total purchasing power of the population was 2 219 854 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 17 810 dollars.
The second offers the people to buy water in the amount of 44 529 dollars.
The fifth company offers passenger service in the amount of 356 237 dollars.
Shop offers a variety of goods at 1 562 991 dollars.
Cafe offers meals for the sum of 561 069 dollars.
Total proposed goods and services amounting to 2 542 636 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 2 219 854 dollars.
Citizens are asked to buy goods and services amounting to 2 542 636 dollars.
Since the demand was lower than the proposal, goods and services were sold, not all.
Goods and services were sold at 2 219 854 dollars.
The balance of unsold goods at the end of this month was in the amount of 322 782 dollars.
At the hands of the people after the acquisition of goods and services should remain 0 dollars.
The distribution of money in circulation at the end of the twelfth month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population 0 dollars.
- Amount of the budget of 840 720 dollars (taxes paid in this month
209 029 dollars + 631 691 dollars);
- Working capital of all enterprises at the end of the month 2 859 280 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 771 378 dollars;
- Gross profit of 1 267 430 dollars;
- Depreciation of fixed assets 74 649 dollars;
- Invested in capital assets (to reduce) -1 254 177 dollars,
The analysis of economic activity all enterprises in the thirteenth month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 20%
Companies are investing their own funds to expand production by 20%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the thirteenth month.
Estimate the purchasing power of the population in the thirteenth month.
The balance of funds from the population at the beginning of the month long 0 dollars.
This month, businesses paid wages amounting to 1 216 690 dollars.
In the previous month are listed all the taxes in the amount of 840 720 dollars.
Total purchasing power of the population was 2 057 410 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 20 303 dollars.
The second offers the people to buy water at 50 763 dollars.
The fifth company offers passenger service in the amount of 406 110 dollars.
Shop offers a variety of goods at 1 781 810 dollars.
Cafe offers meals for the sum of 639 618 dollars.
The balance of unsold goods and services at the beginning of month 322 782 dollars.
Total proposed goods and services amounting to 3 221 386 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 2 057 410 dollars.
Citizens are asked to buy goods and services amounting to 3 221 386 dollars.
Since the demand was lower than the proposal, goods and services were sold, not all.
Goods and services were sold at 2 057 410 dollars.
The balance of unsold goods at the end of this month amounted to 1 163 976 dollars.
At the hands of the people after the acquisition of goods and services should remain 0 dollars.
The distribution of money in circulation at the end of the thirteenth month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population 0 dollars;
- Amount of budget funds 907 356 dollars (taxes paid in this month
187 229 dollars + 720 127 dollars);
- Working capital of all enterprises at the end of the month 2 792 644 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 859 280 dollars;
- Gross profit in the amount of 971 650 dollars;
- Depreciation of fixed assets 85 098 dollars;
- Invested in capital assets (to reduce) -1 123 384 dollars.
Option «B» the crisis began in the twelfth month, and further developed in the thirteenth month.
Summary table of results of economic activity companies under option "B"
Option «C» includes:
1. Continuing in business 3 700 000 dollars.
2. Free market prices for goods and services.
3. In the first five months, the economy version, «A»:
- Companies are not expanding;
- Stability of the production of goods and services, lack of growth;
- Stability of wages;
- Monthly price increases for goods and services.
4. Starting from the sixth and all subsequent months, the economy version, «B»:
- All companies are investing their own funds to expand production capacity;
- Increasing the number of jobs;
- The stability of prices for goods and services, starting with the seventh month and all subsequent months, prices are saved at the level of the sixth month;
- Starting with the seventh month, and all subsequent months, it is planned to increase production of goods and services.
5. Beginning with the ninth month, and all subsequent months, the economic relations are undergoing the following changes:
- Payments for goods and services between businesses are made at least 4 times a month;
- Wages paid to employees of 4 times per month.
The analysis of economic activity all enterprises in the ninth month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 20%
Companies are investing their own funds to expand production by 20%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the ninth month.
Estimate the purchasing power of people in nine months.
The balance of funds from the population at the beginning of the month 846 839 dollars.
This month, businesses paid wages amounting to 1 086 912 dollars.
In the previous month are listed all the taxes in the amount of 484 506 dollars.
Total purchasing power of the population was 2 418 257 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 11 131 dollars.
The second offers the people to buy water in the amount of 27 829 dollars.
The fifth company offers passenger service in the amount of 222 637 dollars.
Shop offers a variety of goods in the amount of 976 820 dollars.
Cafe offers meals for the sum of 350 649 dollars.
Total proposed goods and services amounting to 1 589 066 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 2 418 257 dollars.
Citizens are asked to buy goods and services amounting to 1 589 066 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold at 1 589 066 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars. At the hands of the people after the acquisition of goods and services is 829 191 dollars.
The distribution of money in circulation at the end of nine months.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 829 191 dollars;
- Amount of budget funds 581 409 dollars (taxes paid in this month
186 624 dollars + 394 785 dollars);
- Working capital of all enterprises at the end of the month 2 289 400 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 368 655 dollars;
- Gross profit in the amount of 993 833 dollars;
- Depreciation of fixed assets 46 656 dollars;
- Invested in capital assets (to reduce) -1 119 744 dollars.
The analysis of economic activity all enterprises in the tenth month.
All the companies have entered into service the fixed assets created by them in the
previous month.
Companies have increased production of goods and services by 20%
Companies are investing their own funds to expand production by 20%. All works to
expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the tenth month.
Estimate the purchasing power of people in the tenth month.
The balance of funds from the population at the beginning of the month 829 191 dollars.
This month, businesses paid wages amounting to 1 304 296 dollars.
In the previous month are listed all the taxes in the amount of 581 409 dollars.
Total purchasing power of the population was 2 714 896 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 13 357 dollars.
The second offers the people to buy water in the amount of 33 395 dollars.
The fifth company offers passenger service in the amount of 267 164 dollars.
Shop offers a variety of goods at 1 172 184 dollars.
Cafe offers meals for the sum of 420 780 dollars.
Total proposed goods and services amounting to 1 906 880 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 2 714 896 dollars.
Citizens are asked to buy goods and services amounting to 1 906 880 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold at 1 906 880 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars.
At the hands of the people after the acquisition of goods and services is 808 016 dollars.
The distribution of money in circulation at the end of the tenth month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 808 016 dollars;
- Amount of budget funds 697 691 dollars (taxes paid in this month
223 949 dollars + 473 742 dollars);
- Working capital of all enterprises at the end of the month 2 194 293 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 289 400 dollars;
- Gross profit of 1 192 599 dollars;
- Depreciation of fixed assets 55 987 dollars;
- Invested in capital assets (to reduce) -1 343 693 dollars.
The analysis of economic activity all enterprises in the eleventh month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 20%
Companies are investing their own funds to expand production by 20%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the eleventh month.
Estimate the purchasing power of people in the eleventh month.
The balance of funds from the population at the beginning of the month 808 016 dollars.
This month, businesses paid wages amounting to 1 565 156 dollars.
In the previous month are listed all the taxes in the amount of 697 691 dollars.
Total purchasing power of the population was 3 070 863 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 16 028 dollars.
The second offers the people to buy water in the amount of 40 074 dollars.
The fifth company offers passenger service in the amount of 320 597 dollars.
Shop offers a variety of goods at 1 406 621 dollars.
Cafe offers meals for the sum of 504 936 dollars.
Total proposed goods and services amounting to 2 288 256 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 3 070 863 dollars.
Citizens are asked to buy goods and services amounting to 2 288 256 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold at 2 288 256 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars.
At the hands of the people after the acquisition of goods and services is 782 607 dollars.
The distribution of money in circulation at the end of the eleventh month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 782 607 dollars;
- Amount of budget funds 837 228 dollars (taxes paid in this month
268 736 dollars + 568 492 dollars);
- Working capital of all enterprises at the end of the month 2 080 165 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 194 293 dollars;
- Gross profit of 1 431 119 dollars;
- Depreciation of fixed assets 67 182 dollars;
- Invested in capital assets (to reduce) -1 612 429 dollars.
The analysis of economic activity all enterprises in the twelfth month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 20%
Companies are investing their own funds to expand production by 17%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the twelfth month.
Estimate the purchasing power of people in the twelfth month.
The balance of funds from the population at the beginning of the month 782 607 dollars.
This month, businesses paid wages amounting to 1 636 319 dollars.
In the previous month are listed all the taxes in the amount of 837 228 dollars.
Total purchasing power of the population was 3 256 154 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 19 234 dollars.
The second offers the people to buy water in the amount of 48 089 dollars.
The fifth company offers passenger service in the amount of 384 716 dollars.
Shop offers a variety of goods at 1 687 947 dollars.
Cafe offers meals for the sum of 605 925 dollars.
Total proposed goods and services amounting to 2 745 911 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 3 256 154 dollars.
Citizens are asked to buy goods and services amounting to 2 745 911 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold at 2 745 911 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars.
At the hands of the people after the acquisition of goods and services is 510 243 dollars.
The distribution of money in circulation at the end of the twelfth month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 510 243 dollars;
- Amount of budget funds 956 306 dollars (taxes paid in this month
274 115 dollars + 682 191 dollars);
- Working capital of all enterprises at the end of the month 2 233 451 dollars, Including:
Working capital of all enterprises at the beginning of the month 2 080 165 dollars;
- Gross profit of 1 717 347 dollars;
- Depreciation of fixed assets 80 617 dollars;
- Invested in capital assets (to reduce) -1 644 678 dollars.
The analysis of economic activity all enterprises in the thirteenth month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 17%.
Companies are investing their own funds to expand production by 15%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the thirteenth month.
Estimate the purchasing power of the population in the thirteenth month.
The balance of funds from the population at the beginning of the month 510 243 dollars.
This month, businesses paid wages amounting to 1 725 842 dollars.
In the previous month are listed all the taxes in the amount of 956 306 dollars.
Total purchasing power of the population was 3 192 391 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 22 504 dollars.
The second offers the people to buy water in the amount of 56 264 dollars.
The fifth company offers passenger service in the amount of 450 118 dollars.
Shop offers a variety of goods at 1 974 897 dollars.
Cafe offers meals for the sum of 708 930 dollars.
The balance of unsold goods and services at the beginning of month 0 dollars.
Total proposed goods and services amounting to 3 212 713 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 3 192 391 dollars.
Citizens are asked to buy goods and services amounting to 3 212 713 dollars.
Since the demand was lower than the proposal, goods and services were sold, not all.
Goods and services were sold at 3 192 391 dollars.
The balance of unsold goods at the end of this month amounted to the sum of 20 322 dollars.
At the hands of the people after the acquisition of goods and services should remain 0 dollars.
The distribution of money in circulation at the end of the thirteenth month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 0 dollars;
- Amount of the budget 1 081 145 dollars (taxes paid in this month
282 982 dollars + 798 163 dollars);
- Working capital of all enterprises at the end of the month 2 618 855 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 233 451 dollars;
- Gross profit of 1 988 972 dollars;
- Depreciation of fixed assets 94 322 dollars;
- Invested in capital assets (to reduce) -1 697 890 dollars.
The analysis of economic activity all enterprises in the fourteenth month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 15%
Companies are investing their own funds to expand production by 16%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the fourteenth month.
Estimate the purchasing power of the population in the fourteenth month.
The balance of funds from the population at the beginning of the month 0 dollars.
This month, businesses paid wages amounting to 2 093 191 dollars.
The previous month, paid taxes of 1 081 145 dollars.
Total purchasing power of the population was 3 174 336 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 25 880 dollars.
The second offers the people to buy water in the amount of 64 704 dollars.
The fifth company offers passenger service in the amount of 517 636 dollars.
Shop offers a variety of goods amounting to 2 271 131 dollars.
Cafe offers meals for the sum of 815 268 dollars.
The balance of unsold goods and services at the beginning of the month 20 322 dollars.
Total proposed goods and services amounting to 3 714 941 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 3 174 336 dollars.
Citizens are asked to buy goods and services amounting to 3 714 941 dollars.
Since the demand was lower than the proposal, goods and services were sold, not all.
Goods and services were sold at 3 174 336 dollars.
The balance of unsold goods at the end of this month was in the amount of 540 605 dollars.
At the hands of the people after the acquisition of goods and services should remain 0 dollars.
The distribution of money in circulation at the end of the fourteenth month.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 0 dollars;
- Amount of the budget 1 265 010 dollars (taxes paid in this month
347 123 dollars + 917 887 dollars);
- Working capital of all enterprises at the end of the month 2 434 990 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 618 855 dollars;
- Gross profit of 1 790 407 dollars;
- Depreciation of fixed sredstv108 470 dollars;
- Invested in capital assets (to reduce) -2 082 742 dollars.
The analysis of economic activity all enterprises in the fifteenth month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 16%.
Companies are investing their own funds to expand production by 12%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the fifteen months.
Estimate the purchasing power of the population in the fifteenth month.
The balance of funds from the population at the beginning of the month long 0 dollars.
This month, businesses paid wages amounting to 1 924 775 dollars.
The previous month the taxes are only 1 265 010 dollars.
Total purchasing power of the population was 3 189 785 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 30 021 dollars.
The second offers the people to buy water on the amount of 75 057 dollars.
The fifth company offers passenger service in the amount of 600 458 dollars.
Shop offers a variety of goods amounting to 2 634 510 dollars.
Cafe offers meals for the sum of 945 711 dollars.
The balance of unsold goods and services at the beginning of month 540 605 dollars.
Total proposed goods and services amounting to 4 826 362 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 3 189 785 dollars.
Citizens are asked to buy goods and services amounting to 4 826 362 dollars.
Since the demand was lower than the proposal, goods and services were sold, not all.
Goods and services were sold at 3 174 336 dollars.
The balance of unsold goods at the end of this month amounted to 1 636 577 dollars.
At the hands of the people after the acquisition of goods and services should remain 0 dollars.
The distribution of money in circulation at the end of fifteen months.
As mentioned above, the turnover is 3 700 000 dollars.
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 0 dollars.
- Amount of the budget 1 366 744 dollars (taxes paid in this month
301 995 dollars + 1 064 749 dollars);
- Working capital of all enterprises at the end of the month 2 333 256 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 434 990 dollars;
- Gross profit of 1 584 431 dollars;
- Depreciation of fixed assets 125 821 dollars;
- Invested in capital assets (to reduce) -1 811 986 dollars.
Option «C» the crisis began in the thirteenth month, and continued to grow in the fourteenth and fifteenth months.
Summary table of results of the economic activity of variant «C».
Chapter 5.
The first conclusion.
Let's try to analyze the first results.
I have created a model of an imaginary state. In this country a functioning central state bank. The Central Bank issued in treatment 3 700 000 dollars. Initially, in a society lacking the capitalist economic relations. Everything you need for life, people create themselves, their job. The exchange of goods takes place through money. At one time, all the money,
3 700 000 dollars, concentrated in the hands of a small group of people. These people have decided to create ten different businesses and invest in them all his money.
We have analyzed the development of economic relations in our country for fifteen months in three versions, tracked the movement of money.
Let's go back to our analysis and summarize the results of developments in all three versions.
At the time of emergence of capitalist economic relations, in the process of enterprise creation, the means of production, the bulk of the money (2 700 000 dollars) Was paid to workers who took part in the creation of means of production. In addition, during the creation of means of production, all companies pay taxes on the amount of 540 000 dollars. The total amount of taxes paid has been remitted to the state budget. Then the money in full have been spent on paying salaries to government staff.
Thus, by the time the start of production of all enterprises and the realization of their products, at the hands of the population concentrated money in the amount of 3 240 000 dollars (2 700 000 dollars + 540 000 dollars). In other words the purchasing power of citizens amounted to 3 240 000 dollars. We assume that all firms started their production and sales of goods and services at the same time.
Option "A".
Option «A» - the most primitive version of the development of economic relations.
Option «A» includes:
- Continuing in business 3 700 000 dollars;
- Companies are not expanding;
- Stability of the production of goods and services, lack of growth;
- Stability of wages;
- Free-market prices for goods and services.
A significant excess of demand over the proposal has led to monthly (from 1 to 7 months) increase in the prices of goods and services.
Each month, the total amount of wages of employees of enterprises and the wages of public servants were less than the total amount proposed for the realization of the citizens of the goods and services. For this reason, the purchasing power of citizens of every month was becoming less and less. The crisis began in the seventh month.
Option "B"
Option "B" differs from the previous existence of the growth of production capacity, increase the number of jobs and growth in the production of goods and services.
Option «B» includes:
1. Continuing in business 3 700 000 dollars.
2. Free market prices for goods and services.
- Companies are not expanding;
- Stability of the production of goods and services, lack of growth;
- Stability of wages;
- Monthly price increases for goods and services.
4. Starting from the sixth and all subsequent months, the economic relations are undergoing the following changes:
- All companies are investing their own funds to expand production capacity;
- Increasing the number of jobs;
The stability of prices for goods and services, starting with the seventh month and all subsequent months, prices are saved at the level of the sixth month;
- Starting with the seventh month and all subsequent months is planned to increase production of goods and services.
Each month, the total amount of wages of employees of enterprises and the wages of public servants were less than the total amount proposed for the realization of the citizens of the goods and services. For this reason, the purchasing power of citizens of every month was becoming less and less. Unlike the version of «A», the crisis did not begin in the seventh month, and in the twelfth.
Option «C».
Option «C» is different from the previous view that transactions between businesses for goods and services as well as payment of wages to employees of enterprises is not one, but four times a month. This has allowed companies to invest more money into expanding production.
Option «C» includes:
1. Continuing in business 3 700 000 dollars.
2. Free market prices for goods and services.
- Companies are not expanding;
- Stability of the production of goods and services, lack of growth;
- Stability of wages;
- Monthly price increases for goods and services.
4. Starting from the sixth and all subsequent months, the economy version, «B»:
- All companies are investing their own funds to expand production capacity;
- Increasing the number of jobs;
- The stability of prices for goods and services, starting with the seventh month and all subsequent months, prices are saved at the level of the sixth month;
- Starting with the seventh month, and all subsequent months, it is planned to increase production of goods and services.
5. Beginning with the ninth month, and all subsequent months, the economic relations are undergoing the following changes:
- Payments for goods and services between businesses are made at least 4 times a month;
- Wages paid to employees of 4 times per month.
Each month, the total amount of wages of employees of enterprises and the wages of public servants were less than the total amount proposed for the realization of the citizens of the goods and services. For this reason, the purchasing power of citizens of every month was becoming less and less. Unlike the version of «B», the crisis did not begin in the twelfth month and in the thirteenth.
All I have described thus far measures (expansion of production, accelerating the turnover of financial assets) is currently used by most enterprises in real life. But the companies do not have the goal of preventing the crisis, they do so only in order to further enrichment. Nevertheless, the above measures can delay onset of the crisis at a later date and make the joining of the economy in crisis more lenient. So far I have not invented anything new. The most important and interesting is still ahead.
At the outset of his book, I wondered where the money go? Why in times of crisis no one has the money? See how to distribute money in a time of crisis, at the end of the fifteenth month (Option "C"). Companies have not enough money to expand their production, the citizens do not have the money, only in the State budget has focused not small amount of money
Let's try to remember what was the real economic situation in the world in 2008? Money is not enough nor to whom. The money was only in the State budget. It is from the state budget leaders of various countries have provided loans to support those or other firms, banks. A lot of funds have been allocated to support the citizens?
Chapter 6.
The main conclusion.
In all three versions of "A", "B" and "C" cause of the economic crisis was the imbalance market of consumer goods and services due to lack of capacity to pay of citizens. People simply do not have enough money to buy all the proposed for the realization of goods and services. Overproduction of commodities can not be at all. If citizens have the money - they can buy any quantity of goods and services!
It seemed that all the known ways of preventing the crisis have been exhausted. What new steps society can take to address the crisis and its exclusion in the future?
I'm not vain, so often talked about the purchasing power of citizens (the people). Ideally, the purchasing power of citizens (the people) should be Rovná the sum of all goods and services proposed for the realization of the population. To eliminate the crisis and its impact, it is necessary to remove the causes of the crisis, that is, to balance the market for consumer goods and services. To do this, print the amount of money equal to the difference between the proposals of all goods and services to the population and purchasing power of citizens (the people). This money should be distributed to citizens! For information on how to make it better, I will say below, in Chapter 14.
After receiving the money, people will go to the shop and cafe. They buy needed goods and services. Out of the shop and cafe, the money will be on the turnover of suppliers of goods and services. Thus the economy begins to function normally again. You must understand that such actions should be done every month. This way you can avoid future crises.
Verify correctness of our reasoning. To this end, the economy of our state to create and analyze a situation in which the central bank, will be a monthly print and distribute the money to citizens in the amount necessary to balance the market of consumer goods and services. Let it be a variant of "D".
Let us analyze the results of economic development for option "D".
Option «D» includes:
1. From the first, and all subsequent months, the economy of variant «C»;
The analysis of economic activity all enterprises in the sixteenth month.
All the companies have entered into service the fixed assets created by them in the previous month. Companies have increased production of goods and services by 12% Companies are investing their own funds to expand production by 9%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
The economic performance of all enterprises in the sixteenth month.
The balance of funds from the population at the beginning of the month long 0 dollars.
Issued by the citizens of allowances and other subsidies 3 400 000 dollars.
This month, businesses paid wages amounting to 1 732 955 dollars.
The previous month the taxes are only 1 366 744 dollars.
Total purchasing power of the population was 6 499 699 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 33 624 dollars.
The second offers the people to buy water in the amount of 84 064 dollars.
The fifth company offers passenger service in the amount of 672 513 dollars.
Shop offers a variety of goods amounting to 2 950 650 dollars.
Cafe offers meals for 1 059 195 dollars.
The balance of unsold goods and services at the beginning of month 1 636 577 dollars.
Total proposed goods and services in the amount of 6 436 623 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 6 499 699 dollars.
Citizens are asked to buy goods and services in the amount of 6 436 623 dollars.
As the demand has more suggestions, all goods and services were sold completely. Goods and services were sold for the sum of 6 436 623 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars.
At the hands of the people after the acquisition of goods and services is 63 076 dollars.
The distribution of money in circulation at the end of the sixteenth month.
In the turnover is 7 100 000 dollars (3 700 000 dollars + 3 400 000 dollars).
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 63 076 dollars;
- Amount of the budget 1 446 196 dollars (taxes paid in this month
253 676 dollars + 1 192 520 dollars);
- Working capital of all enterprises at the end of the month 5 590 728 dollars, Including:
- Working capital of all enterprises at the beginning of the month 2 333 256 dollars;
- Gross profit in the amount of 4 638 624 dollars;
- Depreciation of fixed assets 140 919 dollars;
- Invested in capital assets (to reduce) -1 522 071 dollars.
The analysis of economic activityall enterprises in the seventeenth month.
All the companies have entered into service the fixed assets created by them in the previous month.
Companies have increased production of goods and services by 9%
Companies are investing their own funds to expand production by 20%. All works to expand production and create additional jobs, payroll and business tax in the budget are made during the current month.
Economic results activities of all enterprises in the seventeenth month.
The balance of funds from the population at the beginning of the month 63 076 dollars.
Issued benefits to citizens and other grants 150 000 dollars.
This month, businesses paid wages amounting to 3 578 695 dollars.
The previous month the taxes are only 1 446 196 dollars.
Total purchasing power of the population was 5 237 967 dollars.
Estimate the saturation of the market in goods and services in monetary terms.
The first offers the people of electricity amounting to 36 650 dollars.
The second offers the people to buy water in the amount of 91 630 dollars.
The fifth company offers passenger service in the amount of 733 039 dollars.
Shop offers a variety of goods in the amount of 3 216 209 dollars.
Cafe offers meals for 1 154 523 dollars.
The balance of unsold goods and services at the beginning of month 0 dollars.
Total proposed goods and services amounting to 5 232 051 dollars.
The state of the market of consumer goods and services.
The purchasing power of the population was 5 237 967 dollars.
Citizens are asked to buy goods and services amounting to 5 232 051 dollars.
As the demand has more suggestions, all goods and services were sold completely.
Goods and services were sold for the sum of 5 232 051 dollars.
The balance of unsold goods and services at the end of the month in the amount of 0 dollars. At the hands of the people after the acquisition of goods and services is 5 916 dollars.
The distribution of money in circulation at the end of the seventeenth month.
In the turnover is 7 250 000 dollars (7 100 000 dollars + 150 000 dollars).
As a result of the sale of goods and services all the money had been allocated as follows:
- At the hands of the population of 5 916 dollars;
- Amount of the budget 1 914 313 dollars (taxes paid in this month
614 466 dollars + 1 299 847 dollars);
- Working capital of all enterprises at the end of the month 5 329 771 dollars, Including:
- Working capital of all enterprises at the beginning of the month 5 590 728 dollars;
- Gross profit amounting to 3 272 235 dollars;
- Depreciation of fixed assets 153 599 dollars;
- Invested in capital assets (to reduce) -3 686 791 dollars.
The analysis of economic activity all enterprises in the eighteenth - the thirtieth months.
In subsequent months, the bank continues to print and issue the citizens money.
All businesses are continuing to strengthen its capacity and the output of goods and services. The results of their economic activities are summarized in the table with № 17D - № 30D.
Economic results activities of all enterprises in the 18 - 30 months.
See a tables № 18D - № 30D.
1. The economic crisis that began in the thirteenth month, was liquidated in the sixteenth month.
2. After the crisis, beginning with the sixteenth month and all subsequent months:
- The economy was in a stable development;
- Every month the central bank prints money;
- Citizens are compensated;
- Steady growth in production of goods and services;
- All companies have real earnings.
The state is thriving. No signs of crisis.
There are people who will argue that the printing of money leads to inflation. This is not always the case. Inflation can only be provided when the purchasing power of the population will be more than the amount proposed for sale of goods and services. If supply and demand are balanced, inflation is not possible.
Table № 31D shows a summary of the results of industrial and economic activities of all companies under option «D».
The combined data for 1- 30 months, see table № 31D.
Click on the table to watch.
Chapter 7.
A simple example.
For those to whom my book seemed tedious and boring, I will cite only one simple example.
Imagine that you and another ten people, as a result of shipwreck landed on an uninhabited island. You live together, one family, eats what gives you the island, collect fruit, catch fish. But suddenly you find in your jacket 300 dollars. What to do with the money on the island?
You decided to open his business for the production of rods for fishing. You hire workers. Six people took up this work and produced 6 rods, each of them you pay 50 dollars. Total wages for your employees is 300 dollars. The money you no longer have. Now is your task to sell these rods and make a profit. You sell rods at a price of 75 dollars apiece. At the same time you plan to make a profit 50%, or 150 dollars. You put on the sale of goods worth 450 dollars. The Islanders do not have such sums of money. They have only 300 dollars. Because they have no other means, they can buy goods only at 300 dollars. As a result, they buy only 4 rods for 75 dollars total for the sum of 300 dollars. Planned profit 150 dollars you did not receive. Instead of profits, you have unsold goods in the amount of 150 dollars.
You do not know what to do next. You will again run the money in the production of rods and sell them under the same conditions. As a result you have on hand is already 4 rods in the amount of 300 dollars, but no real profit.
And here comes the miracle! The islanders catch casket. There they find the money, exactly 300 dollars! The islanders are buying at the money your stale merchandise. Casket in this example has fulfilled the role of the central bank. You sold all the goods (rods). Now you got a real profit in the amount of 300 dollars! Now you can think about expanding their production.
But the event could grow and different scenario. The man who found the money, too, opened his business. His company also produces rods. But it pays workers 30 dollars for each rods. All of his workers to produce 10 rods. Each of you has paid its workers for 300 dollars. As a result, at the hands of the Islanders was the amount of money 600 dollars. You sell rods at a price of 75 dollars per piece, your competitor at a price of 60 dollars apiece. Naturally, the buyers will not to you. Buyers will go to your competitor. Your competitor will sell the entire product, and you stay out of money, though with a product.
If the national economy, the turnover, there is one and the same amount of money and it does not change, in these circumstances, a real profit or not possible at all, or perhaps only due to the devastation of other companies or citizens.
Chapter 8.
The problems of applying the knowledge gained in practice.
In real life, all is not as easy as it was in my examples. Do you have a lot of problems when calculating the amount of money needed to restore the solvency of the population.
The first problem: you do not know what will make people or businesses in the near future (tomorrow, next week, next month), how they will react to various events. The real profit is at the disposal of businesses. Companies can invest profits in expanding their production, profits can be invested in buying shares in other companies, profits paid to shareholders as dividends on shares. All this is impossible to predict in advance.
The second problem: when performing the calculations must take into account the need to establish the technological stock of goods in warehouses.
The third problem: it is necessary to take into account the peculiarities of the expenses of citizens. Citizens do not spend all the money immediately, but do so only as needed. That is why some money is always in the hands of citizens. Part of the money will stay in the bank as savings for the commission of major purchases.
Of all of the foregoing, it can be only one conclusion: it is impossible to accurately calculate the amount of money necessary to maintain the solvency of the population. It is therefore necessary to continuously monitor the following economic indicators:
- The availability of finished consumer goods in monetary terms, in all warehouses of various companies in industry, agriculture, shops and public catering;
- Dynamics of growth (or decrease) the production of consumer goods;
- Dynamics of growth (or decline) of total profits;
- The dynamics of income taxes and other mandatory payments to the budget;
- Dynamics of growth of aggregate wages and other incomes of citizens (the people).
Chapter 9.
The formula for calculating the amount of money needed to restore the purchasing power of citizens.
I was able to deduce a formula which takes into account all the requirements
mentioned above. Application of this formula will help neglected even by factors such as theft, corruption, small fires and natural disasters that occur in any state quite regularly. The calculation should be done every month
Here is the formula:
S=A1+B1+A1х(A1-A2)/A2+B1х(B1-B2)/B2+A3-A4-C1-C1х(C1-C2)/C2+D1+D1х(D1-D2)/D2+E1+E1х(E1-E2)/E2-E3-E3х(E3-E4)/E4-F1-F1х(F1-F2)/F2+F3+F3х(F3-F4)/F4-G1, where:
S - the amount required to restore the purchasing power of citizens,
A1 – amount by which the commodity was produced products of all enterprises in the previous month, retail prices (only consumer goods),
A2 - amount by which the commodity was produced products of all enterprises, two months earlier than in the retail price (only consumer goods),
A3 – the balance of unsold goods at the end of the previous month in the retail price (only ready for the implementation of consumer goods).
A4 – amount of normative technological stock of consumer goods in warehouses to retail prices.
B1 – amount of services sold to citizens in the previous month.
B2 – amount of services sold to citizens two months earlier.
C1 – the sum of all income received by citizens in the previous month.
C2 – the sum of all income received by citizens, two months earlier.
D1 – amount of money that people paid in the previous month in payments for goods purchased by them previously, including mortgage lending.
D2 – amount of money that citizens have paid two months earlier in payments for goods purchased by them previously, including mortgage lending.
E1 – deposits in the banks of the citizens in the previous month.
E2 - deposits in the banks of the citizens of the two months earlier.
E3 – amount of deposits, the banks returned to citizens in the previous month, taking into account the interest paid on deposits.
E4 – amount of deposits, the banks returned to citizens, two months earlier, taking into account the interest paid on deposits.
F1 – amount received by citizens from various sources in the form of loans, mortgages and loans in the previous month.
F2 – amount received by citizens from various sources in the form of loans, mortgages and loans, two months earlier.
F3 – amount of money that the citizens (the people) have paid the credit organizations in the repayment of loans, repayment of loans and mortgages, taking into account the interest paid for using a credit or a mortgage in the previous month.
F4 – amount of money that the citizens (the people) have paid the credit organizations in the repayment of loans, repayment of loans and mortgages, taking into account the interest paid for using a credit or a mortgage, two months earlier.
G1 – amount of money remaining in the hands of the citizens at the end of the previous month.
The amount of money remaining in the hands of citizens in the previous month-end (G1) is calculated using the following formula:
G1 = G2 + C1 – D1 – E1 + E3 + F1 – F3 – A1 + A3 – A5, where:
G2 – amount of money remaining in the hands of the citizens at the beginning of the previous month.
A5 – the balance of unsold goods at the beginning of last month in retail prices (only for the realization of finished consumer goods).
In time of crisis, when the first calculation, the G1 is taken to 0. When calculating the second month, the G2 is taken to 0.
For example, our model, I will check the proposed formula. To this end, the economy of our state to create and analyze a situation in which the central bank, will be a monthly print and distribute the money to citizens in an amount calculated by the formula proposed by me. Let it be a version of "E".
Chapter 10.
Let us analyze the results of economic development variant of "E".
Option «E» includes:
1. From the first and all subsequent months, developments on the variant «C»;
2. In the sixteenth month, and all subsequent months, each month, the central bank prints money and gives the citizens in the amount calculated for the proposed by me in the previous chapter, a formula.
The analysis of economic activity all enterprises in the sixteenth - the thirtieth months.
Beginning in the sixteenth month and all subsequent months, the bank prints money and gives the citizens in the amount calculated under the formula proposed by me. All businesses are continuing to increase their production capacity and the output of goods and services. The results of their economic activities are summarized in Tables № 16E - № 30E.
Economic results activities of all enterprises in the 16 - 30 months of work.
1. The economic crisis that began in the thirteenth month, was liquidated in the sixteenth month.
2. After the crisis, beginning with the sixteenth month and all subsequent months:
- the economy was in a stable development
- at the end of each month at the hands of the citizens have a sum of money (no more than 25% of the total amount of realization in the previous month)
- Is available at the warehouses of the technological stock of consumer goods (not to exceed 25% of manufactured goods in the previous month).
- Steady growth (15%), production of consumer goods and services
- a steady increase in the implementation of consumer goods and services
I want to particularly emphasize the following:
2. All income citizens (the people) should be taken into account in full, regardless of the sources of income and employment. In addition to wages, it is necessary to take into account the payment of dividends on shares, income from participation in the enterprise, different kinds of prizes and awards, royalties, pensions, allowances and other income.
The State must continuously monitor the state of the economy as a whole. It is necessary to pay particular attention to balance demand and supply of consumer goods and services. According to the results of monitoring may be necessary to adjust the estimated amount of money needed to restore the purchasing power of citizens.
In all the examples of such indicators as growth in output in the 15-20% per month, an increase in profits in the 15-20% per month, I have deliberately overestimated. This is done to reduce the number of calculations and tables, to speed up all processes in the economy. In practice, all processes proceed much slower. A small error in calculating the amount of money needed to restore the purchasing power of citizens can be corrected in the next month. It is important that any mistake is not repeated from month to month regularly. To ensure that this does not happen and the need to constantly monitor the state of the economy, that allows to adjust the calculations made.
Chapter 11.
The activities of banks and other lending organizations.
In my research, in all calculations and tables are not taken into account the activities of banks and other credit organizations. Although in my formula for calculating the amount of money needed to restore the purchasing power of citizens of their activities recorded. I deliberately did not consider them, desiring to facilitate the calculations and tables, to simplify the relationship between the parties to economic relations, facilitate the analysis and conclusions.
In fact, banks and other lending institutions are institutions which accumulate free funds, both enterprises and citizens. Means available to them, banks and other lending institutions give both enterprises and individuals on credit, at interest. In doing so, they earn and create their own capital. They do not produce marketable products, and participate only in the redistribution of money in circulation in the State
Positive in their activities is that they create their own jobs, pay wages to their employees and thus increase the purchasing power of citizens in general.
A negative factor for them is that in pursuit of maximum profit, they sometimes give loans without regard to their possible return. Not so terrible if a credit was issued by the organization, which typically has a property which, if necessary, may be alienated by bank or another credit institution in order to repay the debt on the loan. Much worse, when citizens are gaining credit in different banks without any restriction and without regard to their ability to pay and as a result they are unable to pay on all loans.
Positive, in my opinion, is the experience of the former
- A citizen could obtain no more than one loan;
- A new loan, he could get only after repayment of the previous;
- Repayment of the loan occurred in uncontested order by withholding from the income accounting citizen at his place of work;
- To obtain credit citizen should have given credit to the organization of a certificate of accounting of the company where he works, the income and deduction, which are produced due to the circumstances of these revenues. Under the legislation of the
Thus the problems with repayment of loans received by citizens in the
Chapter 12.
As the crisis is destroying the economy?
Citizens suffer first. The citizens are suffering due to loss of purchasing power. The decline in purchasing power of citizens leads to the imbalance between supply and demand in the market of consumer goods and services, which in turn was the cause of economic crisis.
In this situation, companies that sell their products and services directly to the public, losing part of their profits may suffer losses. As a result, they are forced to reduce purchases of goods and services from their suppliers, the manufacturing companies.
Industrial enterprises producing consumer goods and performing services for the population as a result of reduced purchases of their products trading organizations are losing profits and are forced to reduce its production.
Manufacturing companies are forced to reduce the purchase of raw materials.
In all enterprises of declining production and the consequent dismissal of workers. Continues to decrease and the purchasing power of people. The events are increasing, as the snowball and the process no end in sight.
Reducing income tax exemption is the cause of the insolvency of credit. Citizens are growing debts to banks and other credit organizations. This situation can cause a crisis of the banking system.
A typical picture of the development crisis of the economy under capitalism.
Chapter 13.
The economic crisis and the global economy.
In today's global economy, economic relations of enterprises around the world are closely intertwined. At the same time in different States, economic development occurs in different ways. In some countries (industrialized countries) promoted the production of basic goods and services to the public. In some countries, international tourism is the foundation of their economies. There is a state with a predominant development of agrarian sector of economy. There are States whose economies are built on the export of their raw materials to other countries. Naturally, in such a situation, the global economic crisis in different countries will show itself in different ways.
Since in normal circumstances, the cause of the economic crisis is to reduce the purchasing power of citizens, which leads to the imbalance between supply and demand in the market of consumer goods and services and ultimately to the crisis economies, this situation can arise in any country, anywhere in the world. Economic crisis may limit the boundaries of one country may spread to several states, may encompass the entire global economic system. It depends on the degree of participation in the global economic system, the economy of the state affected by the crisis. The greater the degree of participation in the global economic system, the economy of the state affected by the crisis, the greater the impact this crisis will have on the world economy.
Chapter 14.
The recommended list of measures aimed at eliminating the global economic crisis and its impact
The elimination of the crisis and its consequences must begin with the reconstruction of industry and economy of all countries affected by the crisis, and especially large, industrialized world. In order to restore the industry, governments of all countries in the world, especially the need to restore the balance between supply and demand in the market of consumer goods and services, each in their own country. To restore the balance between supply and demand in the market of consumer goods and services, you must calculate the amount of money needed to restore the solvency of the citizens (the people) of the country. The formula for calculating the amount of money needed to restore the purchasing power of citizens, are given in Chapter
If the government does not have the data necessary to perform the above calculations, the amount of money necessary to restore the purchasing power of population can be calculated as the difference between the amount of stocks of consumer products available at warehouses and stores to date, and the amount of sales of consumer goods and services the previous month. This calculation is less precise, but it will allow faster start to carry out activities to eliminate the crisis and its impact in the country. In the future, it will be possible to fix the situation. It is important, as early as possible, begin to move in the right direction!
Calculated the amount of money is urgently needed to print and send the most needy citizens. This can be done as follows:
- Increase the amount of pension for pensioners and disabled people;
- Increased unemployment benefits;
- Increase the allowance for large families;
- To pay current payments on the mortgage loans of citizens with low incomes;
- To increase the salaries of employees of the public sector (teachers, doctors, etc.);
- Pay the cost of children in institutions.
This is not an exhaustive list of the ways in which the State may refer citizens to the amount of money necessary to restore their purchasing power.
I draw your attention to sections of the population with low incomes, because the need to acquire different kinds of goods and services from them more than other segments of the population and they are sure to spend the money on essential goods and thus encourage the development of those enterprises which produce the most appropriate for the population of socially important goods.
The proposed measures would not only lead the country out of crisis, but also create favorable social environment in the society, raise the credibility of the Government in the eyes of its own citizens.
Chapter 15.
The recommended list of measures aimed at preventing economic crises in the future.
To ensure that the economic crisis will not ruin our state in the future and does not cause harm to people, I propose to introduce the practice of economic relations on an ongoing basis, the following activities:
1. The State must continuously monitor the state of the balance of supply and demand in the market of consumer goods and services.
2. Regularly, without waiting for a crisis situation, to undertake measures to restore the solvency of the citizens. Organize the collection of data and determine the frequency, order and terms of payment the amount of money needed to restore the purchasing power of citizens to determine the manner and means of transferring money to citizens.
3. I propose to put into practice a new concept and the economic indicator: «level of social protection» of the company. This indicator reflects the ratio of the sum of all the social costs of the company to the amount of profits remaining after payment to the owners and with the budget.
To calculate this figure, I propose the following formula:
Sp = (B + C + D + E) / (A-B-C), where:
Sp - The level of social protection;
A. - Profit of the company, received during the reporting period;
B - income earned by citizens at the expense of profits during the period (revenues from participation in the activities of the company, dividends, various bonuses, promotion, etc.), except for the entitlements, reimbursable from the state budget, such as pensions, benefits etc.
C - Amount of payments to the budget, paid by the company in profit for the period (penalties, fines, taxes, etc.).
D - the income of citizens, received from the payroll of the company during the reporting period (salary, bonuses and other payments), except for the entitlements, reimbursable from the state budget, such as pensions, benefits, etc.
E - the sum of all taxes and mandatory payments paid by the budget during the reporting period.
4. Enter the standard minimum level of social protection for all businesses. Excess amounts of profit, companies must remit to the state budget. Such a measure is necessary to prevent abuse in relation to the application of measures to restore the purchasing power of citizens.
5. Introduce regular reporting of the level of social protection.
6. Remove from the practice of the use of such concepts as «imputed income» because it does not reflect the real situation.
7. Maintain a merciless fight against the shadow economy.
Explanations for paragraphs 3,4 and 5 of this chapter.
The price of any commodity in fact consists of two components: the total wages of workers and the planned profits of all enterprises that took part in the production of these goods (see chapter 2). The higher earnings are planning to get enterprises, the greater will be the price of goods and the greater need of funds to restore the purchasing power of citizens. Therefore, profits must be limited.
Introduction of minimum standards to measure "the level of social protection" allows you to limit the share of aggregate profits of all enterprises in the retail prices of goods and services. This restriction prevents the creation of additional intermediary companies in the supply chain from production to consumption of goods and services, making them the creation of useless in terms of additional profit. Growth of consumer goods and services depend on the level of social protection in the enterprise. Thus, with the introduction of minimum standards to measure "the level of social protection", the state gets their hands on a new tool to regulate the growth of production of certain goods, to influence the market structure of consumer goods and services in the country.
Chapter 16.
CONCLUSION.
Governments of several countries in Europe and
The President of the
All measures taken by governments of different countries, aimed at addressing the symptoms rather than to treat the disease itself.
In conclusion, I wish us all an early exit from the crisis and forge a new society, ignorant of economic crises and other shocks!
Epilogue.
