Preview:
To use presentation previews, create a Google account and log in to it: https://accounts.google.com
Slide captions:
Social studies 8th grade The role of the state in the economy
Goal: Consider the role of the state in the country’s economy. Get acquainted with the taxation system.
Are the statements about entrepreneurial activity true: a) entrepreneurial activity can be carried out alone; b) entrepreneurial activity always allows you to increase your income? 1) Only a is true; 2) only b is true; 3) both judgments are correct; 4) both judgments are incorrect.
Are the judgments about small business correct: a) small business eliminates the risk of bankruptcy; b) does a small business have insignificant expenses for management? 1) Only a is true; 2) only b is true; 3) both judgments are correct; 4) both judgments are incorrect.
Below is a list of terms. All of them, with the exception of one, characterize the concept of “legal entity”. Partnership, individual entrepreneur, joint-stock company, consumer cooperative.
Analyze the types of resources using the table. Land Labor Capital Entrepreneurial abilities Money Hired worker Arable land Machine tools Electric locomotive driver Shares Decision making Mountain river
Lesson plan: Types of economic systems Functions of the state Tax system
Economic system A method of organizing economic activities in the life of society Types of economic systems Traditional Command-administrative Market
TRADITIONAL SYSTEM Natural economy: I produce myself - I consume myself Equalization of distribution No exchange Creation of simple products of the same type Here the state does not interfere in economic relations.
COMMAND SYSTEM The state strictly regulates the production, exchange and distribution of products. Low quality of manufactured products, lack of motivation for workers to work. Administrative methods of orders and requirements for producers are used. Clear plans are established for the production of certain products and provision of services. Here the state completely controls the economy.
MARKET SYSTEM The producer decides for himself what, how, how much to produce The consumer decides for himself what, how, how much to buy The state ensures, within the framework of law, economic order in society The state protects market relations, guarantees order, forces those who act outside the law to bear responsibility, commit crimes.
This is a way of organizing the economic life of society, combining the features of different economic systems with the predominance of one of them. Market economy Traditional economy State regulation MIXED SYSTEM
Functions of the state What economic functions of the state exist? Page 92 – 93 textbooks
Functions of the State State Economy Belief Taxation Benefits Regulation
Functions of the state in the economy stabilization of the economy protection of property rights regulation of monetary circulation redistribution of income regulation of relations between employers and hired workers control of foreign economic activity creation of public goods
Direct and indirect impact of the state on the economy Direct regulation Includes mainly administrative methods (laws, government orders, development of the public sector in the economy) Indirect regulation Uses methods of monetary and fiscal policy
Taxes Functions of taxes: fiscal (generating the revenue side of the budget) regulatory (stimulating or restraining the pace of production) distribution (distribution of production results between various spheres and groups of the population) Mandatory payments levied by the state from individuals and legal entities to state and local budgets.
Taxes Indirect (taxes on the sale of goods and services) Direct (imposed directly on consumers) Income tax Property tax Income tax Customs duty Excise taxes (surcharges) Sales tax
Vocabulary work Direct taxes are payments to the state depending on the size of their income or the value of property. Indirect taxes are payments to the government that are levied only when performing certain actions, for example, when purchasing certain goods. Excise tax is a tax paid on the purchase of certain goods, which is established as a percentage of the price of the goods. Fees are payments for the right to provide or use certain services.
TAXES Ensure the distribution and redistribution of national income in accordance with social and economic objectives. Federal REGIONAL (taxes of constituent entities of the Russian Federation) Local TAXES THERE IS A PAYMENT FOR A CIVILIZED LIFE
Homework: Paragraph § 14, learn concepts, answer questions.
Social studies lesson in 8th grade.
Lesson topic: The role of the state in the economy
The purpose of the lesson: to form students’ understanding of the role of the state in the economy
Get acquainted with economic problems regulated by any state, consider the ways in which the state influences the economy.
Promote the development of students' economic culture and literacy;
To promote interest in economics as a science and show the need and importance of paying taxes as one of the responsibilities of citizens of the country.
Combined lesson type.
Equipment:
« Social science". 8th grade: textbook. for general education institutions / L. N. Bogolyubov [etc.]; edited by L. N. Bogolyubova, L. F. Ivanova; Ross. acad. Sciences, Ross. acad. education, publishing house "Enlightenment". - M.: Education, 2014;
Multimedia presentation,
Tests on the topic “Entrepreneurship”
Constitution of the Russian Federation.
Handout additional material (text “Incredible taxes”,“The Tale of How Lev Petrovich Didn’t Pay Taxes”),
Lesson Plan
Organizing time
Checking homework
Learning new material
Summarizing. Reflection
Homework.
Organizational moment (1 min)
Greeting, checking students' readiness for the lesson.
“Consider unhappy that day and that hour in which you did not learn anything new and did not add anything to your education.” Jan Amos Kamensky
A lesson is 2400 seconds, let each one be useful!
Homework check (10)
1.Work with tests according to option (Mutual verification) – 6-7 minutes.
Goal setting (3min)
Guys, what area of public life did the test questions relate to?
What other spheres of public life exist? What is the peculiarity of their existence in society?
What is the main institution of the political sphere?
Consequently, the state cannot be isolated from economic life.
You know that economic life (system) can be organized in different ways. What does this depend on?
The economic system is formed based on how society answers the main questions of economics.
Conclusions:
Traditional system: here the state does not interfere in economic relations.
Command system: the government has complete control over the economy.
Market system: Who answers the main questions here? (The market itself)
Does this mean that in countries with market economies the state does not interfere in the economy?
Based on the information presented, try to formulate what will be discussed in today's lesson? What is its theme? (Children's guess)
Subject.The role of the state in the economy.
Plan for learning new material.
Why does the economy need a state?
Tax system.
III . Learning new material (22min)
1. Why does the economy need a state?
Preparing for the lesson, I picked up 2 epigraphs, but couldn’t decide which one would be better suited
Epigraph:
Aristotle “The purpose of the state is joint advancement towards a high quality of life.”
Adam Smith “Great nations are never made poor by the extravagance and imprudence of private persons, but they are often made poor by the extravagance and imprudence of public authorities.”
In the meantime, tell me, which of them is in favor of the state interfering as little as possible in the economy?
And I would like to know the statement which philosopher you support.
1.Working with the textbook.
Lookaccording to the textbook on p. 193 functions of government according to A. Smith
1) ensuring national defense;
2) administration of justice;
3) organization of public works that are unprofitable for private enterprise, but necessary for citizens;
4) collection of taxes to pay for the needs of the state.
Do you think those functions of government that were defined by A. Smith in the 18th century are still relevant today?
Until the 19th century, the state almost did not interfere in economic processes.
? (Working with the textbook on page 194, paragraph 3)
Formation of monopolies, environmental disaster.
These and other reasons have led to the fact that today the state in countries with a market economy performs many more functions than A. Smith called.
2.Working with the Constitution
What functions does the state perform in modern times?
How to protect society from dishonest entrepreneurs and monopolists?
1.Legislative regulation: Article 34 of the Constitution of the Russian Federation
Protecting property rights, supporting competition, ensuring the right to work
Law of the Russian Federation dated 02/07/1992 N 2300-1 (as amended on 07/13/2015) “On the protection of consumer rights”
By protecting entrepreneurship, the state realizes that it only helps 10-30% of the population. But the remaining, most significant part of the population—employees, old people, low-income people, children, the unemployed—need state help. They must be protected first.
2. Implementation of social policy: Article 39 of the Constitution RF
pensions, unemployment benefits
Let us turn to Articles 41 and 43 of the Constitution of the Russian Federation
(medical care, education free)
Why should these institutions of society belong to the state?
These institutions and industries cannot be transferred into private hands, because The main goal of entrepreneurs is to make a profit. They can use school education to their advantage, make it paid and inaccessible to all students.
They can disband the army, because it must be maintained, thereby leaving no one to defend the borders of the state.
3.Providing public goods : defense, healthcare, education
What are public goods? (page 195 of the textbook)
Today the economic situation in the country is quite difficult. (Economic crisis)
3.Work with additional sources
What consequences of the economic crisis are we, ordinary citizens, experiencing?
(Inflation, Price increases, job problems)
Student messages
I asked you to look on the Internet at the inflation rate in the Russian Federation over the past 5 years.
12,91
2014
11,36
2013
6,45
2012
6,58
2011
6,10
Since what year did the economy begin to deteriorate sharply?
The state of the economy began to deteriorate sharply already in 2014, and was caused mainly by sanctions from Western countries and America.
The crisis in Russia in 2014 and 2015 was provoked by a sharp decline in prices for energy resources supplied to European countries.
Who will make decisions to overcome “failures” in a market economy?
(state)
4. Stabilization of the economy
(overcoming inflation, ensuring employment of people)
So, what functions does a modern state perform?
Napoleon Bonaparte said: “A people who do not want to feed their army will soon be forced to feed someone else’s.” What economic function of the state does this phrase correspond to?
Now let's get back to the epigraphs.
Which philosopher's statement do you prefer?
Conclusion: the state is necessary for the economy, because it performs important functions: fights economic crises, inflation, unemployment, supports the country’s defense capability, etc..
PHYSMINUTE
The teacher reads out a statement on yes - hands up, no - half squat
Needs are the need for something (yes)
Needs are only material (no)
Reading books is a biological need...(no)
Sea water is free goods (yeah)
Machines and equipment are economic goods (yes)
The property of the Armed Forces is private property (no)
The higher the price, the lower the demand (yeah)
The higher the price, the lower the supply (no)
Land is a factor of production (yes)
This is the only factor (no)
( Students' idea of knowledge of the topic is being destroyed.) It is clear to us that the state pursues good goals (let's return to the words of Aristotle). But why, if in each country the state performs similar functions, then the standard of living in the countries is different?
UN statistics data. (Student messages)
Norway
Switzerland
Canada
Sweden
New Zealand
So, according to the compiled rating, in terms of living standards in 2016, Russia is in 90th place among 142 countries in the world, between Guatemala and Laos. Norway is in first place in the world ranking of living standards, Chad is in last place.
Important mechanisms of government regulation are taxation and the state budget;
2. Tax system.
1.Independent work according to the textbook, paragraph 23, paragraph 2, p. 195
Find out what taxes are and what types of taxes exist? While reading, fill out the diagram
So what are taxes?
“Taxes are mandatory payments levied by the state (central and local authorities) from individuals and legal entities to state and local budgets.”
Let's check the diagram.
Situations: (to the table). (Work in pairs)
Mom's income tax was deducted from her salary. (straight)
My grandmother paid tax when she sold her house in the village. (indirect)
The Adidas company paid customs duties when importing its goods for sale in the Russian Federation. (indirect)
Dad paid the tax on the vehicle yesterday. (direct)
My uncle is an entrepreneur, he pays taxes to the state. (straight)
Upon sale, alcoholic beverages are subject to additional tax (indirect)
Conclusion: taxation is an important mechanism of state regulation of the economy.
2.Work with additional sources
A) Reading the text “The Tale of How Lev Petrovich Didn’t Pay Taxes”
Give reasons for the fact that taxes must be paid.
So, taxes collected by the state go to defense, education, medicine, pensions, benefits, science, and environmental protection.
B) Working with the text “The Most Incredible Taxes” (p. 56 of the workbook)
How can you title the text?
Using the example of dog taxes, explain how the introduction of a tax can affect people's behavior?
The tax on childlessness, introduced in the USSR in 1941, was perceived by our fathers and grandfathers as something ordinary, although it was the only such case in the world, which also belongs to the category of strange and curious. Those who were unmarried and had no children were required to pay a tax of 6%. It was paid by childless men from 20 to 50 years old and childless married women from 20 to 45 years old. This tax existed from 1941 until the early 90s; it was used to pay benefits for mothers with many children.
We will get acquainted with the following mechanism of state regulation of the economy by the state budget in the next lesson
IV .Summarizing. (5 minutes)
A. Are the judgments about the role of the state in the economy correct?
A. The role of the state in the modern economy comes down to maintaining law and order.
B. The role of the state in the economy is compensation for losses to bankrupt entrepreneurs.
1. Only A is correct
2. Only B is correct
3. Both judgments are correct
4. Both judgments are wrong.
Q 1. Which of the following taxes are direct?
Excise tax
customs duty
Income tax
Tax on sales of goods
Property tax
Grading. Reflection
I worked in classThrough my work in class I
The lesson seemed to me
For the lesson I
My mood
I had the lesson material
Active/passive
Satisfied/dissatisfied
Short/long
Not tired/tired
It got better/it got worse
Understandable/not clear
Useful/useless
Interesting/boring
V
. Homework: (2min)
For all students: paragraph 23 pp. 193-197, v. 1, 4, 5. Find out from your parents what taxes your family pays. What types of taxes are they?
Individually: Task 2 “In the classroom and at home” p.200, Additional material from the workbook (p.57)
Literature:
Textbook G.E. Koroleva, T.V. Burmistrova “Economics” Moscow, Ventana-Graf Publishing Center, 2013
Constitution of the Russian Federation
Workbook “Social Studies” 8th grade, O.A. Kotova, T.E. Liskova
Testing and measuring materials. Social studies: 8th grade/Comp. A.V. Pozdeev - M.: VAKO, 2011
http://bs-life.ru/makroekonomika/uroven-zizny2012.html
http://nsportal.ru/shkola/obshchestvoznanie/library/2013/09/15/rol-gosudarstva-v-ekonomik
http://www.openclass.ru/node/446592
Additional Information
So, according to the compiled rating, in terms of living standards in 2016, Russia is in 90th place among 142 countries in the world, between Guatemala and Laos. In terms of economic indicators, Russia is in 95th place, freedom of entrepreneurship - 88th place, in terms of corruption and efficiency of country governance - 99th place, security level in 92nd place, in quality of education in 35th place, and the level of freedom of citizens - in 89th place among the countries of the world. .
Norway is in first place in the world ranking of living standards, Chad is in last place. According to other indicators, Iceland was recognized as the safest country in the world in 2016, Singapore was recognized as the most developed in terms of economic indicators, Denmark was recognized as the best country for doing business, Australia was recognized as having the best level of education, and people in Canada feel most free in 2016 .
In order to reduce its costs and make a profit, any manufacturer will strive to save on something. The most obvious way for a manufacturer to save money is to save on the environment. Most often, it happens that manufacturers do not think about how exactly their enterprise can harm the environment in the future, because the main thing is to make a profit today.
For example, an entrepreneur built a pulp and paper mill near Lake Baikal. And he doesn’t think about what will happen to the lake later, he wants to make a profit. The fate of the lake worries only a certain group of environmental scientists and young people who seek to protect the surrounding world from globalization and the global dominance of companies. But large manufacturers do not take them seriously; they believe that money is paramount in relation to the environment. Based on this, the threat of environmental disaster is becoming more and more real.
What type of system characterizes the text? “...In order to close any loophole through which products could escape state control, in March 1933. In the USSR, a decree was issued according to which, until the region fulfilled the grain procurement plan, 90% of the threshed grain was given to the state, and the remaining 10% was distributed among collective farmers as an advance for work.”
What type of system characterizes the text? “...In October 1922 Our country adopted a new Land Code, according to which peasants received the right... to choose forms of land use. Strict centralization... was abolished. The factories independently resolved issues of procuring raw materials and selling finished products.”
Functions of the state Control over the use of natural resources, environmental protection. Helping the poor, solving social problems. Protecting the interests of consumers and entrepreneurs. Property protection. Creation of laws on economic issues. Regulation of the money supply in the country. Preventing economic crises.
Homework Read § 14. Learn: traditional system, market system, command system, taxes, direct taxes, indirect taxes, social policy. In the Workbook: page, 4.
NOU VPO "RUSSIAN NEW UNIVERSITY"
(NOU VPO "RosNOU")
Course work
Student(s)__3__year of _______________________faculty
Forms of training
______________________________________________________
(Full Name)
____________________________________________________________
Subject:_____________________________________________________________
________________________________________________________________
Supervisor:__________________________________________________
(academic degree, academic title)
_________________________________________________________________
(Full Name)
Defended Score
" "_________________200 ________________________
Lyubertsy 2010
Introduction
Chapter 1. The role of the state in the economy
1.1. Reasons for the existence of monopolies
2.2. Natural monopolies
2.3.Legal barriers: patents and licenses
2.4.Ownership of the most important types of raw materials
2.5.Unfair competition
3. The essence of monopoly. Its forms, types and types
4.Damage caused by monopolies and the need for government
regulation
5.Government intervention in the activities of monopolies in the conditions
market economy
11. Imperfection of legislation related to overcoming the excessive power of monopolies and monopolism
12. System of state regulation of natural monopolies in Russia. The problem of becoming.
Conclusion
List of used literature 37
Introduction
The problems of monopolization of economic life and competition in commodity markets today attract the close attention of not only specialists, but also the general public.
Since the beginning of the 90s, these problems have become acute for Ukraine: without taking firm and consistent measures against monopolism, one cannot hope for the success of economic reform and the transition to a market economy. The success of economic transformations to a large extent depends on a balanced, verified system of state regulation of monopoly processes and competitive relations. In our country, whose industry inherited a whole complex of monopolistic giants from the command-administrative system of the former USSR, the problem of demonopolizing the economy and preventing the strengthening of the role of monopolies already operating in the market is becoming especially important.
In Ukraine, the process of creating state control to prevent unfair competition actually began from scratch, since the command-administrative system that was present in economic management until recently inherently excluded the presence of free competition in economic activity.
Therefore, at this stage, the creation and improvement of the legislative framework regarding the regulation of monopolistic processes and competition, understanding by the population of Ukraine
the need for economic reforms in this area.
1. The role of the state in the economy
The problem of the relationship between the state and economic entities
is one of the most complex in economics. The state fulfills
the most important functions in the economic system. Objective economic
prerequisites strengthen the role of the state in regulating public
production.
The role of the state in the so-called
turning points, transition periods. Therefore, an exceptional role in the formation
instruments of government intervention and regulation played
world economic crisis of 1929-1933. It led to the fact that the volume
production in the main countries fell by half, international trade froze.
Therefore, states were forced to take on broad economic
functions in the fight against crises. It turned out that the market mechanism is objectively
must be supplemented by government regulation measures.
One of the important types of government regulation is
regulation of monopolies.
2. Reasons for the existence of monopolies
The absence of competitors, which characterizes a pure monopoly,
largely explainable in terms of barriers to entry
industry, that is, considerations that prevent additional firms from entering
2.2. Natural monopolies
Across several industries, economies of scale
production, especially pronounced and at the same time competition
impracticable, difficult or simply inapplicable. Such industries
are called natural monopolies, and most of the so-called
public utilities - electric and gas companies,
bus companies, cable television, water supply and communications companies
Can be classified this way. These industries usually
exclusive privileges are granted by the state. But in exchange for this
exclusive right to supply electricity, water or bus services
in a given geographical area the government reserves the right
regulate the activities of such monopolies to prevent abuse
the monopoly power it provided.
Let's look at a few examples. It would be extremely
It is wasteful for society to have several companies supplying water or
electricity. The technology in these industries is such that large
fixed costs for generators, pumping and cleaning equipment,
water pipelines and high-voltage transmission lines. This problem is exacerbated by
that capital equipment must be suitable to satisfy
peak loads that occur on hot summer days when watering
lawns and air conditioners. These large fixed costs
mean that production costs per unit of output decrease with
number of cubic feet of water or kilowatt-hours of electricity,
supplied by each company. Presence of several water suppliers and
electricity would divide the entire market and reduce everyone's sales
competitor. Each firm would be pushed above its declining average curve
costs Firms would begin to use less of their permanent
equipment, resulting in unit costs and,
therefore, electricity and water tariffs would be unreasonably high.
In addition, competition could be extremely difficult.
For example, the presence of half a dozen telephone companies in a city might
entail the inconvenience of having six telephones and six telephone books,
not to mention six telephone bills to ensure communication with everyone
other permanent residents of the same city.
Natural monopolies have low marginal costs and, following
rule MR=MC, they consider it profitable to expand production. As a result
life-or-death price competition tends to break out,
when there are a number of firms in these public service industries.
The consequence may be losses, bankruptcy of weaker rivals and
possible merger of survivors. A developing pure monopoly can
strive to compensate for past losses and fully benefit from
its new position of market dominance by charging exorbitant prices for
your goods and services.
To rid society of such unpleasant results, the government
will usually give the exclusive privilege to one firm to supply
water, natural gas, electricity, telephone services or carry out
bus transportation. In exchange, the government retains the right
determine the geographical scope of the monopolist’s activities, regulate
the quality of his services and control the prices he can charge.
The result is a regulated or government-organized
monopoly designed to achieve low costs
unit production, but regulated in order to
ensure that consumers benefit from these savings in
costs.
2.5.Unfair competition
The firm's rivals may be eliminated and new competitors enter
blocked through aggressive, cruel actions. Familiar
techniques include vilification of the product, pressure on resource suppliers and
banks to refuse materials and credit, luring away the presenter
personnel, sharp price reductions designed to lead to bankruptcy
competitors. Although many of these aspects of unfair competition are now
are illegal or bordering on illegality, they represent more
than historical interest. For example, although federal legislation
prohibits price reductions aimed at reducing competition as far as possible
in practice, distinguish between legitimate price competition,
Attitudes towards government intervention in the market economy were different at different stages of its formation and development. During the formation of market relations in the XVII-XVIII centuries. the prevailing economic doctrine of mercantilism was based on the recognition of the absolute need for state regulation for the development of trade and industry in the country. Mercantelists argued that the main indicator of a country's wealth is the amount of gold. In this regard, they called for encouraging exports and curbing imports.
The next stage in the development of ideas about the role of the state was the work of A. Smith, “An Inquiry into the Nature and Causes of the Wealth of Nations,” in which he argued that the “free play of market forces” (“laissez faire” principle) creates a harmonious structure. According to the classical approach, the state must ensure the safety of human life and property, resolve disputes, in other words, do what the individual is either unable to do on his own or does it ineffectively. In his description of the market economy system, Adam Smith argued that it is the entrepreneur’s desire to achieve his private interests that is the main driving force of economic development, ultimately increasing the well-being of both himself and society as a whole.
The main thing was that basic economic freedoms should be guaranteed for all economic entities, namely freedom to choose the sphere of activity, freedom of competition and freedom of trade.
In the 30s of our century, after a deep recession in the US economy, John Keynes put forward his theory, in which he refuted the views of the classics on the role of the state. Keynes's theory can be called "crisis" because he views the economy in a state of depression. According to his theory, the state should actively intervene in the economy due to the lack of mechanisms in the free market that would truly ensure the economy’s recovery from the crisis. Keynes believed that the state should influence the market in order to increase demand, since the cause of capitalist crises is the overproduction of goods. He offered several tools. This is a flexible monetary policy, a new fiscal policy, etc. A flexible monetary policy allows one to step over one of the most serious barriers - wage inelasticity. This is achieved, Keynes believed, by changing the amount of money in circulation. As the money supply increases, real wages will decrease, which will stimulate investment demand and employment growth. With the help of fiscal policy, Keynes recommended that the state increase tax rates and use these funds to finance unprofitable enterprises. This will not only reduce unemployment, but also relieve social tension.
The main features of the Keynesian regulatory model are:
a high share of national income redistributed through the state budget;
creation of an extensive zone of state entrepreneurship based on the formation of state and mixed enterprises;
widespread use of fiscal and credit-financial regulators to stabilize the economic environment, smooth out cyclical fluctuations, maintain high growth rates and high levels of employment.
The model of government regulation proposed by Keynes helped to weaken cyclical fluctuations for more than two post-war decades. However, from about the beginning of the 70s. a discrepancy began to appear between the possibilities of state regulation and objective economic conditions. The Keynesian model could only be sustainable in conditions of high growth rates. High growth rates of national income created the possibility of redistribution without compromising capital accumulation. However, in the 70s, reproduction conditions deteriorated sharply. Phillips' law was disproven, according to which unemployment and inflation cannot rise simultaneously. Keynesian ways out of the crisis only unwinded the inflationary spiral. Under the influence of this crisis, a radical restructuring of the state regulation system took place and a new, neo-conservative model of regulation emerged.
The theoretical basis of the neoconservative model was the concepts of the neoclassical direction of economic thought. The transformation of the model of state regulation consisted of abandoning the influence on reproduction through demand, and instead the use of indirect measures to influence supply. Proponents of supply-side economics believe it is necessary to recreate the classical mechanism of accumulation and restore freedom of private enterprise. Economic growth is considered as a function of capital accumulation, which is carried out from two sources: from own funds, i.e. capitalization of part of the profit, and from borrowed funds (loans). Therefore, in accordance with this theory, the state must provide conditions for the process of capital accumulation and increasing production productivity.
The main obstacles on this path are high taxes and inflation. High taxes limit the growth of capital investment, and inflation makes credit more expensive and thereby makes it difficult to use borrowed funds for savings. Therefore, the neoconservatives proposed the implementation of anti-inflationary measures based on the recommendations of monetarists and the provision of tax benefits to entrepreneurs.
Reducing tax rates will reduce state budget revenues and increase its deficit, which will complicate the fight against inflation. Therefore, the next step will be to reduce government spending, stop using the budget to maintain demand and implement large-scale social programs. This also includes the policy of privatization of state property.
The next set of measures is the implementation of deregulation policies. This means the elimination of price and wage regulations, liberalization (softening) of antitrust laws, deregulation of the labor market, etc.
Thus, in the neoconservative model, the state can only indirectly influence the economy. The main role in the implementation of the country's economic development is given to market forces.
The market mechanism itself gives rise to a number of problems requiring government intervention. These include the problem of fair distribution of income. For the market, the most characteristic distribution is that corresponding to investments in production factors. The disabled, sick, and other disabled citizens remain outside of this distribution. The state must ensure the right to work for those who can and want to work. A market economy is inevitably associated with unemployment.
State regulation of economic processes is determined both by the objective need to ensure public control over the development of socio-economic processes and by the position of the state as the bearer of legislative and administrative power.
The priority of state power is associated with the special position and specific functions of the state, which allow it to quickly intervene in the course of the economic process. The financial and economic power of the state should also be taken into account. The solution to these problems is carried out by the state performing certain functions: legal, reproductive-technological, prognostic, regulatory, and ensuring the current needs of the population.
The legal function of the state is associated with the legislative registration of the status of the subject of industrial relations, the establishment of business norms and rules, and the formation of an organizational management structure.
The reproductive-technological function determines the normal course of the reproductive process.
The forecasting function determines priority guidelines for economic development, which are developed on the basis of forecasting economic development, identifying trends and directions of structural restructuring, forming a market management mechanism, ensuring employment of the population and regulating unemployment.
The regulatory role of the state - the state uses direct and indirect methods, forms infrastructure, and maintains the balance of social production.
Regulation methods. They can be divided into direct and indirect. Direct ones are based on administrative measures of influence. Indirect, can be administrative, but more often economic in nature - antimonopoly policy, pricing, tax system, tax inspection and government procurement system.
