Social policy in a market economy. Cheat sheet: Social policy in a market economy Social policy in a market economy briefly

PLAN.

Introduction
1. History of the evolution of ideas about the role of the state in the economy

• Mercantelists
• Classical theory
• Keynesian theory
• Neoclassical theory

2. Functions of the state in the economy

• antitrust regulation

3. Methods of government influence on the market

• government spending
• taxation
• government regulation
• public entrepreneurship

4. Problems and limitations of government intervention

• deregulation and privatization
• state regulation in agriculture

Conclusion
List of used literature

Introduction.

The problem of government intervention in the economy is, in my opinion, fundamental for any state, regardless of whether it is a market economy or a distribution economy. In a distributive economy, everything is simpler: the state assumes all rights and responsibilities for the production and distribution of goods and services. That is, there is no need to talk about regulation: the state simply has no one to regulate. In this case, we are talking about replacing the entire variety of forms of ownership and ways of answering the question “What, how and for whom to produce?” one single form of ownership - state, and the answer to the basic economic question - strict centralization and distribution.

1. HISTORY OF THE EVOLUTION OF PERSPECTIVES ABOUT THE ROLE OF THE STATE IN THE ECONOMY.

Mercantelists.

The history of government regulation dates back to the end of the Middle Ages. At that time, the main economic school was the mercantelist school. She proclaimed active government intervention in the economy. 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.

Classical theory.

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” (Varga V. Role states in a market economy. MEiMO N11, 1992, p. 131).

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 must be guaranteed for all economic entities, namely freedom to choose the sphere of activity, freedom of competition and freedom of trade.

Keynesian theory.

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.

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.

Neoclassical theory.

The theoretical basis of the neoconservative model was the concepts of the neoclassical direction of economic thought.

The transformation of the state regulation model 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 post is considered as a function of capital accumulation, which is carried out from two sources: at the expense of own funds, i.e. capitalization of part of the profit and through 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.

2. FUNCTIONS OF THE STATE IN THE ECONOMY.

State intervention in the economy pursues certain functions. As a rule, it corrects those “imperfections” that are inherent in the market mechanism and which it itself is either unable to cope with, or this solution is ineffective. The state takes responsibility for creating equal conditions for competition between entrepreneurs, for effective competition, and for limiting the power of monopolies. It also cares about the production of sufficient quantities of public goods and services, since the market mechanism is unable to adequately satisfy the collective needs of people.

The participation of the state in economic life is also dictated by the fact that the market does not ensure a socially fair distribution of income. The state should take care of the disabled, the poor, and the elderly. He also belongs to the sphere of fundamental scientific developments. This is necessary because for entrepreneurs it is very risky, extremely expensive and, as a rule, does not bring quick profits. Since the market does not guarantee the right to work, the state has to regulate the labor market and take measures to reduce unemployment.

In general, the state implements the political and socio-economic principles of a given community of citizens. It actively participates in the formation of macroeconomic market processes.

The role of the state in a market economy is manifested through the following important functions:

1. creation of a legal basis for making economic decisions. The state develops and adopts laws regulating business activities, determines the rights and responsibilities of citizens;
2. economic stabilization. The government uses fiscal and monetary policies to overcome the decline in production, smooth out inflation, reduce unemployment, maintain a stable price level and the national currency;
3. socially oriented distribution of resources.

   The state organizes the production of goods and services that are not handled by the private sector. It creates conditions for the development of agriculture, communications, transport, determines spending on defense and science, forms programs for the development of education, healthcare, etc.;

4. ensuring social protection and social guarantees.

The state guarantees a minimum wage, old-age pensions, disability pensions, unemployment benefits, various types of assistance to the poor, etc.

Antitrust regulation.

Antimonopoly activity of the state is one of the most important areas of government intervention. Regulation is developing in two directions. In those few markets where conditions prevent the efficient functioning of the industry under competition, that is, in the so-called natural monopolies, the state creates public regulatory bodies to control their economic behavior. In most other markets where monopoly has not become a necessity, public control has taken the form of antitrust laws. Next, the features of regulating the activities of natural monopolies will be considered.

A natural monopoly exists when one firm can supply the entire market while enjoying lower unit costs achieved through scale. This is common in public utilities where large-scale operations are necessary to achieve low prices.

To ensure acceptable behavior of such monopolies, two options can be used: state ownership and state regulation.

For natural monopolies, a “fair” income is usually set, that is, a price equal to average gross costs. However, this entails a lack of incentive for the enterprise to reduce costs.

Thus, the purpose of industry regulation is to protect society from the market power of natural monopolies by regulating prices and quality of service. But it is necessary to use direct regulation only where it does not lead to a decrease in production efficiency. Regulation should not be used in cases where competition would provide a better supply of products to society.

Another type of control is antitrust laws.

This form of control has a rich history. In 1890 The famous Sherman Act was passed, prohibiting any type of collusion and any attempt to monopolize any industry. However, this wording was rather vague, which did not allow a clear definition of the crime. The next step was the Clayton Act of 1914. In principle, it was a continuation of the Sherman Act and only clarified some of its points.

That same year, the Federal Trade Commission was created. Her competence included monitoring the implementation of the above laws, as well as investigating dishonest actions on her own initiative. The Federal Trade Commission Act expanded the scope of illegal conduct and provided an independent antitrust agency with investigative powers.

A large number of antimonopoly laws and various clarifications to them prove the extreme importance of these laws for society. Indeed, uncontrolled monopoly power can bring significant losses to society through the use of unfair competition, which will cause bankruptcy of small producers, consumer dissatisfaction with high prices and often poor quality of goods, a lag in scientific and technological progress and many other negative consequences. But, on the other hand, antitrust laws should not punish large manufacturers who do not use illegal methods of competition. If this condition is not met, then entrepreneurs will have significantly reduced incentives to make their enterprise stronger and produce more products.

Thus, the state acts as an arbiter who selects the optimal (and most effective) relationship between monopolies and competitive industries.

In different periods of history for different countries, this ratio was different, adjusted to the peculiarities of economic development, and the state must skillfully and effectively use this mechanism.

3. METHODS OF GOVERNMENT INFLUENCE ON THE MARKET.

The state influences the market mechanism through its spending, taxation, regulation and public entrepreneurship.

They are considered one of the important elements of macroeconomic policy. They influence the distribution of both income and resources. Government expenditure consists of government purchases and transfer payments. Government purchases usually represent the acquisition of public goods (defense costs, construction and maintenance of schools, highways, research centers, etc.). Transfer payments are payments that redistribute tax revenues received from all taxpayers to certain segments of the population in the form of unemployment benefits, disability payments, etc. It should be noted that government purchases contribute to national income and directly use resources, while transfers do not use resources and are not related to production. Government procurement leads to a redistribution of resources from private to public consumption of goods. They enable citizens to use public goods. Transfer payments have another meaning: they change the structure of production of consumer goods. Amounts taken in the form of taxes from some segments of the population are paid to others. However, those to whom the transfers are intended spend this money on other goods, which results in a change in the consumption structure.

Another important instrument of government policy is taxation. Taxes are the main source of budget funds. States with market economies impose different types of taxes. Some of them are visible, such as income taxes, while others are not so obvious, as they are imposed on producers of raw materials and affect households indirectly in the form of higher prices for goods. Taxes cover both households and firms. Significant amounts go to the budget in the form of taxes (for example, in the United States, about 30 percent of the total cost of goods and services produced).

One of the main problems is the fairness of distribution of the tax burden.

1. There are three main systems based on the concept of progressive taxation
2. the ratio of the amount levied as a tax on the income of a particular employee to the amount of this income.
3. proportional tax (the amount of tax is proportional to the employee’s income);
4. regressive tax (in percentage terms, the tax levied is lower, the higher the employee’s income);

It seems to me that a progressive tax is the most fair, but the percentage increase in the tax should not be significant so as not to weaken the incentive to work, and therefore to earn more. As a rule, income tax is based on this principle. However, sales and excise taxes are actually regressive because they are generally passed on to consumers, of whom the same amount takes up a different share of their income.

The task of the state is to collect taxes in such a way as to meet the needs of the budget and at the same time not cause discontent among taxpayers. When tax rates are too high, massive tax evasion begins.

At the present stage, exactly this situation is happening in Russia.

The state does not have enough funds, it increases taxes, entrepreneurs increasingly evade paying them, therefore, less and less funds go to the budget.

The government is raising taxes again. It turns out to be a vicious circle. I believe that in this situation it is reasonable to lower taxes. This will reduce incentives for non-payment, make honest entrepreneurship more profitable, lead to more government revenue and reduce the level of criminalization of business.

Government regulation.

The subsidy form of regulation involves the provision of government subsidies or tax benefits to individual industries or enterprises. These usually include industries that form the general conditions for the formation of social capital (infrastructure). On the basis of subsidies, support can be provided in the field of science, education, personnel training, and in solving social programs.

There are also special or targeted subsidies, which provide for the expenditure of budget funds according to strictly defined programs. The share of subventions in the GNP of developed countries is 5-10 percent. By allocating subsidies and reducing tax rates, the state thereby changes the distribution of resources, and subsidized industries are able to reimburse costs that cannot be covered at market prices.

State entrepreneurship.

I believe that public entrepreneurship should develop only in those areas where there is simply no other way out. The fact is that, compared to private ones, state-owned enterprises are less efficient. A state enterprise, even if endowed with the broadest rights and responsibilities, always lags behind a private enterprise in the degree of economic independence. The activities of a state-owned enterprise probably contain both market and non-market motives coming from the state. Political motives are changeable, they depend on the government, orders of ministries, etc. Therefore, state-owned enterprises often find themselves in a complex and unclear environment, which is much more difficult to predict than market conditions. It is much easier to predict likely fluctuations in demand and prices than to predict the behavior of a new minister or official, whose decisions often determine the fate of an enterprise. Behind them there may be political goals that have nothing to do with market behavior (the desire to increase budget revenues, the desire to retain staff and increase wages, etc.).

As a rule, state-owned enterprises are not ready for market competition, since they rely not only on themselves, but also on special treatment from the authorities (subsidies, tax breaks, sales guarantees within the framework of government orders). State-owned enterprises have no obligations to shareholders; they are usually not threatened with bankruptcy. All this negatively affects the dynamics of costs and prices, the speed of development of new technologies, the quality of production organization, etc.

Competition in the field of commercial activity is also unacceptable because the private sector is drawn into corruption: through a bribe to an official one can achieve greater results than by reducing costs.

If the economy is saddled with too many state-owned enterprises, their workers find themselves in a difficult situation. They are the first victims of government policies aimed at overcoming emergency situations.

4. PROBLEMS AND LIMITATIONS OF GOVERNMENT INTERVENTION.

It is obvious that a modern market system is unthinkable without government intervention.

However, there is a line beyond which market processes become deformed and production efficiency decreases. Then, sooner or later, the question arises of denationalizing the economy, ridding it of excessive state activity. There are important limitations to regulation. For example, any government actions that destroy the market mechanism (total directive planning, comprehensive administrative control over prices, etc.) are unacceptable.

This does not mean that the state abdicates responsibility for uncontrolled price increases and should abandon planning. The market system does not exclude planning at the level of enterprises, regions and even the national economy; however, in the latter case it is usually “soft”, limited in terms of time, scale and other parameters, and acting in the form of national target programs. It should also be noted that the market is in many ways a self-adjusting system, and therefore it should be influenced only by indirect, economic methods. However, in a number of cases, the use of administrative methods is not only acceptable, but also necessary. You cannot rely only on economic or only administrative measures. On the one hand, any economic regulator carries elements of administration. For example, money circulation will feel the influence of such a well-known economic method as the central bank lending rate no earlier than an administrative decision is made. On the other hand, there is something economic in every administrative regulator in the sense that it indirectly affects the behavior of participants in the economic process.

We must not forget that economic regulators themselves should be used with extreme caution, without weakening or replacing market incentives.

If the state ignores this requirement and launches regulators without thinking about how their action will affect the market mechanism, the latter begins to fail.

After all, monetary or tax policy in terms of its impact on the economy is comparable to central planning.

It must be borne in mind that among economic regulators there is not a single ideal one.

Any of them, while bringing a positive effect in one area of ​​the economy, will certainly have negative consequences in others. Nothing can be changed here. The state that uses economic regulatory instruments is obliged to control them and stop them in a timely manner. For example, the state seeks to curb inflation by limiting the growth of the money supply. From the point of view of fighting inflation, this measure is effective, but it leads to an increase in the cost of central and bank credit. And if interest rates rise, it becomes increasingly difficult to finance investments, and economic development begins to slow down. This is exactly how the situation is developing in Russia.

Deregulation and privatization.

Due to certain imperfections, government intervention sometimes entails losses. In this regard, in recent years the issue of deregulation of the economy and privatization has become more acute. Deregulation involves the removal of legislation that hinders the entry of potential competitors into the market and sets prices for certain goods and services. For example, in the United States in the 1980s, deregulation affected trucks, rail and air transport.

As a result, prices have dropped and passenger service has improved. For American society, deregulation of freight transportation, air and rail transport brought benefits estimated at $39-63 billion, $15 billion, respectively. and 9-15 billion dollars. per year (Economic Report of the President, Wash., 1989. P. 188).

Privatization - the sale of state-owned enterprises to individuals or organizations - is aimed at increasing economic rationality. It is caused by the fact that state-owned enterprises turn out to be unprofitable and ineffective. Western economists emphasize that the public sector does not provide such a powerful incentive to reduce costs and generate powerful profits as private enterprise does.

For an entrepreneur - one of two things: profit or loss. If a private enterprise suffers losses for a long time, it closes. A state-owned enterprise is provided with assistance, so it may not strive to increase its profitability.

This once again proves that government intervention is only needed where it is vitally necessary. In all other cases, the market will more effectively solve the assigned economic problems.

State regulation in agriculture.

In modern Western economies, agriculture is one of the most important areas of active intervention. In this area of ​​production, the main principle of the free market, namely the game of supply and demand, turns out to be practically inapplicable.

True, government intervention is far from a panacea. For example, in Western Europe, governments have traditionally paid great attention to the problems of the agricultural market, but neither producers nor consumers are satisfied with the state of affairs in the agricultural sector.

The source of the problems is that in developed countries, due to high labor productivity, the production of agricultural products significantly exceeds the needs of the population.
a) increasing productivity through the introduction of technical progress and rationalization of production, the most efficient use of all production factors, especially labor;
b) ensuring employment in the agricultural sector and an appropriate standard of living for the rural population;
c) stabilization of agricultural markets;
d) guaranteed supply of the domestic market;
e) concern for the supply of agricultural products to consumers at “reasonable prices”.

(V. Varga “The role of the state in a market economy” - MEiMO, 1992, N 11, p. 139.)

The state sets and annually reviews minimum prices for the most important agricultural products. Thus, producers are protected from a sharp drop in prices. At the same time, the domestic market is protected from cheap imports and excessive price fluctuations through a system of additional import duties. Therefore, in EU countries, food prices are noticeably higher than world market prices. Costs in connection with the implementation of agricultural policy are borne by the state budget.

The functioning of this mechanism can be illustrated using the example of the grain market. The starting point is the estimated price recommended by the state.

It is slightly higher than the market price, which not only guarantees the income of rural owners, but also creates incentives to expand production. As a result, supply exceeds demand. When the market price drops to a certain level, the grain offered by farmers is bought by the state at the so-called “intervention price” in unlimited quantities.

Thus, although each producer must bear the marketing risk himself, in reality this rule does not apply to producers of many agricultural products.

Thus, agriculture remains a weak point of government regulation. However, it seems that the situation in agriculture will remain unchanged.

CONCLUSION.

Studying this topic provides plenty of food for thought. Very often the state is the root cause of changes in the economic behavior of entrepreneurs.

The decisions made (or not made) at the micro level depend on the decisions made by the government. Government policies achieve goals only when they encourage rather than prescribe. When creating favorable conditions for entrepreneurs, their private interest will coincide with the interest of the state, that is, society. Consequently, the state should simply make the sector of the economy that is its highest priority more accessible to entrepreneurs.

It should be noted that the state should not interfere in those areas of the economy where its intervention is not necessary. This is not only unnecessary, but also harmful to the economy.

In general, it is difficult to overestimate the role of the state in the economy. It creates conditions for economic activity, protects entrepreneurs from the threat of monopolies, meets society's needs for public goods, provides social protection for low-income groups of the population, and resolves issues of national defense. On the other hand, government intervention can, in some cases, significantly weaken the market mechanism and cause significant harm to the country's economy, as was the case in France in the late 70s and early 80s. Due to too active government intervention, an outflow of capital began from the country, and the rate of economic growth dropped noticeably. In this case, privatization and deregulation are necessary, which was done in 1986.

It seems to me that the main task of the state is to maintain the “golden mean” in the sphere of influence on the market economy.

1. LIST OF REFERENCES USED.
2. V. Papava “The role of the state in the modern economic system”, Questions of Economics, N 11, 1993.
3. Livshits “The State in a Market Economy”, Russian Economic Journal, N 11-12, 1992, N1, 1993.
4. S. Holland "Planning and mixed economy", Questions of Economics, N 1, 1993.
5. V. Varga “The role of the state in a market economy”, MEiMO, N 10-11, 1992.
6. Zastavenko, Raizberg "State programs and the market", Economist, N 3, 1991.
7. E. Chuvilin, V. Dmitrieva “State regulation and price control in capitalist countries”, Moscow, “Finance and Statistics”, 1991.
8. K. McConnell, S. Brew "Economics", Tallinn, 1993.
9. V. Maksimova, A. Shishov "Market economics. Textbook", Moscow, SOMINTEK, 1992.

The essence, content, principles of the state’s social policy, its priority directions and main goals. Objects of social policy. Social protection, guarantees and support of the population. The main goals and priorities of social reforms in the Russian Federation.

• Essence, content and principles of social policy
• Priority directions of state social policy
• Social protection, guarantee and support of the population
• The main goals and priorities of social reforms in the Russian Federation
• Literature

Essence, content and principles of social policy State policy covers not only, to the greatest extent, the fundamental directions of development of society, but also specific tasks facing individual spheres of public life. In accordance with this, state policies are distinguished: domestic and foreign, economic and social, policy on the development of the political system of society and the state, national and cultural policy, environmental and defense. They often resort to a more detailed division, considering especially, for example, agricultural, technical, demographic, personnel policies, etc. Since all areas and aspects of social life are interconnected, all these areas of political activity of the state also closely interact. Due to the frequent interweaving and “interpenetration”, their delimitation is often quite arbitrary. Moreover, among them there is a direction that is most closely related to the entire complex of human needs and interests. This is a policy addressed to the social sphere - social policy. Socialpolicy - this is the activity of the state, public organizations and charitable foundations, which is aimed at meeting the needs of the population and is implemented through the social sphere. The objects of social policy are: the position of classes and social groups, nations and nationalities, the individual family, the position of a person in society and all aspects of national well-being. It follows that social policy is a capacious concept. In a broad sense, it should cover all aspects of people’s lives: improving working and living conditions, implementing the principle of social justice, social protection and guarantees of the population, employment problems, meeting the material and spiritual needs of people, improving national relations, etc. The main goal of social policy is increasing the level and quality of life of Russian citizens by stimulating the labor and economic activity of the population, providing every able-bodied person with conditions that allow them to ensure the well-being of their family through their work and enterprise. At the same time, the state fully retains its social obligations to pensioners, disabled people, large families, and disabled citizens. The social policy pursued to date in our country does not meet the requirements of its target setting: there are no clear criteria for social guidelines, a mechanism for implementing social policy has not been developed and, as a consequence, the effectiveness of its implementation is extremely low. The assertion that the social development of society, increasing the people's well-being is the main goal of social production and the basis of state policy, for many years was only a theoretical postulate, largely divorced from real life. This can be confirmed by the low standard of living of the population compared even to developing countries. The social situation continues to remain tense and increasingly complicated. Unemployment is increasing and its hidden forms are developing (3-4-day employment, six-month vacations, reduced shifts, etc.). According to some expert estimates, real unemployment is more than 10-12 million people. Moreover, we are talking about unemployment among the most highly professional labor force who are far from elderly. Hence - a sharp decline in material well-being, apathy, disbelief, stress, and an increase in crime. The intellectual part of society, military personnel, women, children and old people are in a very difficult situation. Morbidity and mortality are increasing, and the birth rate is falling. The level of real income of the population in monetary terms today is 40% lower than in 1991. Mass poverty has arisen, the number of citizens with incomes below the subsistence level is about 25% of the Russian population. Income differentiation has increased, and the illegal and unearned basis of property and social stratification has sharply emerged. The solution is to improve the country’s economy and revive the conditions for social activity, which make it possible to solve these and other pressing problems of the population’s life. The content of social policy is revealed through a system of certain principles. Among these principles of the state's social policy, we note the most important: Social justice, which means the measure of equality (or inequality) in the living situation of people, determined by the level of material and spiritual development of society. Social justice is also real democracy and equality of all citizens before the law, actual equality of nations, respect for the individual and the creation of conditions for its development. Social guarantees, which mean the right guaranteed by society to have a job, access to education, culture, medical care and housing, care for the elderly, motherhood and childhood. Increasing the material and cultural standard of living of all members of society, improving working and living conditions, protecting the environment. Social rehabilitation, which means restoring violated social justice. The word “rehabilitation” itself means “restoration,” the return of what was lost. Therefore, it is customary to talk about restoring health, rights, and returning a good name. The problem of social rehabilitation of innocent victims (victims of war, repression, catastrophes, natural disasters, accidents, etc.) has become especially acute in our time. Social charity is closely related to social rehabilitation. The development of social activity of all members of society, the disclosure, enrichment and use of all creative abilities of a person, the combination of the consumption of material goods with spiritual life. Science and new technology will never replace spirituality, although the latter is, say, impossible to implement without the former. More complete consideration of the specifics of life and activities of such population groups as youth, women, and the elderly in order to satisfy their needs and interests to the maximum possible extent. And and finally, the cohesion of all classes and social groups that make up society: improvement of national relations, flourishing of nations and nationalities, strengthening of their comprehensive cooperation in the field of economics, culture, art, etc. Priority directions of state social policy The most important priorities of the state’s social policy in modern conditions are: the creation of optimal social infrastructure and its development; problems of environmental protection and conservation; society's income distribution policy; socio-demographic policy; problems of employment and social protection of the population. In solving socio-economic problems, the social sphere occupies a decisive position. Without an extensive system of the social sphere and its normal development, it is impossible to achieve successful implementation of social policy. Let us remember that the economy is the life support system for humans and society as a whole. There is also a narrower area of ​​the economy directly related to social phenomena, called the social sphere of the economy. The social sphere is the area of ​​life of human society in which social activities are carried out primarily by the state, as well as public and religious organizations, charitable and public funds in the distribution of material , spiritual benefits and services. In a word, everything related to the well-being of people belongs to the social area of ​​the economy. All types of social security are directly included in the social economy, i.e. monetary support, material assistance provided to individual, most often disabled, layers and categories that do not have their own income and sources of livelihood, or have them to a limited, insufficient extent. The most common type of social security is pensions. There are over 38 million pensioners in Russia, with a country population of 147.5 million people. Most of them are pensioners by age: women - 55 years old, men - 60 years old. For certain categories of the population, the retirement age is even lower. Each pensioner is guaranteed a pension payment not lower than the level established by law - the minimum pension, and higher pensions are paid depending on length of service and salary level. In addition to pensions, various benefits and payments are issued from state and local budgets. They can be permanent, long-term and temporary, it is possible to provide one-time, social assistance. All sectors of the economy have one way or another relation to the social sphere, serve and satisfy not only the material needs, but also the spiritual and social needs of people. At the same time, directly related to the sectors of the social profile are: Housing and communal services. It maintains buildings, elevators, water supply, heat supply, energy supply, sewerage, etc. in working order. Everything that makes up the housing and communal infrastructure. Household services for the population. Repair shops, laundries, hairdressers and baths, rental shops, taxis, pawn shops, information and funeral services and much more. Protection, restoration and cleaning of the environment. Services involved in this activity must provide a person with conditions for maintaining a healthy life and normal rest. The central place among the sectors of the social sphere is occupied by: culture, education, and healthcare. These industries are designed to satisfy the most sensitive and subtle needs and tastes of people. Their social significance is exceptionally great. By the way, physical culture and sports are closely related to the healthcare sectors to the extent that they solve the problems of promoting health and promoting a healthy lifestyle. A significant social burden is borne by science, on the achievements of which all sectors of the national economy rely. As already noted, there is also an industry social security of the population. Among the priorities of social policy, concern for the protection and restoration of the environment occupies a special place. The vitality and quality of life of people is directly dependent on the state of the environment and the current environmental situation. After all, how many seas, lakes, rivers, forests and lands have been destroyed by man. It should be noted that ecology and life are interconnected: man, striving for a better life, has so deeply transformed and ruthlessly exploited nature that life is becoming worse, more dangerous and shorter. There is currently a demographic crisis going on: more people are dying in our country than are being born. The mortality rate is more than twice the birth rate. At the current mortality rate, the country's population by 2005, i.e. in 10 years, may decrease from 148.2 million to 138 million people. Such data are provided in studies by the Institute of Socio-Economic Problems of Population of the Russian Academy of Sciences. The social task is the proportionality of what we take from nature and what we give it, how we protect, protect and restore it for the sake of the life of present and future generations. Moreover, the consequences of the disdainful attitude of enterprises and people towards nature and the environment do not appear immediately. Therefore, awareness of the importance of ecology should be manifested in a constant increase in funds allocated for environmental protection. Let's move on to consider the problem of distribution of society's income. As noted earlier, fair distribution of income occupies a special place in state regulation of the economy. This most important socio-economic problem is usually considered from the following angles: First, the distribution of the total income received between participants in production (meaning the personal factor of production). This is the so-called functional distribution. It indicates what share of income is allocated to the corresponding personal factor of production. For example, the functional distribution of ND in the USA (1990) looked like this. In total, approximately 4 trillion 400 billion dollars, including: wages (including additional payments and income of small and medium-sized entrepreneurs) - 3 trillion 600 billion dollars; interest income - $465 billion; corporate profits $300 billion; rental income - 7 billion dollars. This distribution among the subjects - direct participants in the creation of ND - is also called primary distribution. It is no coincidence that these incomes are called basic. Secondly, in the process of implementation of income, income is repeatedly redistributed both among its creators and among persons engaged in unproductive labor. Incomes resulting from redistribution are called derivatives. The main instrument for the redistribution of income is the state budget. ND is also redistributed through the service sector. Lawyers, lawyers, artists, clergy and other non-production workers receive their income for the services they provide to the population. Redistribution of income occurs not only within the country, but also between states. Thirdly, statistics highlight the distribution of income by its value. It characterizes the distribution of income generated in the country between families or individuals. Our statistics, for example, show the structure of income and expenses of the family of a worker and office worker, the family of an industrial worker and the family of a collective farmer. When drawing up consumer budgets, the average family consists of four people: a working husband and wife, as well as two children: a boy - 16 years old and a girl - 7 years old. In recent years, even in some developed countries, inequality in income distribution has been deepening. There is no need to talk about Russia. The issue of poverty is closely related to the problem of inequality. Is it possible to define poverty? Obviously. It is possible to identify those boundaries of family income beyond which population reproduction is not ensured. This level should be at least the minimum level of material security, or the subsistence level (the so-called threshold or poverty line). More than 30% of Russians are below the poverty line. All groups of the population living below this line are poor. The poverty line in the United States is determined by the Department of Commerce, based on the necessary objective needs of a person and the cost of living for a certain period. Thus, in 1990, the poverty line was estimated for a family of one person at $7,740 per year, for a family of two - $10,426, for a family of three - $13,078, and for a family of four - $15,730. Socio-demographic policy. The central place in demography, as is known, is occupied by population reproduction, which occurs due to the natural change of generations, i.e. through fertility and mortality. True, the population of individual regions changes due to migration. Outside Russia in other former republics, i.e. In the CIS countries, over 25 million Russians and about 4 million citizens of other nationalities live. By the beginning of 1995, there were about 670 thousand refugees in Russia. Therefore, the priority directions of migration policy are: protecting the rights and interests of citizens of the Russian Federation living in the republic and abroad; regulating the entry and exit of migrants, providing assistance to refugees and internally displaced persons; creating legal and humane conditions for the reception and accommodation of refugee families; creating understanding among the population forced migration to Russia. The main principle in working with forced migrants is the development of initiative and independence in their own arrangement in a new place of residence, attracting their funds received as compensation for abandoned housing and real estate, providing them with preferential loans, as well as financial resources and material resources in order to provide assistance. The main emphasis in demographic policy should be placed on ensuring healthy offspring, increasing active life expectancy, maintaining health and other qualitative characteristics of population development. Market conditions make strengthening the economic independence of the family one of the priority tasks of socio-demographic policy with children: stimulate the growth of labor income, rather than increase benefits and compensation payments. The policy to reduce mortality is to prevent child and maternal mortality, to reduce the mortality of the male population of working age and the gap in life expectancy between men and women, and to equalize the quality of medical care for residents of cities and rural areas. If demographic problems are not prioritized, a threat is created to the nation's gene pool. Social protection, guarantee and support of the population Advancement towards the market is impossible without the creation of a reliable system of social protection of the population, capable of ensuring the maximum possible neutralization of negative phenomena in the economy. That is, a mechanism must be created to protect the population from such social risk factors as unemployment and inflation. Contents of social protection. Social protection is a system of measures aimed at creating conditions that ensure the economic and moral well-being of vulnerable, unprotected segments of the population, as well as providing they have additional rights and benefits: on taxation and payment of pensions and benefits; on the construction and maintenance of housing, as well as its receipt and acquisition; on public utilities and trade services; on medical care, sanatorium treatment, provision of medicines; on provision of vehicles and travel costs; employment, training, retraining and working conditions; use of the services of communication institutions and sports and recreational institutions; receipt of social services, social and legal assistance. In a broad sense, social protection is that everyone a person has the right to such a standard of living, including food, clothing, housing, medical care and necessary social services, as is necessary for the health and well-being of himself and his family, and the right to security in the event of unemployment, illness, disability, widowhood, old age or another case of loss of livelihood due to circumstances beyond his control (Article 25 of the Declaration of Human Rights, adopted on December 10, 1948 at the UN General Assembly). Unfortunately, the current system of social protection and social guarantees does not correspond to the basic principles of a market economy, does not have sufficient flexibility and needs a radical transformation. On what basic principles should the formation of a new social protection system take place?1. A differentiated approach to various layers and groups of the population depending on their social status, age, ability to work and degree of economic independence. For the disabled (elderly, children, disabled people), the main emphasis should be on maintaining their well-being, ensuring the level of consumption of the most important material and social cultural goods, the creation of reliable guarantees, the amount of individual income, etc. As for the able-bodied, for them state guarantees in the field of living standards should be kept to a minimum. The principle of earning money should apply here, including most benefits that were previously provided free of charge.2. The social protection mechanism should not be formed on the basis of state charity, but as a set of legislatively enshrined economic, legal and social guarantees. The social protection system should not be built on the basis of the episodic adoption of isolated one-time decisions to improve the financial situation of certain groups of the population who find themselves in a difficult situation. In the meantime, we are not dealing with a complex system, but with a kind of “ambulance” for patching up the most noticeable social holes. If such a practice more or less corresponded to the needs of an administrative-command economy, then in market conditions it has no prospects.3. The social protection system must be integrated, operating at all levels: federal, republican, regional, regional, even at the level of an enterprise (firm), joint-stock company with a clear definition of the rights, responsibilities and functions of each of them. The most appropriate way is to create a multi-level system in which the guarantees established at a higher level would be supplemented and developed at lower levels. Thus, at the federal level, it is necessary to maintain the establishment of a minimum level of guarantees for the entire population of the country, regardless of place of residence. Of course, the principles (requirements) of the ongoing policy of social protection of the population are much greater. For example, the federal law “On the Fundamentals of Social Services for the Population in the Russian Federation,” adopted by the State Duma on November 15, 1995, emphasizes such principles as targeting, accessibility, differentiation, voluntariness, humanity, confidentiality, and preventive focus. Social protection system (security) of the population exists in unity and complexity with the system of social guarantees. Social guarantees of the state are the basis, the basis for the implementation of the system of social protection of the population. Every person, as a member of society, has the right to social security and to the implementation of the necessary conditions for maintaining his dignity and for free full development of his personality. Every person has the right to work, to free choice of work, to fair and favorable working conditions and protection from unemployment. Every person, without any discrimination, has the right to equal pay for equal work (Articles 22 and 23 of the Declaration of Human Rights). In its most general form, the state’s social guarantees are the protection of human rights to free work, ensuring the personal safety of citizens in society , creation of a life support system that meets the living standards formed to date. The most important elements, for example, of life support include: 1) material security and the creation of conditions under which the income of all members of society can be realized; 2) the opportunity to receive education, medical care, etc.; 3) ensuring the safety of the environment and maintaining the environment at the required level; 4) improving the financial situation of pensioners, reducing the number of low-income families and citizens; 5) expanding benefits for working women; creating the necessary conditions for educating the younger generation. It should be noted that the system of guarantees of protection against possible negative consequences of the labor market must be supported by the creation of legal, financial, and organizational conditions for their provision. In general, this system should integrate the following guarantees: 1) full employment or the right to get a job; 2) availability of professional training and retraining, as well as qualification growth; 3) maintaining a certain level of material security during the period of retraining or temporary unemployment; 4) protection basic rights of an employee in the sphere of labor, etc. The system of social guarantees should be flexible, designed to prevent possible factors of social risk, and not to eliminate existing sources of social tension. The resource and financial foundations of the social guarantee system should be formed not on a residual basis, but on the basis of the actual needs of society. Therefore, the social guarantee system should be structured in such a way as to automatically maintain the social protection bar at the proper level. The basis for this will be the creation of an objective, scientifically based base of social guarantees in the form of a system of state social standards: minimum wages and social payments (benefits, pensions, scholarships); rational nutrition standards and family budget; living wage and indexation of personal income, etc. In the Address of the President of the Russian Federation to the Federal Assembly on March 6, 1997. it is said that the current practice of distributing social assistance only leads to the dispersion of funds. Currently, there are more than 1,000 regulations in force in Russia, providing for certain social benefits for 200 categories of the population. And the number of people who can qualify for various payments, benefits and compensation reaches almost 100 million people. Since complete social protection of the entire population is unrealistic, it is necessary to speak more correctly and reasonably about social support for individual layers and groups of the population. Such categories of the population are usually called weakly protected, or more precisely socially vulnerable segments of the population. Socially vulnerable should include those who are deprived of the opportunity to improve their well-being independently, through their own efforts, and to maintain the necessary conditions of life and existence. These are, as a rule, large and low-income families, pensioners and disabled people, as well as unemployed people. In current practice, families with low monetary income per family member are considered socially vulnerable; families who have lost their breadwinner; mothers raising children alone; persons affected by repression and natural disasters. Students can also be classified as weakly protected categories of the population. All of the above layers and groups of the population need social support from society, the state, government, large entrepreneurs, public, private and charitable organizations. During the transition to a market economy, the problem of social protecting the population from rising prices, inflation and unemployment. To ensure that rising prices for goods and services do not lead to a catastrophic decline in personal consumption and living standards, income indexation must change. That is, wages, pensions, scholarships and other types of income and payments should increase as retail prices for food, non-food products and services rise. A few words about social charity as a mass and everyday phenomenon of a democratic society. For our society, this is a function of society unusual and new. Although the principles of charity have long been embedded in many Christian commandments. The highest meaning and purpose of a person is to make as many other people as possible happy. Social charity is manifested in the fact that some people (or groups of people) selflessly, following an inner spiritual call, help others: with money, things, services, advice, care , treatment, care and comfort. We must see this as a manifestation of the nobility and dignity of such people. The main goals and priorities of social reforms in the Russian Federation The current economic situation dictates the need to increase the effectiveness of social policy, concentrate efforts on solving more pressing social problems, develop new mechanisms for implementing social policy that ensure a more rational use of financial and material resources. It is necessary to reorient social policy towards enhancing factors that stimulate highly efficient and productive work, increasing on this basis, the personal responsibility of citizens for their material well-being. The strategic goals of social policy are: achieving a tangible improvement in the financial situation and living conditions of people; ensuring effective employment of the population, improving the quality and competitiveness of the workforce; guaranteeing the constitutional rights of citizens in the field of labor, social protection of the population , education, health, culture, housing; reorientation of social policy towards the family, ensuring rights and social guarantees provided to families, women, children and youth; normalization and improvement of the demographic situation, reduction in mortality, especially among children and citizens of working age; significant improvement of social infrastructure. To achieve these goals it will be necessary to: restore the role of income from labor activity as the main source of monetary income of the population and the most important incentive for the development of production and increasing the labor activity of workers; ensure fair distribution of income based on improving the system of individual taxation of income and property of citizens, increasing rates taxes for persons with high personal incomes and reducing the tax burden on low-income groups of the population; stimulate the use of income from labor and business activities, income from property for investing and lending to socially significant programs aimed at creating basic living conditions: improving housing conditions, medical service, education; ensure balance in employment policy in order, on the one hand, to prevent mass unemployment, and on the other, not to impede the release of excess labor in connection with the structural restructuring of the economy; strengthen the targeting of social support for needy citizens on the basis of accounting financial situation of families and the applicant principle for assigning benefits; create full-fledged living conditions for families, women, youth, improve the living conditions of children; increase the role of social insurance as the most important mechanism for protecting citizens in the event of loss of earnings in the event of unemployment, illness, other social and professional risks; ensure stable financing social sectors and social programs, guaranteeing access to medical care, social services, education, culture and recreation for all citizens. Reforms in the social sphere will be carried out in close connection with the economic transformations outlined in the concept of the medium-term program of the Government of the Russian Federation for 1997-2000 "Structural Restructuring and". Taking into account the projected indicators of economic development in the coming period, there will be real opportunities for solving set social problems. An annual increase in gross domestic product and investment in fixed capital, an increase in the volume of industrial and agricultural production, a further reduction in inflation and the budget deficit, a strengthening of the national currency, and an increase in the share of expenditures on final consumption of households in the gross domestic product used. A set of measures has been outlined aimed at implementing institutional reforms, progressive structural changes in production, reforming the tax system, budget and monetary policy. On this basis, favorable conditions will be created for the development of modern competitive industries and activities, primarily high-tech and knowledge-intensive sectors of the economy, small and medium-sized businesses, changes in the sectoral structure of production and its territorial location, improving the quality of products and production efficiency, increasing labor productivity, reducing production costs, creating new jobs. As a result, a reliable economic basis will be created for increasing employment and incomes of the population, expanding the tax base and increasing the amount of funds allocated for social needs and development of the social sphere. At the same time, more active use of social factors and planned measures to improve the financial situation of people, increase the monetary income of the population, ensure a rational employment structure, improve the quality and competitiveness of the workforce will create favorable conditions for sustainable economic development, increase production volumes, and growth in effective demand for goods and services. Based on the projected indicators of socio-economic development of the Russian Federation for the period up to 2000, the intended goals of social policy can be implemented in stages. At the first stage (1996-1997), given the limited resource capabilities of the economy, it is necessary to implement a set of measures to stabilize the standard of living of the population, gradually reduce poverty, reducing the gap in living standards between different categories of the population, preventing mass unemployment, strengthening the protection of labor and social rights of citizens. The most important among these measures are: the elimination and prevention of future arrears in the payment of wages, pensions and benefits; streamlining the current system of benefits and compensation, increasing the validity of their provision; the formation of a system of state minimum social standards; legislative consolidation of the procedure for determining and using the subsistence level indicator , clarifying the methodology for its calculation based on the actual costs of food and non-food products, housing and communal services, transport, household, medical and other services; preventing the mass release of workers from enterprises located in regions with a critical situation on the labor market. When carrying out these measures the main emphasis will be on increasing the efficiency of using funds allocated for social needs, strengthening the targeting of social support, and wider attraction of extra-budgetary financial sources. It is necessary to determine the procedure for interaction in the field of social policy between federal executive authorities, executive authorities of the constituent entities of the Russian Federation and local authorities self-government, federal ministries and departments, public and commercial organizations. At the second stage (1998-2000), when material and financial opportunities begin and appear to increase spending on social needs, objective prerequisites will be created for the real growth of cash incomes of the population, the eradication mass poverty, ensuring an optimal level of employment. At this stage it is planned to: increase the minimum state guarantees of wages and labor pensions to the level of the subsistence level, introduce a new social wage standard - an hourly wage rate; introduce mechanisms for tariff regulation of wages in the non-budgetary sector of the economy on the basis of social partnership, revise the Unified tariff schedule for remuneration of public sector workers, while ensuring that the wages of these workers are brought closer to the level of wages in manufacturing sectors; revise the system of taxation of individual monetary incomes of the population in order to more equitably distribute income and reduce their differentiation; begin the implementation of a comprehensive program for creating and retaining workers places; create a full-fledged system for protecting the labor rights of citizens based on the new Labor Code; begin large-scale pension reform; begin reforming the social insurance system, introduce a new mechanism for insurance against industrial accidents and occupational diseases; improve the procedure for forming budget expenditures for social needs based on the introduction of state minimum social standards. Subsequently, on the basis of stable economic growth and strengthening the orientation of the economy towards more effectively meeting human needs, it is necessary to create strong prerequisites for sustainable social development, the formation of a society open to broad social integration, allowing people to realize their potential to the maximum extent. Contents and goals of social market economy A social market economy is an economy that is focused on the person and the satisfaction of his needs, on the need to adapt the economic policy of the state to the person, and not, on the contrary, the person to the economic policy. This path leads to a free, economically efficient, stable order in society. A legal social state must ensure economic freedom and social justice in a social market economy. Therefore, the concept of a social market economy should reflect a combination of goals - LibertyAndjustice .The social market economy is built on competition, private initiative, self-interest and social progress. Every member of society has fundamental rights: to well-being and free all-round development of the individual, to human dignity. Economic freedom includes: 1. Freedom of consumers to purchase at their own discretion goods and services that are part of the social product (freedom of consumption).2. Freedom of the owner of the means of production to use labor and money, resources and property, as well as entrepreneurial abilities at his own discretion (freedom of trade, freedom to choose a profession and workplace, freedom to use property).3. Freedom of entrepreneurs to produce and sell goods at their own discretion (freedom of production and trade).4. The freedom of every seller and buyer of goods or services to achieve their goals (freedom of competition). Let us use the example of Germany to consider how social justice is realized through the main goals of a social market economy. These goals include:1. Ensuring the highest possible level of well-being. Means of achievement: economic policy focused on improving the level and quality of life of the people; establishing an economically rational order and competition; full employment of the population; economic freedom of economic entities; freedom of foreign trade, etc.2. Ensuring an economically efficient and socially fair monetary system and in particular ensuring stability of the general price level. Means of achievement: the existence of an independent Central Bank of Issue; "stability" of the state budget; equalization of the balance of payments and balance in foreign trade.3. Social security, justice and social progress (family protection, fair distribution of income and property). Means of achievement: production of the maximum amount of social product; government adjustment of the initial distribution of national income; setting social standards; a well-functioning system of social assistance, etc. In a word, a social market economy must be based on freedom of competition, private entrepreneurship and state regulation of the economy. State policy to ensure full employment The best guarantee against the risk of unemployment is the state employment policy. The success of the full employment policy in the national economic aspect means the production of a social product in a larger volume, which significantly expands the basis for achieving the effectiveness of the state's social policy. From the point of view of employees, this policy has a positive impact on their current income. Such a guarantee of income has a multiple effect: it eliminates the need to provide unemployment benefits, social assistance and other types of assistance; constant concern for labor income forces, first of all, personal concern for one’s own life benefits, as well as for members of one’s family; economic dependence on the state is reduced. All this together generates faith in life and hope for the fulfillment of one’s needs through participation in the economic sphere. Full employment also has a long-term impact on the labor market (labor force) and on employment conditions: full employment, as a rule, is characterized by a state of general rapid growth in labor income (in labor markets the supply for most professions and activities is reduced; favorable conditions are created for negotiations with employers with the participation of a trade union, etc.); full employment increases the interdependence of the labor market (depletion of labor reserves in the regional and professional labor market), affects the demand for labor in other labor markets. In order to attract labor from other markets, employers must (are forced) to improve working conditions. Local employers, due to the danger of labor outflow, are also forced to further improve working conditions and increase wages. Literature

1. Address of the President of the Russian Federation to the Federal Assembly on March 6, 1997. Section 3, clause 3.2.

2. Law of the Russian Federation "On the fundamentals of social services for the population in the Russian Federation."

3. Program of social reforms in the Russian Federation for the period 1996-1997.

4. Program of the Government of the Russian Federation "Reforms and development of the Russian economy in 1995-1997".

5. Social policy and labor market: issues of theory and practice. - M., 1996.

6. INTRODUCTION to market economics / Edited by A. Livshits and I. Nikulina. - M., 1994, chapter 13.

7. Fundamentals of a market economy. Ed. V. Kamaeva and B. Domnenko. - M., 1991, ch. 19.

8. Market economy. Textbook. - M.: Somintek, 1992, vol. 1, chapter 14.

9. Textbook on the basics of economic theory. - M., 1994, chapter 16.

10. Market economy. Textbook. - M., 1993, ch. 19.

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INTRODUCTION 3
1. MARKET MECHANISM AND ECONOMIC REFORM 4
2. ESSENCE AND GOALS OF SOCIAL POLICY 6
3. MAIN DIRECTIONS OF SOCIAL POLICY OF THE RF 13
CONCLUSION 15
REFERENCES 16

INTRODUCTION
Any market economy cannot exist and function without government regulation. Uncontrolled market processes are destructive to society and nature. Therefore, a market economy, more than any other, needs regulation.
The relationship between state regulation of the economy and social policy pursued by the state is obvious. State regulation of the economy is the process of the state’s influence on the economic life of society and related social processes, during which the economic and social policy of the state is implemented.
Article 7 of the Constitution of the Russian Federation establishes that the Russian Federation is a social state, the policy of which is aimed at creating conditions that ensure a decent life and the free development of people.
This provision is very important, since only a state can be social in which the main tasks are: state support for the family, motherhood, fatherhood and childhood, labor protection and health of people, the appointment of pensions and benefits for the disabled, the establishment of a guaranteed minimum wage. -ra wages.
Every person has the right to count on a decent standard of living. Achieving this goal is one of the most important tasks of any democratic state. The Constitution of the Russian Federation declares, i.e. proclaims the rights of citizens and defines guarantees for their implementation, thereby confirming the fundamental position that our country is a “social state”, where guarantees of social protection of the population are established by the state authorities.

1. MARKET MECHANISM AND ECONOMIC REFORM

The implementation of economic reform in Russia showed that the calculation of its initiators on the automaticity of the formation of market mechanisms did not come true. A market economy, and this is evidenced by world experience, can only be created with an active regulatory role of the state, which allows reforms to be carried out with the least economic and social costs.
As is known, the direction of the reforms and the methods of their implementation dramatically affected the state of the social sphere, and above all the income policy of the population. It is in income policy that all social problems are focused. To begin to solve them, fundamental changes in the position of the state are necessary. First of all, at the new stage of economic transformation, we must stop considering income as the main source of reducing inflation. The policy of containing income has already led to a threefold decrease in consumer demand and was one of the main, if not the main reason for the reduction in production volumes in the country. Indeed, in a market economy, it is income that, through increased demand, encourages the expansion of production.
This means that we need an approach to income policy that would create an economic incentive to increase production volumes and could become powerful support for measures of direct government influence on the rise in production.
The new approach should consist of faster growth of workers' incomes (and primarily wages) compared to rising prices.
The implementation of this policy will be successful only if it is accompanied by assistance to domestic producers in the domestic market, reasonable tax policy and increased control over financial discipline.
The focus of income policy on reviving production will create conditions for solving other social problems: increasing jobs, reducing social tension, developing the sphere of paid services, etc.
An important direction of the state's social policy in the field of income should be the reduction of unjustified differentiation in income. This can be achieved in two ways: faster income growth for workers and low-income people and slower growth for those with high incomes.
The organizing beginning of all measures to implement such a policy should be the legislative approval of a system of minimum consumer budgets: for one employee, a standard family with children of different ages, a pensioner, a student, etc. At the same time, it is important to reorient the budget system from the physiological minimum to a level that ensures normal reproduction of the labor force.

2. ESSENCE AND GOALS OF SOCIAL POLICY
The most significant determinant of the social sphere, especially during the period of intensive structural restructuring, breaking down the old mechanisms of self-regulation of society, is social policy, since there is a need for targeted impacts on the social environment in order to avoid the huge social costs characteristic of economic and political reforms. It is social policy that is called upon to solve the problem of the relationship between economic development and the preservation of social guarantees, reducing contradictions in economic and social processes that occur more or less spontaneously.
Social policy is one of the most important areas, an integral part of the internal policy of the state. It is designed to ensure expanded reproduction of the population, harmonization of social relations, political stability, civil harmony and is implemented through government decisions, social events and programs. It is precisely this that ensures the interaction of all spheres of society’s life in solving social problems, exhibiting its properties: universality (the all-encompassing nature of the impact of social policy on all aspects of people’s social reproduction); inclusion (the ability to penetrate into all spheres of life) and attribution (the ability to combine with any social relations, social phenomena and spheres).
Real social policy is determined by the properties that have developed in history, the specific conditions of the era, the characteristics of the economic, political and cultural development of society, the probabilistic and informational factors of its formation.
Over time, social policy expanded both the objects of its influence and its content. The scale of government intervention in social processes grew. Now it is not limited to certain categories of the population.
The direct object of social policy is the living conditions of almost all social and demographic groups. It is increasingly striving not only to correct the negative social consequences of economic development, but to prevent them, focusing its attention on performing a constructive function associated with social prevention and positive improvement of individual elements and the entire dominant system. At the same time, political forces strive, in the interests of achieving their goals, to maneuver, maintaining a balance between the desired and the possible.
The theoretical and legal basis of social policy is the provision of the Constitution of the Russian Federation, adopted in December 1993, where Article 7 states that the Russian Federation is a social state, the policy of which is aimed at creating conditions that ensure a decent life and free development person. This provision of the Basic Law of the Russian Federation echoes the provisions of the European Social Charter and the European Convention for the Protection of Human Rights and Fundamental Freedoms, adopted by the UN General Assembly in 1948, as the convention states that every person has the right to the same standard of living, including food, health, housing, medical care, social services necessary to maintain the health and well-being of himself and his family, the right to security in the event of unemployment, illness, disability, widowhood, old age or other loss of means existence due to circumstances beyond his control. The implementation of these human rights determines the content of social policy.
The subjects of social policy are the state and the structures of the emerging civil society (public associations, organizations, enterprises, firms).
The central place in social regulation belongs to the state, represented by its representative and executive bodies operating at the federal, regional and local levels. They formulate a general concept, determine the main directions of social policy, its strategy, tactics, provide a legislative and legal basis, and implement specific provisions on the ground.
Social activities carried out within enterprises and firms become important in solving social problems of certain categories of the population; activity of political, trade union and public associations, charitable and voluntary organizations. They implement social policy within relatively narrow limits corresponding to their competence. The complementarity of social state regulation with the implementation of programs of enterprises, firms, and other civil society institutions increases the effectiveness of social policy, its focus, targeting, and flexibility. Thus, the mechanism of social policy appears as a variety of subjects, programs, their financial basis, methods and means of implementation with the leading role of the state and state social regulation.
The goal of social policy is to improve the well-being of the population, ensure a high level and quality of life, characterized by the following indicators: income as a material source of existence, employment, health, housing, education, culture, ecology. Therefore, social policy is associated with the distribution of income, goods, services, material and social conditions for the reproduction of the population. It is aimed at limiting the scale of absolute poverty and inequality, providing material sources of livelihood for those who, for reasons beyond their control, do not have them, providing medical and educational services, expanding the network and improving the quality of transport services, and improving the environment. Social policy proceeds from the fact that an indispensable condition for maintaining the well-being of every person should be his/her feasible participation in this.
Society legally guarantees the minimum of all benefits necessary for the life of a person and family. It is determined by the characteristics of the country: territory, climate, population size, the nature of the social system, ideology and practical activities of ruling groups, political situation, level of economic development, national specifics, established cultural stereotypes of behavior.
Social policy influences the monetary income of the population, as well as the production of goods and services in sufficient quantities adequate to the demand, volume and structure of the needs of the population. Its main directions are: regulation of wages, income, employment, improvement of labor qualities of workers, maintenance of health, cultural and educational level, development of social infrastructure, social security.
The monetary income of able-bodied citizens is regulated through wage policy by establishing a minimum wage or basic parameters of wages at state-owned enterprises. By purchasing goods and services on the commodity market, social policy indirectly (for private enterprises) and directly (for public enterprises) participates in the primary distribution of newly created value.
The monetary income of disabled groups of the population is directly determined by social policy. And here its participation in the secondary redistribution of primary income becomes decisive. The redistribution mechanism consists in the state withdrawing a share of primary income in the form of various types of taxes, as well as forced insurance contributions and the financing of social programs. Taxation and social payments are carried out differentially, depending on the amount of primary income. At the same time, taxation is based on the principle of progressivity. The higher the income, the higher the taxes. The basis of social payments is an inverse relationship.
The social security system is at the center of the social mechanism for supporting cash incomes of disabled citizens. It consists of two subsystems: social insurance and public assistance. They differ in objects, amounts of social benefits and sources of financing.
Compulsory social insurance is intended to compensate for material losses caused by temporary or permanent cessation of work due to age, illness, industrial injury (payment of pensions, sick leave, unemployment benefits, etc.). The basis of social insurance is formed by contributions specifically intended for this purpose. They are paid by employers and the workers themselves, and represent part of the earned funds allocated for social insurance. This is an act of self-help.
The state assistance system provides regular cash payments, a variety of in-kind assistance and individual social services. Its objects are the economically inactive population and participants in social production who do not have sufficient income from the point of view of the generally accepted standard. The basis for financing public assistance is revenues from the state budget.
Both of these subsystems operate on the basis of the principle of solidarity, the essence of which is the redistribution of income from some socio-demographic groups to others. The financial source of social security is the current income of participants in social production, withdrawn through taxation channels (income tax, enterprise taxes, etc.) and targeted contributions (contributions from enterprises and the insured themselves). These taxes and contributions form public funds - the financial basis of social benefits.
The activities of the state are not limited only to the redistribution of monetary income. It also includes the formation of public funds and financing of social service sectors that satisfy the needs of the population in obtaining general and vocational education, maintaining health, housing, a healthy environment, and transport. Social policy is responsible for the availability of a minimum (at this stage of development of society) of services to all segments of the population.
The employment policy promotes the employment of everyone who is ready to start work and is looking for it, achieving maximum productivity, ensuring each potential employee has the freedom to choose employment, the opportunity to receive special training, and use their skills and abilities to do so. the type of work for which he is best suited. Employment policy has short-term and long-term objectives. Short-term ones include mitigation or neutralization of the negative consequences of economic downturns and reforms. Long-term - establishing a ratio of categories of workers by industry, profession and qualification that is favorable for social development; maintaining the level of use of labor potential; bringing the size and composition of the workforce into line with such needs; positive adaptation of the employed to economic transformations; improving the quality of the workforce outstripping technological progress.
Social policy is closely related to economic policy. It is difficult to separate them in the complex of social regulation, although they differ in specific goals, objectives, objects, methods, means, and institutions. Economic policy is aimed at regulating material-production relations of social development and solving economic problems. Its results have an active influence on the state of the political, cultural, spiritual and social spheres of society. Social policy regulates social processes, solves the problem of improving human well-being, ensuring the proper level and quality of life. Its results also affect all aspects of life. They both represent independent, equivalent areas of social regulation. But their independence is relative, because they are in complex interdependent relationships. Any social program requires an economic justification, and the amount of social expenditure depends on the economic state of society. On the other hand, exceeding the economic capabilities of implementing social measures, neglecting economic feasibility when redistributing income can cause damage to the economy, undermine the material foundations of social progress, lead to accelerated inflation and aggravation of the country’s economic problems.

3. MAIN DIRECTIONS OF SOCIAL POLICY OF THE RF
Effective social policy is impossible without effective, balanced, non-corrupt state power, responsible to the people, without ensuring the unity of social policy at various levels of government. Research shows that at different levels of government there remains a different understanding of how social policy should be structured today; the essence of the subsidiary model chosen as the main one in the Development Strategy of the Russian Federation until 2010 is understood differently.
The most important resources for changing social policy in Russia are:
democratization of management of social processes,
updating the ways of its economic organization,
changes in social planning,
regulation of disproportions in social development,
creation of a unified system for collecting and processing information, studying the standard of living of the population,
conducting expert assessments and forecasts of situations developing in this area.
Changing planning in the field of social policy involves the development of a whole set of medium-term and long-term guidelines based on scientific forecasts of trends in social and economic development and reliance on new, scientifically based state social standards in social policy, the development of optimal action programs . One of the most difficult modern problems is the creation of a modern unified system of social support, ensuring the differentiation of the functions of the structures entrusted with this work, and the effective spending of social funds.
The problem of integrating the activities of non-governmental, voluntary and public organizations in the field of social policy deserves special consideration. Each of them performs its own function, some - charitable, some - lobbying. It is important to create a unified social space for such organizations so that they develop legitimately, are accountable to society, can receive funding, and have professional staff. Relying on them, the state must still retain its central role and responsibility for the results of social policy.
When building a new social policy, it is important to take into account the extent of Russia’s involvement in the processes of globalization, world integration, and prospects. It is obvious that the creation of favorable conditions for all groups of equal access to all available opportunities, in order to achieve social justice and cohesion of all citizens, is associated with the socialization of global policy in the interests of the national social policy of Russia, i.e. it is important to build national policy taking into account new global risks; make full use of the possibilities of international law and organizations that are already trying to regulate social processes at the global level, as well as the possibilities of economic support provided to countries during periods of structural restructuring of the economy; take a worthy place in the emerging structure of global social regulation, use it in your own interests; take part in the development of norms, standards, policies and institutions in the interests of people and the protection of their rights.

CONCLUSION
Social policy is one of the leading areas of public regulation. It has its own specific goals, objectives, objects of influence and is aimed at reducing contradictions in all spheres of society. Social policy is designed to regulate well-being, maintaining it at a level acceptable both for the individual and for society, and is responsible for observing basic human rights to a minimum extent and ensuring a guaranteed minimum of material living conditions.
The legal and theoretical foundations of modern social policy are contained in the current Constitution of the Russian Federation, and the specifics are determined by the characteristics of the transition period in Russia, shifts in political and economic structures, historical traditions of the country's development, cultural characteristics, and public consciousness. Effectiveness is determined by how adequate its content and mechanisms are to these changes.
Social policy as a relatively independent direction of the state’s internal policy influences not only its object, but also all other social structures. The sphere of its direct or indirect influence extends to both political and economic processes. The effectiveness of social policy depends on how correctly the priority areas of the social sphere for development at the moment are chosen, as well as on the ability to rationally use the financial resources allocated for this.
Social policy, along with a protective function, performs a constructive function related to prevention and positive improvement of both individual elements and the entire social system as a whole.

BIBLIOGRAPHY

1. Constitution of the Russian Federation. Adopted by popular vote on December 12, 1993. "Rossiyskaya Gazeta", No. 237, dated December 25, 1993.
2. State regulation of the economy in Russia // Investments in Russia. – 2002.- No. 10
3. Efimova E.G. Potapova I.S., Zaslavskaya M.D. Economic theory: Textbook. Part II 2nd ed., rev. and additional – M., 2003.
4. Kulikov L.M. Basics of economic theory. Textbook allowance. – M.: Finance and Statistics, 2007.
5. Sazhina M.A., Chibrikov G.G. Fundamentals of economic theory - M., 2006.
6. Oreshin V.P. “State regulation of the national economy.” – M: Yurist, 2006.
7. Fundamentals of Economic Theory / Ed. Nikolaeva I. UNITY-DANA, 2003.
8. Revenkov A. Planning in the system of state regulation of the economy. // Economist. – 2008. -№8.
9. Tanzi V. The role of the state in the economy: the evolution of concepts // MEiMO. – 2007. - No. 10
10. Bobkov V. Level and availability of social guarantees // Man and labor. - 2008. - No. 1. - P. 55-62.
11. Ten years of Russian reforms through the eyes of Russians // Sociological Research. - 2002. - No. 10.- P. 22-37.
12. Kalashnikov S. Social state: evolution and stages of formation // Man and work. - 2007. - No. 10.- P. 47-55.
13. McIntyre R. Social policy in countries with transition economies in the aspect of human resource development // Problems of forecasting. - 2007. - No. 2. - pp. 142-150.

Social policy is a set of measures aimed at creating conditions to meet the needs of the population, increasing their well-being and providing a system of social guarantees.
Social policy comes down to government assistance for socially fair distribution of income in market conditions in a mixed economy. It took a long time for countries with market economies to recognize that the distribution of income that is fair from the market point of view is unfair from the human point of view. In market conditions, there is only one criterion of justice: any income received in free competition in the market for goods, services, capital and labor is considered fair.

From the point of view of the market, high incomes are fair for those who succeed, low incomes for those who go bankrupt and fail.
Even in the United States, social security law came into force relatively recently (since 1937). Its purpose was to protect the American people from the economic destitution caused by old age and unemployment.
This system consists of 3 parts:

1. Old age pension and survivors insurance;
2. Unemployment Insurance;
3. Providing benefits to the elderly and other forms of social security. In economics, it is generally accepted that technological progress and economic growth contribute to the growth of well-being of members of society, but in reality everything is completely different. For example, in 1900, the average per capita income per year for Africa as a whole was equal to 500 US dollars and was 9 times lower than in England (the richest country at that time). And in 2000, the average African per capita income was $1,290 and was almost 20 times lower than the average per capita income of the richest country, the United States. (ME and MO, No. 1, 2001, pp. 7-8). But even in the USA itself in 1998, 12.7% of the population was below the poverty line (ME and MO, No. 8, 2000, p. 84).

In the Republic of Belarus in 2000, 78.8% of the population had income per family member below the minimum consumer budget (BEZH, No. 2, 2000, p. 6).
And yet, it cannot be denied that social policy depends on the results of economic growth and is the goal of economic growth in modern society.
Social policy is carried out at different levels of economic activity:

• at the firm level;
• at the regional level;
• at the national level;
• At the interstate level (UNESCO, UN).

To formulate state social policy, it is necessary to determine the standard of living of the population. The standard of living of the population is understood as the level of consumption of material and spiritual goods.
To measure the standard of living, the “consumer basket” is taken as a starting point, including a set of goods and services that ensure a certain level of consumption. There is a “minimum level” of consumption and a “rational level” of consumption.
“Minimum level” is a consumer set, the reduction of which puts the consumer beyond the boundaries of providing normal conditions for his existence, i.e. below the poverty line.

“Rational level of consumption” - reflects the amount and structure of consumption that is most favorable for a person.
To develop social policy, it is also necessary to use the indicator of the quality of life of the population.
The following indicators are used to determine quality of life. as: 1. Working conditions and safety; 2. Condition of the habitat; 3. Availability of free time for hired workers; 4. Cultural level of the population; 5. Physical development and health of citizens; 6. Personal and property security of society members.
In any modern state there are differences in income and wealth.
Income is the amount of cash. received over a certain period of time and intended for the acquisition of goods and services for personal consumption.
Wealth is the financial assets accumulated by the family. as well as real estate and durable goods.
The Lorenz curve is used to measure the degree of inequality in the distribution of income in a society.
Lorenz curve

The proportion of families (100%) is located on the x-axis. on the y-axis is the share of income (100%). The theoretical possibility of absolute equality is represented by the bisector OA. This means. that 10% of the population should receive 10% of all income. and 20% of the population - 20% of income. However, in real life everything looks different. For example. 60% of the population receives 40% of the income. and 80% of the population receives less than 60% of income.
The Lorenz curve is represented by an arcuate "L" curve. The greater the bend of the arc, the greater the degree of inequality in society. However, the state can, through progressive taxation, reduce the degree of inequality between rich and poor. This is represented in Graph 1. The Lorenz curve was originally represented by the "L" curve. and then, as a result of state social policy, it will be an “L” curve, i.e. inequality will decrease.

The quantitative degree of inequality in income distribution can be calculated using the Gini coefficient.
KG=L/OBA. where L is the area of ​​the shaded area;
OVA is the remaining part of the triangle.
The Gini coefficient is in the range between 0 and 1. In the Republic of Belarus, the Gini coefficient was 0.270 in 2000 (Statistical Yearbook, 2001, Min. Min. Statistics and Analysis of the Republic of Belarus, 2001, p. 138).
In addition, the decile coefficient is widely used to assess income differentiation.
The decile coefficient expresses the ratio between the average incomes of the 10% of the highest-paid citizens of a given country and the 10% of the least wealthy citizens. In the Republic of Belarus the decile coefficient was in 2000.

1. (ibid., p. 138).

Social protection of the population in the Republic of Belarus is provided for in the “Main directions of socio-economic development of the Republic of Belarus for the period until 2010”:

1. Creation of targeted social protection;
2. Streamlining benefits, allowances and additional payments paid at the expense of enterprises and organizations by including them in tariff rates and official salaries;
3. Providing guarantees for citizens in the field of labor, social protection, education, health, culture, and housing.
4. Normalization of the demographic situation, increase in life expectancy, decrease in mortality.
5. Ensuring effective employment of the population, improving the quality and competitiveness of the workforce;
6. Creation of economic and legal conditions for increasing labor activity, developing entrepreneurship and business initiative of the working population;
7. Increasing the living standards of the population;
8. Improving the condition and effective development of the social environment; Primary attention should be paid to improving the healthcare system as one of the most important priority areas of the country's socio-economic development. The main goal here is to meet the needs of the population for affordable medical and drug care.

Education is one of the most important components of the formation of human capital. The main goals of its further development are to meet the needs of citizens in education, the harmonious development of personality and creative abilities, increasing the intellectual and cultural potential of the country based on the creation of a national education system of the Republic of Belarus that meets the tasks of the new stage of development of society (BEJ, No. 2, 2000, p. 10-12).

Source: Svetlitsky I.S.. Economic theory: Electronic educational and methodological complex for students of all non-economic specialties. - Mn.: BSUIR. - 286 p.. 2006(original)

More on the topic: The need and essence of state social policy in a market economy. Income inequality. Lorenz curve. Gini coefficient:

1. Social policy of the state, its formation. Types and main directions. Lorenz curve and Gini coefficient
2. 96. The problem of poverty and income differentiation.
3. Lorenz curve
4. 2.2. The need and essence of state regulation of property in a market economy. Denationalization and privatization
5. Chapter 1.6. ROLE OF THE STATE IN SOCIAL POLICY. FEATURES OF THE STATE AS A SUBJECT OF SOCIAL POLICY AND ITS CONSTITUTIONAL RESPONSIBILITIES IN THIS FIELD

The previous section showed that the acceleration or deceleration of economic growth affects the volume of employment and the standard of living of the population. Economic activity of people ultimately has the goal of creating a material base for improving living conditions. However, the market mechanism cannot automatically solve all social problems, so the state corrects the market through social policy. In the broad sense of the word social It is customary to name everything that directly relates to society, people, and their lives.

15.1. The essence and main directions of social policy

Social politics - a system of measures carried out by the state to solve social problems related to meeting people's needs.

However, this general definition needs to be specified and clarified. Every society consists of a variety of social groups, each of which has its own interests, values ​​and needs. Social benefits - material and spiritual are in short supply; they are not enough to meet the needs of everyone. As a result, competition is created between groups for mastery of sources of social benefits, including the right to establish rules for their distribution. The main lever for realizing the interests of social groups is power, which makes it possible for some social groups to impose their will on other groups through state institutions.

Social policy covers social sphere:

material conditions of non-productive human activity - housing, services, healthcare, education, trade, catering, public transport, material resources for culture and sports, etc.;

intangible benefits - a set of various types of spiritual activity, including self-organization and self-government.

The goal of social policy is to achieve social justice and reducing social inequality. The categories “social justice” and “social equality” are not identical. It cannot be assumed that the presence of social inequality means social injustice, that achieving social justice will eliminate social inequality.

Social inequality there is an unequal situation in the social sphere, it is expressed in the fact that some groups of the population consume more than others, play a greater role in the management, for example, of production, have greater opportunities for leisure, etc. Is this fair or not? Such a question in abstract form makes no sense. Equity assessment depends on the norms and values ​​of a particular society, on the state of mass and group consciousness in a particular historical time. What is considered fair in a given society may have been perceived as unjust in the past, and

turnover This means that social policy is historical in nature and changes over time.

In principle, social justice in a society with a market economy is associated with the distribution of benefits in accordance with the achieved level of labor and production efficiency. In a number of developed countries, recently, social justice involves ensuring a decent standard of living for every citizen, equalizing the standard of living of people.

The emergence of a trend towards social leveling in developed countries it is expressed in the formation of the so-called middle class, which includes that part of the population that has a stable and relatively high level of income. For example, in the United States the middle class makes up approximately 70% of the total population.

A market economy presupposes the presence and persistence of social inequality, since in the course of competition some economic entities achieve high levels of efficiency and income, while others, acting less successfully, suffer losses or even go bankrupt. Ultimately, this inequality is determined by the differences between market participants in their abilities, knowledge, and skills.

However, at a higher phase of its development, the market provides conditions for social equalization, but only within certain limits. There are two explanations for this:

The market by its nature is a form of compromise between its participants. Its results can be realized only under the condition of mutual, reciprocal satisfaction of needs;

at a higher stage of development, with market saturation and intense competition, sales participants are interested in high consumer incomes.

In some cases, the contradictions between social groups can be so great that the function of the social equalization market can be erased, then a strong state social policy is necessary.

Under normal conditions, the state only carries out market correction ka. It consists in the development and implementation of certain principles.

1. Determination of the degree of freedom. State policy should be based on providing freedom of activity, self-realization of group interests, but within the framework of adopted laws. The freedom and rights of some citizens are limited by the freedom and rights of other citizens.

2 Solving social problems by the state by coordinating the interests of various social groups, finding a compromise between them.

3. Joint responsibility of social groups in relation to those citizens of the country who are weak or limited in their labor capabilities.

Main goals social policy:

the formation of such levels of well-being among various groups of the population, the differentiation of which would not contradict the principles of social justice;

creation in society of such mechanisms for creating welfare that would stimulate the population to work effectively and develop the economy;

satisfaction of reasonable material needs of all members of society in amounts that maximally contribute to the development of the human personality.

Social policy performance indicators - level and quality of life of the population. The quality of life characterizes the general conditions in which people live, the entire range of its properties, reflects the degree to which people’s needs are met, comfort, convenience of living conditions, their adaptability to modern requirements, painlessness and duration

Concept "standard of living" to a greater extent characterizes the quantitative measure of people’s well-being, the level of consumption of material goods. To assess the standard of living, indicators such as consumption of basic products per capita or for one family, which are then compared with consumption standards. Indicators are important for assessing living standards consumption patterns (for food, durable goods, services, etc.).

Widely accepted standard of living indicators include cash income of the population per person or family.

Social policy includes two main parts: income policy and employment policy.