National income of the country - creation and consumption
Structure of national income
The level of economic development of the country and the well-being of the population living in its territory is reflected in the system of indicators. Among them, the national income is one of the main. It is calculated in monetary terms. The value of this indicator is the sum of the wages of the working population, industrial and commercial profits, land rent and interest on invested capital. If the miller works at the plant and receives a salary, then it is considered part of the national income. Just like stock dividends that he can own. The profit received by the plant is also taken into account in the total amount.
Features of the calculation
It should be noted that in the planned economy, which operated in the Soviet Union, the system for calculating the basic macroeconomic indicators was fundamentally different from those in other countries.For a long time, products were produced in the country that were not considered as goods and were distributed according to predetermined plans without entering the market. Naturally, national income was calculated using special formulas that are unsuitable for use in market relations. Due to the difference in calculation methods, very often different results are obtained, which compare does not make sense.
National income production
At present, investors, before investing their money in the economy of a particular country, are interested in how national income is created in it. In recent decades, the main components of this income in Russia are formed from the sale of natural resources, and, for example, in China - from the production of computers and other equipment. The maximum value of this indicator shows the US economy. It is important to emphasize that such an indicator as net national income characterizes the efficiency of the manufacturing sector of the economy. And here the primacy is also for the Americans.
The entire system of indicators of economic efficiency is ultimately created in order to assess the quality of life of citizens in a particular country.The national wealth owned by society is spent on ensuring a certain quality of life. As practice shows, in industrially developed countries, people live in more comfortable conditions than in underdeveloped ones. The wealth of the country consists of natural resources and other opportunities for industrial and agricultural production. In turn, all manufactured goods and services are sent to the market for current consumption.
How to ensure the growth of welfare
It is no secret that in order to ensure further progressive growth in the well-being of the population, it is necessary for the national income to grow and increase in volume. The subtlety of the situation lies in the fact that the country needs to provide not only current consumption, but also the conditions for maintaining and developing production potential. For a long time, natural resources — oil, timber, minerals — were simply sold and, as they say, eaten away. In recent years, the government has been pursuing a more rational policy to restore its own production and process raw materials on its territory.Thanks to these measures, the living standards of Russian citizens are gradually rising.