General problems of all economic systems

In any moment of time, in any economic system, in order to live, a person must have food, clothing, shoes, other tangible and intangible goods. But these benefits must be produced. Industrial relations form the basis of the economic organization of society. Consumption of goods - the process of using production results to meet needs. The most important task and goal of the development of any economic system is to satisfy the needs of society.

The vital activity of society is based on economic, political, legal, social, ethical and other relations arising between people. Economic science studies the economic relations of human society that arise between individuals, groups, parties, countries. Economic relations are certain relations and relations into which, regardless of the will and consciousness, people enter in the process of social production. In economic relations, one should distinguish between production, socio-economic (property) and organizational-economic relations.

Socio-economic relations are formed between social classes, social groups, individual collectives and members of society. The decisive role in these relations is played by the ownership of the means of production. Organizational and economic relations arise because social production, distribution and exchange are impossible without a definite organization. Organizational and economic relations, reflecting the forms of organizational ties, accompany any joint activity of workers. This, for example, the division of labor, its specialization and co-operation. The social division of labor is the isolation of individual types of labor activity. The first stage of the social division of labor was the separation of livestock from agriculture. A prerequisite for the social division of labor is the presence of a certain amount and quality of economic resources and the peculiarities of their combination that provide greater or lesser efficiency in the use of these resources. The division of labor in modern production requires a narrow specialization of workers in separate production operations. Specialization is a form of division of labor in which an economic entity concentrates its production efforts on one or a limited number of activities. The flip side of the social division of labor is its cooperation. Labor cooperation - based on the division of labor, a stable exchange between economic entities of products produced by them with the greatest economic efficiency.

Industrial relations form the basis of the economic organization of society. Industrial relations - the interaction of people among themselves in the process of their economic activity. Production is the basis of the economy, the basis of the existence of the entire human society. Considering production as a process, economic theory distinguishes the following stages in it: production, distribution, exchange and consumption. Production - the creation of a product necessary for the existence and development of man. It is clear that before distributing, exchanging and consuming something, this “something” must be produced. Distribution - the determination of the share and volume of the product entering into consumption by participants of economic activity. Distinguish between distribution in the narrow sense (distribution of the product) and in the broad sense (distribution of the conditions and factors of production). Distribution in the broad sense relies on the division of labor and the allocation of economic resources for different types of economic activity.

Distribution in the narrow sense implies the determination of the share of each participant in economic relations in the created wealth. The size of the share depends on the right of ownership and on the volume of production. Exchange is the stage of movement of a social product at which manufactured products are delivered to economic entities. Since production is carried out on the basis of the division of labor and specialization, exchange becomes a way of obtaining the necessary products by transferring the results of their labor for them. Money is the intermediary in such an exchange.

Consumption is the process of using production results to meet needs. This is the final stage of product movement. As a result of consumption, the created goods disappear, after which they should be re-produced, that is, reproduced. By purpose, consumption is divided into personal, that is, aimed at meeting the individual needs of people, and production, aimed at using the product to resume and expand the process of production of material goods.

It should be noted that production is a social process, as it is carried out not by isolated economic entities, but by society. In addition, production is an ongoing process. Society cannot stop consuming, which means that a constant repetition of production, distribution, exchange and consumption, or reproduction is inevitable. Moreover, all four phases are implemented simultaneously. The continuity of the production process and its repeatability characterize social reproduction. Social reproduction is the process of production, distribution, exchange and consumption of material goods and services that is constantly repeating in society. Schematically, the reproduction process is represented in the figure.

Public reproduction can be carried out in simple, expanded and narrowed versions. Simple reproduction takes place if the volume of output is unchanged during each turn. Moreover, it is believed that both the quantity and quality of the economic resources used in the process of social production do not change. Enhanced reproduction suggests that the volume of material goods produced is constantly growing, increasing from year to year. The condition for expanded reproduction is to increase the quantity and quality of economic resources. Reduced reproduction is a reduction in production at each subsequent stage of the process of social reproduction.