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воскресенье, 30 ноября 2014 г.

Twenty years of "belt-tightening" and all in vain


 Anton Siluanov: Russians will have to "tighten their belts"

In the near future the Russians will have to "tighten their belts" and learn to live in the new economic paradigm, said Nov. 24 at an economic forum "Russia's economic policy in the context of global turbulence," Finance Minister Anton Siluanov. According to the official, it's time to implement difficult economic decisions and the rejection of "extra budgetary spending," the correspondent of IA REGNUM.

"We will not be as much income as six months ago, will not be such salaries," - said Siluanov. The reasons for the current "turbulence" of the Russian economy are not so much imposed sanctions on it, although they also, as in the fall in energy prices, which are dependent on the Russian economy is high, as in the past. So, because of sanctions Russia's budget would wipe about 40 billion dollars, while weakening of the ruble will have up to 140 billion foreign exchange losses of the country.



"At $ 108 a barrel, we were too rich and strong ruble was more than could really afford. Now everything comes into place, "- said Siluanov. Now the government decides on what the priorities are not spending the country can refuse in the near future. Obviously, the reduction in the budget for next year is inevitable, he said.

Although the fall of the ruble and the dollar stopped stabilized, the Russian economy should move away from development due to the growth in consumer demand, to focus on the domestic economy and the preservation of savings. "We need to create a long resources. This is primarily industries such as savings funded part of pension, life insurance and banks. These are the long resources, due to which the budget is supported by most of the developed countries ", - said Siluanov. To implement the said directions of development necessary to stabilize inflation and work "on changing the investment climate." "The situation is not simple, but we have to mobilize, implement the decisions which had previously been postponed because of the complexity," - he concluded.
Source: regnum.ru



Actual Archive 1990
Small observations about the concept of transition from economical economy to a regulated market

In our society has come a time when every citizen must decide in relation to the proposed concept of government transition to the so-called regulated market economy. Everyone has to decide what is the concept? Whether the country will be on the development of a new track, or slide into chaos? We need to understand whether it is really a program that can bring the country out of the crisis, and thus create a better life, and then you need to support the government, or another lie by which the current system of government is trying to keep themselves in a new environment, and then we must actively oppose to once again do not be deceived.

To understand the essence of the concept proposed by the Government must address three questions:

1. What measures changes in the economy are invited to spend?

2. On the basis of any causal relationships derived the necessity of the proposed measures?

3. What are the possible implications of the proposed changes and how they affect the lives of the people?

And answers to these questions, take a decision in support of the proposed concept or - against.

The concept of transition to a regulated market economy offers "necessary to ensure real independence and economic responsibility of enterprises, both free producers." Until now, no matter how much said about the self-supporting and self-reliance of enterprises, they do not already done so, and in this concept, there is no convincing arguments showing that this time the company will operate as independent producers. The government should clearly tell the people that it's going to take to the decentralization of the economy, for the emergence of market participants, that is, for the emergence of independent producers, without which there can be no full-blooded market. Or will it be the transfer of enterprises in the hands of the producers themselves, or sale to private hands. There should be no reticence, as this is concerned, virtually every citizen. If enterprises remain in state ownership, then about any independence of speech can and can not. The concept is nothing that is not visible. The uncertainty on the property, as well as the fact that the government has consistently failed to meet the demands of the miners, to transfer them to the mines, it is clear that the government does not intend to give up their monopoly power and talk about the autonomy of enterprises, both free producers, this concept no more than a beautiful phrase.

In the proposed concept does not solve the main issue - the property, and thus the responsibility. Without a solution to the same problem of property all other activities are offered by the government wishful thinking. And the creation of "... the pricing mechanism responsive to the dynamics of supply and demand", while maintaining the all-encompassing state ownership, where the supply is formed of a single owner, under the conditions established by him deficit - is the establishment of new monopoly prices, and nothing else.

Businesses can not operate as independent producers and due to the fact that the state retains a monopoly on credit, as well as the right to set interest rates. While the government claims that the competition our economy necessary as air, it is, nevertheless, does not create conditions for the emergence of independent owners. A transfer of ownership of going directly to work for them, it also opposes. So can we trust the government that it really wants to do what is says in the concept? Can the question arises, exist in the absence of free competition of producers? Therefore, then the question arises - and whether the government is not trying to drive us around by the nose? But let's not jump to conclusions, but a closer look to the proposed concept.

If in respect of property the government says is vague and unintelligible, then announced a price increase is not ambiguous. This, apparently, is the radicalism of the concept. Why, then, will this price increase?

Price increases without changing the relations of production, will lead to a redistribution of income in society, to a lowering of the standard of living of the bulk of the workers - all those who live at the expense of their labor. This method of robbing the people of the ruling oligarchy is not new and is used for the first time we did not. However, before this was done smaller, more covertly, for example, through a monetary reform, through various contractual prices, special prices for trendy products, pricing of new products, or simply replacing labels. But, as we see, all these measures have not led to the economic development of the country. Is not followed and the economic recovery and then raise prices.

The robbery of the people is a serious matter and, therefore, the government attracted to the justification of the price increase known academicians and reputable business executives, so the proposed changes and called concept. Realizing that the share price increases may be their last action in the status of members of the government, fearing mass protests, they came up with compensation for the population as a temporary handouts, which is no more than 5 - 10% of the revenue received by the government. Based on the proposed concept of the government, will receive an additional 63.8 billion. Rubles, and this is not counting the money that will be spent on compensation.

According to the proposed concept, food prices is proposed to increase by 2 times (because their calculations suggest the government), and the payment will be for one adult -45 rubles in the first embodiment, or 15% of salary - in the second. With an average salary of 220 rubles payment will be 45 rubles or 33 rubles, if we take 15%. The necessity of compensation, with an increase in food prices by 2 times, taking into account that we have to spend money on food for more than 50% of the salary shall be not less than 110 rubles. And this is without taking into account the growth of prices of manufactured goods, and the fact that the food products of high demand, prices will rise more than 2 times. In addition, the proposed compensation is set as a constant value, calculated on the above concept in higher prices, but in 1991 the price will be set free by more than a third of all goods and rising commodity prices, no one will compensate. So all this talk about compensation, these meager handouts are intended only to bring down the possible protests of citizens in order to gain time.

Price reform is the main and the main points of the proposal by the Government of concepts that do not hide and authors of the concept. "The most important condition of further economic reforms in the country is the reform of pricing." And the necessity of the act is justified, the proposed concept, as follows:

1. "... for the past 2 years income of the population increased by 105 billion. Rubles, or 23%. is almost equal to their absolute growth over the previous 7 years. "

2. "The consumer market is still blank, imbalances in the economy increases, the discrepancy in the money supply, in cash and cashless transactions, commodity resources accumulate like a snowball."

3. "In our country there is a large government budget deficit and excess money supply over the counter them commodity resources."

4. "... the price does not reflect the real costs of production or supply and demand, nor the level of world prices ... especially deformed food prices. They are two - three times less than its real value. "

The crisis of the economic system does not come today or yesterday, but now it loomed in the present system of government. The government's attempts to overcome the crisis by organizing trade means of production, while maintaining its monopoly position, while maintaining the all-encompassing state-owned and led to imbalances in the economy, a mismatch in the money supply, mediating the exchange of means of subsistence labor, commodity resources. All this happened because in this form of ownership coexist two monetary systems: cash, which mediate the exchange between the state and hired workers, and - non-cash, which are the money of account and are used for calculation of the means of production. Trade in the means of production, without changing property relations, has enabled the management of state enterprises to transfer non-cash money in cash, by assigning them to yourself. Naturally, these cash flowed primarily to the market means of subsistence, creating excess money supply. Why would the leadership of the state enterprise will be for cash to buy the means of production for the state-owned enterprise, when it is possible for themselves and their families to buy apartments, cars, furs, diamonds, etc. Especially most of the means of production and can not buy more, since they continue to be distributed from the center.

Further increased the excess money supply over the goods to confront them as a result of salary increases party workers, the public and bank employees. Power in a hurry to arrange a sweet life, and now explain to the people that need to raise prices because of the people a lot of money, as household income, on average, increased by 23%. But that means on average? The head of the state enterprise and party figure income increased by 2000%, the worker salary remained at the same level as the average for all income grew by 23%. And now the government says the concept and offers to pay the increased operating income, of which he was not.

Government, and ministered to him academics, started a comprehensive reform of state ownership, absolutely no understanding of the laws of its existence, and has quite a few mangled wood. But this is not enough for them. Their ambition and greed knows no bounds. And they do not care about how their activities impact on ordinary citizens. After just a year ago in the economy is clearly observed excessive growth of the money supply, but they do not want to see, and thought to get rid minor amendments. Again, this resulted in restrictions for workers. Resolution of the Council of Ministers for №762 from 21/09/89, "On the procedure and benefits on taxation payroll of state enterprises (associations)," was the first, however, useless attempt by the Government to harmonize the money supply (cash) and the amount of goods . This measure does not improve the situation because they do not put obstacles in the cross-flow counting, non-cash money in cash, does not solve the problem, in fact. Then the Government and decided by a total price increase, to align the amount of money and goods available. The government has once again demonstrated its incompetence and some interest, and again, as we have no time to pay their workers offers muddle, their stupidity, but increase their salaries.

But they want people to not only paid for their mistakes, but also covered the budget deficit. In this case, the concept is not a word that the budget deficit was caused by the excessive appetites of the officials themselves, but because of their thieving.

Insisting on a price increase as the only way to overcome the crisis, the authors of the concept are not trying to prove that for this price increase is not followed by another, and the need to justify the proposed increase is very one-sided. The concept states that the need to raise prices stems from the fact that current prices do not reflect the real costs of production do not reflect supply and demand, the level of world prices. It is evident that the authors has some idea about the economy. But why the concept is said only to raise prices? After all, we exist goods whose prices are significantly higher than costs and world prices. Take, for instance, cars or televisions. Only purpose of government is not to align prices, but simply withdraw cash from the people. Therefore, the price on any goods and will not go down. This is confirmed by the fact that the government is taking care of aligning domestic prices with world market prices, such as "missed" wages that are much lower than in other European countries. Unilateral interpretation, the authors of the concept of objective reality says that the present government is suitable from the standpoint of their own interests, and those interests are opposed to those of the bulk of the workers.

Attitude of the government to the people is clearly seen in the following statement: "Low retail prices for consumer goods, ultimately, determine the low level of wages in the country, undermining incentives to work." As you can see clear to the Government that wages - ie the cost of labor, which, ultimately, depends on the value of the means of subsistence, rather than pay for work, as it hammered people. Therefore, no matter how much work did not work he will always get the value of their labor. And so he had more incentives to work and the government will raise the price of the means of subsistence. Finally, the government is to discover the "greatest" work incentives - hunger and poverty. Now it is the turn of the people to seek incentives for government.

Indeed, the low prices, especially for food products, was allowed to keep wages low and therefore receive substantial profits in industrial production, as well as to confiscate all the rent of the collective farms and state farms. Unprofitable agricultural enterprises, resulting from the curb rising food prices, partially offset by a subsidy from the budget. Now the government has decided to no subsidies to agriculture does not give, and all problems solved by raising prices. The government has proposed to arrange the race ahead of the curve, where the first who will raise the prices, and the profits.

Of course, the government understands that it is rather difficult to get people to agree to the proposed concept, but their consent is not required, they do not want to revolt. That is why a significant place in the concept, as in the old days, given the promises and prospects.





Sverdlovsk

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