- Consider the role of the state in the country's economy
- Get to know the tax system
Analyze the types of resources using the table.
Hired employee
Entrepreneurial skills
Electric locomotive driver
Making decisions
mountain river
- 1. Functions of the state.
- 2. Why does the economy need a state?
- 3.Why do we pay taxes?
- 4.State budget
Functions of the state
What economic functions of the state exist according to A. Smith?
Page 132 (1 paragraph) textbook
- economic stabilization
- protection of property rights
- regulation of monetary circulation
- income redistribution
- regulation of relations between employers and hired workers
- control over foreign economic activity
- creation of public goods
Direct and indirect impact of the state on the economy
Direct
regulation
Includes predominantly administrative methods (laws, government orders, development of the public sector in the economy)
Indirect
regulation
Uses monetary and fiscal policy methods
Mandatory payments levied by the state from individuals and legal entities to state and local budgets.
Functions of taxes:
- fiscal (the revenue part of the budget is formed)
- regulatory (stimulating or restraining production rates)
- distributive (distribution of production results between various spheres and population groups)
- Taxes
Direct (imposed directly on consumers)
Indirect (taxes on the sale of goods and services)
Income tax
Customs duty
Excise taxes (surcharges)
Property tax
Income tax
Sales tax
Vocabulary work
Direct taxes - These are payments to the state depending on the size of their income or the value of their property. Indirect taxes - These are payments in favor of the state, levied only when performing certain actions, for example, when purchasing certain goods.
Excise tax is a tax paid upon the purchase of certain goods, which is established as a percentage of the price of the goods.
Fees- These are payments for the right to provide or use certain services.
TAXES
Provide distribution and
redistribution of national income in accordance with social and economic objectives.
REGIONAL
(taxes of the constituent entities of the Russian Federation)
Federal
Homework:
Paragraph § 17, learn the concepts, write out the definition of the state budget, list the income and expenses of the state.
Main types of economic systems Lines of comparison Traditional Centralized (command) Market What to produce? Products of agriculture, hunting, fishing. Few products and services are produced. What to produce is determined by customs and traditions, which change slowly. Determined by groups of professionals: engineers, economists, computer specialists, industry representatives - “planners.” Determined by consumers themselves. Producers produce what consumers want, i.e. something that can be purchased How to produce? They produce the way and what their ancestors produced. It is determined by the state plan. It is determined by the producers themselves.
Main types of economic systems Lines of comparison Traditional Centralized (command) Market For whom? Most people live on the edge of survival. The additional product goes to the leaders or land owners, the rest is distributed according to customs and traditions “Planners”, directed by political leaders, determine who and how much will receive goods and services Consumers get as much as they want, producers - profit - excess income from sales T and U over the costs of their production Definition E.S. with a natural form of economic management, in which the production of material goods and services is carried out to satisfy the producer’s own needs, and decisions about the production, distribution and consumption of eq. benefits are accepted on the basis of customs and traditions of E.S., in which e.g. the activities of all subjects are strictly regulated from a single eq. center in accordance with the state E.S. plan, in which decisions on production, distribution and consumption are made by independent e.c. subjects based on freedom of choice
A. “...In order to close any loophole through which products could escape state control, in March 1933 the USSR issued a decree according to which, until the region fulfilled the grain procurement plan, 90% of the threshed grain was given to to the state, and the remaining 10% was distributed among collective farmers as an advance for work. The opening of collective farm markets... depended on whether the collective farms of the region were able to fulfill the plan... The authorities announced the establishment of exceptionally high monetary taxes on private peasants...”
B. “In October 1922, our country adopted a new Land Code, according to which peasants received the right to freely leave the rural community and choose forms of land use. Strict centralization in the supply of industrial enterprises with raw materials and in the distribution of finished products was abolished. The factories independently resolved issues of procuring raw materials and selling finished products.”
V. “The end of the 20s is noteworthy in Russian history, when in June 1918 a decree was issued on the nationalization of large industry, and in November 1920 of small industry. According to the decree of January 11, 1919, all surplus grain was confiscated from the peasants. Non-monetary payments prevailed everywhere. Payment for labor was made in food and basic necessities. In 1919, free meals were introduced for children, and then for industrial and transport workers.”
Functions of the state: 1) Collection and dissemination of reliable economic information. 2) Control over the use of natural resources, environmental protection. 3) Helps the poor, solves social problems. 4) Protects the interests of consumers, controls the quality of goods and services. 5) Protects the property of citizens and companies. 6) Protects the mechanism of competition, prevents monopolism, preserves the market. 7) Supports public institutions. 8) Formation of legislation on economic issues, judicial protection of citizens and firms. 9) Regulates the country's monetary economy. 10) Prevention of economic crises.
TAXES (by territorial level) FEDERAL personal income tax – tax on personal income; corporate income tax; VAT – value added tax; excise taxes; mineral extraction tax; water tax; fees for the use of fauna and aquatic biological resources; state duty REGIONAL LOCAL property tax of organizations; gambling tax; transport tax land tax; personal property tax
TYPES OF TAXATION Progressive - a system in which there is a flexible scale of tax rates: a higher percentage tax rate is taken from a higher income, and a lower percentage from a lower one (helps to equalize the difference in income between rich and poor); Regressive is a system that is the opposite of progressive (with more income, a lower percentage tax rate, and vice versa); Proportional - regardless of the amount of income, the same tax is charged to all persons (in Russia 13%)
The role of the state in the economy
The government, making laws and imposing taxes, is like a doctor who must choose the least evil when treating. I. Bentham (1748-1832). English philosopher, sociologist, lawyer
The evolution of ideas about the role of the state in the economy 1 Mercantilists. Mercantilists 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 main idea of the mercatilists was the development of trade and the reduction of the role of the production sector.
Classical theory. A. Smith, in “An Inquiry into the Nature and Causes of the Wealth of Nations,” argued that “the free play of market forces” (the “laissez faire” principle) creates a harmonious structure.” A. Smith argued that the entrepreneur’s desire to achieve his private interests is the main driving force of economic development, ultimately increasing the well-being of both himself and society as a whole. The state must guarantee the basic economic freedoms of a person: freedom to choose the field of activity, freedom of competition and freedom of trade.
Political economy Political economy Karl Marx (1818-1883) Not a single modern textbook on the history of economic thought excludes from it the teachings of Marx, who is considered the completion of the classical school of political economy, whose representatives were the English economists A. Smith (1723-1790) and D. Ricardo ( 1772-1823). Marx wrote: “The final cause of all real crises always remains poverty and limited consumption of the masses, counteracting the desire of capitalist production to develop the productive forces, in such a way as if the limit of their development was only the absolute consumption capacity of society.” This recipe was adopted not only by J. Keynes, F. Roosevelt, L. Erhard, but also by a huge mass of capitalists and entrepreneurs themselves. It is no coincidence that the words of Henry Ford are so famous and often quoted: “I must pay the workers as much as necessary so that they can buy the car they make.”
Keynesian theory The main features of the Keynesian model of government regulation 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. Western governments, under the influence of the Keynesians, realized their social functions of creating and maintaining social peace, and the sustainability of a “shared prosperity” society. The essence of the “welfare state,” “capitalism for the many,” is the recognition that there are areas of human activity in which market mechanisms completely fail. John Maynard Keynes (1883-1946)
Neoclassical theory. Proponents of supply-side economics believe it is necessary to recreate the classical mechanism of accumulation and restore freedom of private enterprise. Economic growth comes from two sources: from own funds, i.e. capitalization of part of the profit and through borrowed funds (loans).
Neoclassical theory The already classical theory of the information society by D. Bell states that the traditional elements of the capitalist model of the past - Labor, Capital, Land - with the development of human society and information technology lose their significance. Knowledge becomes the most important source of surplus value, capital accumulation and economic development
Neoclassical theory 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 again assigned to market forces.
Neoclassical theory From the point of view of the economic mechanism of capitalist production, this means that the more significant the intellectual investment in production, the more know-how and scientific developments were used to create the product, the higher its cost, the more efficient the production and the more competitive the goods produced. Efforts are needed to improve the quality of human life and targeted investments in the development of science, healthcare, and education.
Disadvantages of the market and ways to overcome them Cases of market failure 1. Production of public goods Public goods are goods and services that have the following properties: a) persons who refuse to pay for them cannot be excluded from the number of users; b) the use of these benefits by one person does not reduce the possibility of their simultaneous use by other persons.
In a mixed economy, the state takes care of creating public goods. In a mixed economy, the state takes care of creating public goods.
Public Goods A classic example of a public good is a lighthouse, which is used to warn passing ships about dangerous areas. The lighthouse has all the properties of a public good: a) those who refuse to pay for the services of the lighthouse cannot be prohibited from using it, b) the emergence of a new user (a fishing boat or a passenger ship) will not in any way affect the possibility of using the lighthouse by other ships. Other examples of public goods are national defense, street lighting, traffic lights, City Day fireworks, etc.
Cases of market failure 2. Accounting for externalities Externalities are costs or benefits arising from the production or consumption of a good by third parties who are neither sellers (producers) nor buyers (consumers) of this good. Externalities can be either positive (if third parties receive benefits) or negative (if third parties incur costs). An example of a positive external effect is the benefits that citizens receive from land reclamation work carried out by agricultural enterprises. By preparing the land for crop areas, agricultural enterprises drain the swamps. As a result, the number of mosquitoes that plague local residents is reduced. And now they don’t have to spend money on mosquito nets, insect repellents, etc. Obviously, in a certain sense, their living conditions are improving.
In a mixed economy, the state takes on external effects by paying subsidies to entrepreneurs whose activities lead to positive external effects or which itself undertakes the production of such goods. In the event of negative external effects, the state introduces restrictions on harmful emissions, requires the installation of treatment facilities, and applies penalties. In a mixed economy, the state takes on external effects by paying subsidies to entrepreneurs whose activities lead to positive external effects or which itself undertakes the production of such goods. In the event of negative external effects, the state introduces restrictions on harmful emissions, requires the installation of treatment facilities, and applies penalties.
Cases of market failure 3. A significant degree of unevenness in the distribution of income The market mechanism assumes that income is received only by those who, owning resources, provide them for use in production. However, not all members of society can have such resources, and therefore have income from their use (frail old people, disabled people and some other categories of citizens). . In a mixed economy, the function of redistributing income in society is assumed by the state.
4. Weakening of competition and the emergence of monopolies 4. Weakening of competition and the emergence of monopolies The mechanism of competition is similar to the mechanism of natural selection and can lead to a situation where one company achieves the ruin of all its competitors and creates insurmountable barriers to the entry of new competitors into the market.
In a mixed economy, the state makes efforts to regulate the activities of monopolies. In a number of industries, the creation of monopolies is prohibited by law, but in the case of natural monopolies, the state exercises control over the prices they set and the production volumes of their products. In a mixed economy, the state makes efforts to regulate the activities of monopolies. In a number of industries, the creation of monopolies is prohibited by law, but in the case of natural monopolies, the state exercises control over the prices they set and the production volumes of their products.
5. Unstable (cyclical) development of a market economy 5. Unstable (cyclical) development of a market economy A market economy is characterized by such manifestations of instability as crises, inflation, unemployment, which lead to serious negative consequences from the point of view of society
There are other examples where a market economy uses resources inefficiently from the point of view of society. In particular: There are other examples where a market economy uses resources inefficiently from the point of view of society. In particular: a) private business is not interested in investing its own funds in fundamental research, since it does not provide a guarantee of return in the short term; b) private capital does not go into industries that currently do not promise large profits, but are vital for the country’s economy; c) private business does not care about the fate of the population of the territories, industries whose specializations have declined. All of these cases of market failure require government intervention in the economy to protect public interests.
Economic functions of the state From a macroeconomic point of view, the state influences the economy in three ways: through its legislative, executive and judicial bodies: 1. establishes laws, norms, rules, 2. introduces prohibitions, restrictions, permits, exceptions to the rules, 3. resolves emerging disputes, 4 imposes penalties, etc.;
part of the income and resources withdrawn from some economic entities with the help of taxes and loans, the state, in accordance with selected criteria, transfers to other economic entities, i.e., thereby the state redistributes income and resources; part of the income and resources withdrawn from some economic entities with the help of taxes and loans, the state, in accordance with selected criteria, transfers to other economic entities, i.e., thereby the state redistributes income and resources; The state uses part of the income and resources withdrawn from the private sector for its maintenance and production of public goods. For example: ensuring the defense of the country, conducting foreign policy, maintaining internal order, maintaining the judicial system, etc., thereby carrying out government consumption.
main economic functions of the state: creating a legal environment for the effective functioning of the market, determining the “rules of the game” and monitoring their compliance; production of public goods and compensation of externalities; supporting a competitive environment, monitoring the actions of monopolies in the market; ensuring the stability of the country's economic development, combating inflation and unemployment; smoothing out unevenness in income distribution, fighting poverty.
THIS MUST BE REMEMBERED State and legal intervention in the market economy is caused by the imperfections of the market economy (generated by both external and internal factors), as well as the need to provide the population with public goods. Among the reasons for state and legal intervention in the economy are: limited natural resources; concern for the sustainability of political power; threat of environmental disaster; threat to public safety due to the use of complex technologies in production.
THIS MUST BE REMEMBERED Socio-economic rights and freedoms are those human capabilities that allow him to ensure a decent level of well-being and satisfy physical, material, spiritual and other needs. In the socio-economic sphere, constitutional rights are divided into two groups: economic and social. Economic rights include: the right to entrepreneurial and other economic activities not prohibited by law; right to private property; private land ownership right
THIS MUST BE REMEMBERED Social rights are: the right to work; right to rest; the right to motherhood and childhood; right to social security; right to housing; the right to health protection and medical care; right to education; the right to a favorable environment.
QUESTIONS FOR CONSIDERATION Make a list of functions or industries that are still controlled by the Government in Kazakhstan. From this list, select one or two industries that could be privatized. How would you privatize them?
The intro for the program “Let Them Talk” plays
The leader enters the class. Greetings.
Teacher's word:Dear friends, today we are present at the “Let Them Talk” program.
Who is missing from our studio??(I mark those who are absent)
Thank you!
We discuss true stories that cannot be kept silent about. So, the topic of our meeting today"The role of the state in the economy" . Please mark the topic in your notebooks.(Student notebooks)
I. Motivation for learning activities
Statement of the lesson problem
“Contrary to the wishes of the people,
Words in the country differ from deeds
They charge two or three prices
Both a democrat and a former leftist"
Consistently to program participantsquestions are asked:
What are these words about?
Who is needed in the market?
What are we going to talk about today?
(Setting the lesson goal)
At our previous meetings, we talked about such important economic phenomena as demand, supply and entrepreneurship. Many economists consider the main concept of economics to be the state. Therefore, the state acts not only as a political, but also as an economic entity.The purpose of our meeting today is to prove or disprove that the state is the main concept of the economy .
So, Some tips:
- Try not to shut your mouth with your thoughts.
- When the discussion takes place in pairsor in fours it is important to hear what your neighbor is saying.
- Be kind to each other.
Form of work: individual and group
II. Updating knowledge
Leading:What is a state?
Guests: answer(A state is a political organization of a country that has its own territory, sovereignty, makes laws, collects taxes and protects its citizens. )
Leading:Well done! The state alsois the main participant in the economic sphere. It strives to maintain economic order to meet our needs. Which ones?
Guests: reply (biological, social, etc.)
III. Learning new material
Leading:The economic policy of the state has its own specific goals. And now we will look at which ones.
Economic goals: (writing in notebooks)
- The economic growth
- Employment regulation
- Maintaining a stable price level
- Export support
The economic goals of the state are: (general, long-term, current) explanation:
- Are common(ensuring economic security and efficiency, taking care of ensuring full employment.)
- Promising(formation of a socially oriented market version of the economy)
- Current(reducing inflation, ensuring stabilization, fighting poverty, reducing business taxes)
Leading:But in order to maintain economic order in the country, what does the state need to create?
Guests:Answers (conditions)
Dear friends, there is a special correspondent of our program in our studio who will introduce you to these conditions. I give the floor to Alexander Krinitsa.
Leading:During Alexander’s speech, your task is to record in your notebooks the conditions that, in your opinion, could preserve economic order in the country.
Guests: answers
Leading: Alexander, right or wrong, in your opinion, did the guests of our studio name the conditions for maintaining economic order in the country? Summarize.
Alexander (speech): the main conditions are:
- Laws;
- Guarantee of priorities of personal interests;
- Limitation of monopoly tendencies in the economy.
Leading:The role of the state in the economy is manifested through the functions of the state. I suggest opening the textbooks to page 116.
Leading:In economics, the state often protects entrepreneurship. But it understands that it only helps 10–30% of the population. But the remaining, most significant part of the population - children, unemployed old people, low-income people, employees - need state help.
Many issues in the economy can only be resolved by the state. What do you think could happen if schools, hospitals, and the police are transferred to private hands—to an entrepreneur?
Guests: answers
Leading:Another main task of the state is to protect the environment.
Dear friends, there are experts in our studio who will introduce you to this problem. I give the floor to ________________________________________________
Several students come to the board and can prove different points of view.
Leading: Which of our experts do you agree (disagree with) and why?
Guests: answers
Leading: So Today I would like to say that there are mechanisms for state regulation of a market economy.
Leading:Basic toolsgovernment regulation is: direct and indirect interventioninto the processes of a market economy. Diagram on slide. (explanation)
The class is divided into three groups.
Leading: You have handouts on your tables. Your task is to answer the question: How do government regulation mechanisms work, what methods are there for this? use?
1g. Legal regulation
2g. Fiscal policy
3 gr. Monetary policy
Time to complete the work is 5 minutes.
Guests:perform the task.Let's sum it up
IV. Primary comprehension and consolidation of the studied material
Leading:Well done to all of you! All we have to do is conduct an interactive vote on our topic.
I will distribute to each of you forms with expressions on our topic. You need to note which of them is true and which is false.
Once completed, exchange forms with your neighbor and check each other.
You see the correct answers on the screen.
Turn in your forms after the transfer is completed.
And at the very end of our program I would like to celebrate with valuable gifts, today these are ratings for the program “Let Them Talk.”(Grading)
Leading:And let me remind you that at the very beginning of our program we told you thatthe state is the main concept of the economy. I ask you to express your opinion!
Our program is coming to an end, but in order for our next meeting to be as active as possible, I will ask you to complete a small task. Write an essay-reasoning _____________________________________________________
V. Lesson summary. Reflection.
If there are no questions, this is the end of our program. Goodbye! Thanks to all!
