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суббота, 12 февраля 2011 г.

Invincible and uncontrolled inflation

 Inflation in Russia close to 3%
 
Medvedev expects from the government report on the fight against inflation
 
MOSCOW, February 9. Inflation in Russia for the period from 1 to 7 February 2011 was 0,3% since the beginning of the month - 0,3%, from the beginning of the year - 2,7%. Such data now leads the Federal State Statistics Service (Rosstat). Recall that last year (the reporting period) inflation since the beginning of February amounted to 0,2% since the beginning of the year - 1,9%, generally in February - 0,9%. By the end of 2010 inflation in Russia reached 8.8% in 2009 - also 8.8%.
According to the Federal State Statistics Service, for the reporting week rose buckwheat and millet - 2,3% and 2% respectively, sunflower oil, margarine, beef, bread and flour - on 0,6-1,1%. In fruit and vegetable prices increased on average 1.2%. Gasoline became more expensive by 0.5%, diesel fuel - by 0.8%. We add that the cost of travel in the bus and city municipal buses has increased by 1,4% and 0,9% respectively, the fee for water and wastewater - 0,4%, for housing in the houses of the state and municipal housing stock - at 0.3 %.
 
Invincible and uncontrolled inflation After the price increase in January-February overcome the bar of 4,1%, Alexei Kudrin acknowledged that keeping inflation within the budgetary framework will not succeed. "Today - writes Helen Lashkina in" Rossiyskaya Gazeta "- the cabinet to hold an urgent attempt to find answers to the questions of virtually every Russian: why is the country's rising prices? Irrepressible inflation for several months this year had already spoil not only a beatific picture economic development, but, judging by the strong commitment of Prime Minister Mikhail Fradkov's career to some officials of his cabinet. " That's up to any serious steps (the prime minister threatened the dismissal of certain officials) can bring this unmanageable and invincible inflation. And at a recent meeting of the government dealt with exclusively on fighting inflation, and how on this front has caused a stir every member of the cabinet. The need for a more serious struggle with rising commodity prices last week, said Vladimir Putin - he pointed out that the government can not cope with the execution itself is designed disincentives for inflation. Each year we learn about the ambitious plans of the government to reduce inflation, which it sets itself. But at the end of the year again we learn that within the scope never managed to squeeze in spite of the docile statistics. To all appearances, is no exception and the current year. You can certainly do so, as advised by the writer and satirist Viktor Koklyushkin: "In their calculations, we have always (since 1917) are wrong ... A Fradkov personally I would advise not to worry, because he, and so the kind of person who had forgotten the keys and standing before the door closed. He would be useful to do sports. And if the president we have skiing, then the prime minister would come up stokletochnye checkers. In conclusion, it is proposed that the word "inflation" indecent and in his speech no longer use. " That's just, unfortunately, the withdrawal from the vocabulary word "inflation" will not eliminate the inflation itself. Therefore, even many times I try to draw the attention of visitors at the discussion that took place around the inflation rate, and maybe someone sick, but what is written about inflation Elena Shishkunova in the newspaper Izvestia, it should be noted. "Inflation, - informs us Shishkunova - this year will exceed the target level. Prices in Russia are growing because people do not believe in stability and a lot of spending." That is why prices are rising, and the ruble devalued. And we naively thought that this was the result of government policies and the Ministry of Finance, they are doing in the interests of certain business community and the bureaucracy. As you can see, today, due to the lack of scientific political economy concepts dominate concepts such as: a lot, trust, etc. Even more incredible understanding of economic laws demonstrates the readers of Gazeta Nicholas Vardul: "The government is going to reveal a miracle: to raise economic growth, lower inflation and implement national projects. The miracle is that to solve these problems simultaneously is even theoretically impossible." As we see, Nicholas Vardul is also an expert knowledge of economic theories. He was echoed by Maxim Sokolov in the newspaper Izvestia: "Justice, however, requires recognition that the last call of Mikhail Fradkov was not the best. Grasp the wake of the president to demand from Alexei Kudrin and Gref control inflation figures - and no more per thousand, the Prime Minister came into conflict with their own wishes about the same in order to raise the rate of economic growth, reduce the tax burden. And also realize large national projects. If charging Alexei Kudrin only thing he knows, that is, fight against inflation by pumping full of money from the economy, then what are the national projects, growth and tax cuts? " Nicholas Vardul and Maxim Sokolov, "firmly" acquired, probably due to "good" teachers, that economic growth is possible only in conditions of inflation and confidently flaunt it. But if they are a bit to reflect on how the inflation of the immediate producer, it could very well see that inflation does not only contribute to economic growth in Russia, but also inhibits it. Inflationary pressures develop under the pressure of two factors - it is not related to going to the non-productive sphere, cash infusion from the government, and higher prices for goods so-called natural monopolies. And in both cases involved official. In the first case of this government, the finance ministry and central bank officials, while the second, officials of various levels of government participating in the tariff commission, and taking the decision to raise these or other tariffs. This clearly implies that the development of inflation benefit the state and the owners of the monopolies. After all, who urges on these processes, that they are profitable. This phenomenon does not belong to actions that increase the competitiveness of our economy, since all producers grow up production costs, and the lion's share of the profit goes into the pockets of monopolists. On this occasion, is not even distributed. We now turn to the state and see what the state gets from the depreciation of the ruble? First, we must not forget that the state involved in the existing monopolies and therefore officials involved in the division of profits of the monopolies. Secondly, as a result of depreciation in the state a so-called inflationary boost, which officials can order at their discretion, including spend it on consolidating its power. Budget surplus touted by them as an achievement, as a result of strong economic activity, without understanding, and due to which there is currently too much money. Due to the development of production, due to the growth of labor productivity, or due to bleeding of our economy. Inflation boost is formed due to the fact that low payment approved article by article, in the form of lump sum and taxes are collected as a percentage of profit and turnover, and because of the time gap between when a throw-laundering and until the price equalization. If we consider it on a physical product, population, resulting in loss of purchasing power of pensions, allowances, stipends, salaries will be able to purchase only part of the goods that it consumes up to this, the other part became the property of the state, and it can spend its as so desired. In addition to the official, in the sphere of economic relations, we have representatives of big business, which specializes in trading of raw materials on international markets or products of primary processing, business-oriented to the domestic market, small and medium business and hired workers. From all we have listed the agents of production to benefit from inflation receive state and big business, trading in world markets. Commodity monopolies benefit from the depreciation of the ruble, as prepared for the same amount of products sold on the world market, more rubles, which they pay, within the country, with equipment suppliers and workers at the old prices. The primary benefit of these companies comes from the constant backlog of wages from rising inflation. A state will receive additional profits by cutting off part of the profits of commodity tycoons. That's all, who benefits from inflation. So where is the economy arising from inflation, about which so much writing. Inflation, which would produce the oligarchs and bureaucrats excessive profits, does not contribute to the economic development of our country, as well, "baked" Kudrin, Gref, and their ilk. Now we dwell on how inflation is reflected in those not privy to power, to the higher bureaucracy and the trade in raw materials - for workers and employers. Whether inflation is developing the economy in this part? Not to mention the fact that inflation reduces the standard of living of the majority, it is also detrimental effect on economic development in general. As a result of the fall in real purchasing power of the population shrinking market for goods of mass demand, the illusion of over-production of goods and services, forcing manufacturers to turn off or suspend production. And although the cost of hired labor and falls, the entrepreneur loses much more than wins because he is not only the rate of profit, but also mass. He interesting to have 5% from 1000, less than 10% of one hundred, after 50 rubles more than 10. Second, no less disastrous consequences of inflation - a rise in money lending, which naturally hinders the possibility of developing small and medium-sized businesses because they do not in any case you can make a profit, giving the opportunity to pay the interest and inflation. Do not develop not only business loans, but do not crediting, mortgage, since wages are not keeping up with inflation. Third, in escalating inflation, employers refuse to invest for the long payback periods, which restrains the retooling and development of productivity. Fourth, the steady decline in labor costs, that is, real wages in manufacturing, holding back technological development, which is the basis of competitiveness of any economy. Why would the owner of the plant will implement the mechanization of the production or use of industrial robots, where he can always find the labor market, cheap and sufficiently skilled workers? This policy of the government, which holds it in alliance with the oligarchs, aimed at unwinding of inflation and the increase of the oligarchs, leading the country to a standstill, the degradation and economic backwardness, and not to economic prosperity, as we try to instill a variety of columnists. Fortunately, there are the journalists and those who honestly speaks about inflation, as Yevgeny Gontmakher, who openly wrote that inflation - is primarily a tax on the poor, and thus the victory over her should not happen in the economic sphere, and in political. "Inflation - the worst social disease - Gontmakher wrote. Because those 10.9 per cent inflation, according to official statistics, last year for the poor of our citizens have grown to much higher levels. According to our calculations, for them last year inflation was at least 15 percent. First of all, because the poor get those products, which in the first place and rising prices ... inflation further increased the gulf that exists in Russia between rich and poor. But the reduction of this difference, reducing the number of people living below the poverty line, announced one of the priorities of the social policy of the government. Therefore, it can be argued that fighting inflation - is not so much economic challenge as political. " It can only add that this political problem can be solved only by the citizens themselves, not relying on the government. Taking into account the fact that big business does not sleep. Natural monopolies again demanded his gain. And trades natural monopolies, which began with the officials about the increase in tariffs, can succeed. Yesterday the head of the Federal Tariff Service Novikov said that by June the ultimate level of tariffs in respect of Gazprom, RAO UES and the Russian Railways will be updated. This is not the first statement of a senior official about the possibility of revising the tariff. The other day it did not rule out the Deputy Minister of Economic Development and Trade, Alexander Belousov. So all the talk about the fight against inflation will likely remain so, and talk.
Vitaly Glukhov
   
16.03.2006, the

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