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Welfare is a state of satisfaction of needs, benefits.
The only source of wealth is work aimed at producing goods that are beneficial to people and society.
The basis of welfare
The people are viable and self-sufficient under one condition: they must produce as much food as they consume.
All other goods are created by well-fed people. The less labor goes into the production of food, the higher the possible welfare of the people.
The well-being of the people is determined by:
Productivity of the people.
The real value of the economy is people's work aimed at creating goods. The volume of goods (the Gross Domestic Product), which the people are able to produce by spending all the potential work available, is the productivity of the people's labor. The labor potential of the people is finite. Number of working people × 2000 hours per year. This is the producing limit of the economy of any country. It is impossible to tolerate a loss in the use of labor. Loss of labor leads to a weakening of the generating potential of the economy. The welfare of citizens is decreasing. The standard of living is determined by the amount of GDP divided by the number of citizens. Higher labor productivity is higher than the average standard of living of citizens.
The fairness of the distribution of the social product.
The welfare of the people is conditioned by the way in which the social product is divided into all. If the state, owners and entrepreneurs appropriates a large part of the product, the toilers live in poverty and poverty. The fairness of the distribution of the national product is determined by the form of government, the type of state structure, the customs of the population, the level of development of culture, the aggression of other states.
Labor, which is not taken into account in GDP.
There are many types of labor activity that determine the well-being of the people, but are not taken into account in GDP. Everyone is washed, dressed, laundered, cleaned in a dwelling, prepares food, cares for children ... If this labor is not offered for sale, it is not taken into account in GDP, and therefore in assessing the well-being of the people.
Officials who impose an income tax on workers are interested in the fact that a person does nothing for himself. He concentrated on the production of one service and offered for sale. All the missing bought. In such a state, the volume of GDP is "inflated" by the sphere of services. It seems that society is richer. But this wealth is "statistical." The real wealth of citizens is the same as in a society with a smaller GDP, where each person meets many current needs independently.
In a economy aimed at selling, citizens will be poorer, due to the growth of income tax, despite the large amount of "statistical welfare". This must be understood by everyone, so as not to be a victim of the deception of ideological propaganda of the interventionist states.
The welfare of the people is decreasing:
Labor that does not bring joy.
Imagine a situation: each mother raises another's child for payment, and to take care of her child hires another woman. The amount of labor in society will remain the same. Only GDP statistics will increase, due to mutual payment of labor. Real well-being of people will decrease: to raise their child - the joy and meaning of life, to raise another's child - hard work.
Labor, the benefit of which is not noticeable.
The real welfare of society is due only to the labor that satisfies the needs. Labor, which does not bring satisfaction, increases GDP statistics, but does not lead to increased prosperity. The need to move in space over long distances. Construction of more expensive houses, which are opposed to an earthquake and strong wind, cold. Heating housing. Additional winter clothes. Snow cleaning. Air conditioning in the hot season and the need for additional energy production.
Labor, aimed at survival.
Additional expenditures on armament and military service, to confront hostile states. Additional expenditures of labor and resources on combating criminals. Efforts to eliminate the damage from natural disasters, man-made disasters and accidents.
There is no other man's calamity
All people are one single whole. Any disaster is the misfortune of all mankind. Any loss is the loss of all humanity. If the tanker drowned with oil, it means that human labor was lost, aimed at oil production, for the production of a tanker, for the liquidation of the consequences of the disaster. The entire community of people has become impoverished. How? To compensate for the costs, it is necessary to raise the price of oil. Increase the price of gasoline, and therefore, all goods that are created with its use. Directly or indirectly. Transport accident. People are injured, they lose their ability to work. The transport has deteriorated. Other people spend their labor on eliminating the consequences. To treat injured people. This work does not lead to an increase in well-being. The community is getting poorer. War. Win one to the detriment of others. The damage to the workers is much greater than the gain of the aggressors. War is harmful to all of humanity, in general.
Any disaster leads to one consequence - people become poorer. All. It is necessary and important to understand each person. An alien disaster does not happen.
Any disaster is our misfortune, the misfortune of all mankind.
Factors of people's well-being
- Genotype: resistance to diseases, health of citizens.
- Phenotype: the strength of the intellect of the people.
- Advanced phenotype: the level of knowledge of the people.
- Social care: the quality of education of the people.
- Moral and mental qualities of rulers.
- Industriousness of citizens. The blessings accumulate. Well-being grows.
- The desire of citizens to economy and thrift.
- Friendly and peaceful people.
- The desire of citizens to learn and to work efficiency.
- Ethical public opinion.
- The wealth of the state with natural resources.
- Environmental conditions (climate).
- Degree and frequency of natural disasters.
- Diseases, epidemics.
- Catastrophes (fires, accidents ...).
- Internal confrontation of people for power.
- Aggression of neighboring states. Welfare falls.
- Minimum borrowing from other countries (credit interest).
- Parity exchange of currencies for foreign trade.
- International exchange of goods, without exploitation.
- The degree of optimality of the state mechanism.
- Striving for optimality and efficiency in the long term.
You can make the goods for one year, cheap. If the goods are to be used for one year, then there is no point in making it expensive.
If the product will be used for ten years? Do it cheaply every year, ten times. It takes a lot of work. A lot of stuff. Increased costs from the sale, purchase, replacement of goods and waste disposal.
Long-term rationality: "It is profitable to spend large funds on a single-time basis so that you can operate without incurring costs and inconveniences for a long time." The cost of one-time costs will be higher. But there will be convenience from the exploitation of quality goods. The cost of goods for each year of operation may be lower.
The principle of long-term rationality is one of the methods for increasing the productivity of labor and the standard of living of the people. But this principle people start to use only in stable conditions. When it is possible to extract in the future the expected benefits from additional labor efforts in the present.
On a national scale, long-term rationality is planning for hundreds of years ahead. It is more advantageous to build hills when building a city, than to visit them for thousands of years. It is beneficial to create underground communications of the city, than to excavate the streets for each new gasket. Such interest goes beyond the individual life of the builders. Do you need to work more yourself to make life easier for someone in the future? Selfishness is not capable of this. Motivation is possible only at the level of the Intelligent Spirit that manages people.
Welfare of the worker
For the economy, a person is a "commodity".
For the organization I am a "commodity". She pays me my price. I'm selling to an organization and demand money for it. The more extensive and deeper my knowledge, the more deficient my abilities, the higher the price I can get by selling my work.
For the economy, each person is a "commodity". He sells some of his ability, which has value for the organization.
Man creates his value by education and education, personal conscious, purposeful efforts. To live well, everyone must discover the talent, develop and sell with the maximum benefit for themselves.
Components of remuneration.
The cost of labor can not be the same for all types of labor. Different jobs require different costs for a person. The cost of labor is determined by the following factors:
- Physical efforts.
- Mental efforts.
- Duration of work.
- Tension of work.
- Working conditions: risk to life, harm to health.
- Responsibility: spiritual, material, for the life of people.
- Labor efficiency (useful final result).
A person chooses for himself how hard it is to make a living. Knowing how various types of labor are paid, can consciously prepare themselves for the chosen.
Efficiency of work
The welfare of society depends on the effectiveness of labor - the amount of goods that a nation can produce per unit of time. GDP - for one year.
Managerial efficiency of work.
Depends on the management of production activities of the subjects of relations. The higher the degree of management of people's joint activities, the higher the overall efficiency of labor. Efficiency of the organization. Efficiency of the state.
But, the higher the degree of labor management, the less freedom remains for the creator's creativity. The interest decreases. For maximum efficiency of work, it is necessary to find the best compromise for these two factors. The best way to manage and the best way to stimulate. The final result is important - the maximum efficiency of labor.
Motivational efficiency of work.
Depends on the personal interest in the work activity, from the creative initiative of each performer. The more freedom a person has in choosing an object of labor, independent decision-making, personal interest in the end result - the higher the efficiency of labor (productivity).
Organizational efficiency of work.
The efficiency of labor can be significantly increased due to the rational organization of people's labor. I will explain the principle in an abstract example.
Three people build three houses in two ways:
Option 1: everyone builds his own house himself.
Option 2: all three, build the first house, then the second, then the third.
Suppose a person builds a house in three years, and three people can build a house in 1 year. In the first case, none of the people will be able to use the product of their labor for three years. In the second case, a year later, one person can start using the finished house. Two years later, two people will use the finished goods. And only for the third person the situation will not change. In the figure, the situation is shown graphically. The effect in increasing the satisfaction of needs in the second case: three additional shaded squares - material benefits, ahead of time. The reason is a reduction in the volume of the uncompleted production, which does not satisfy the needs. In the limit, additional benefits account for 50% of forced losses.
More significant, the effect of the organization of labor - with the development of investment resources. In the first variant money is linked for all three years in the amount of the cost of three houses. Bought materials are not useful. In the second variant, a resource is associated with the cost of one house for one year. Hence, it is possible to realize much more investment projects on the money deferred by the people from consumption. Give the work to more people. In this case, the limit of effectiveness is limited by the number of able-bodied people.
This principle is applicable both on the scale of the state and at the level of the individual's budget. The essence of the principle is concentration of efforts.
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