Strategy For A Happy Life

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Formation is higher than the considered proportion between accumulation and consumption more specifically reveals in the analysis of distribution of investments between separate sectors of economy, in particular, between those economic spheres which economic activity is directly connected with satisfaction personal needs of people, and what work for production, that is for reproduction of investment resources (means of productions. In this regard research of such structure of investments which characterizes their use in the main production, production and social infrastructures is essential.

Therefore to speak irrespectively about volume, high or low norm of accumulation - it is inadmissible. The speech has to go about volume, how this level of accumulation is provided with scientific and technical innovations and as far as, in turn, this accumulation promotes further development of scientific and technical revolution, introduction of its results in production and to increase in volumes and qualities of consumption.

Calculations testify that costs of actions for economy of resources in production, are 3-5 times less now, than expenses on increase in production of resources. Thus and efficiency of such expenses steadily increases. Due to the rise in price of production of many types of raw materials and a tendency to absolute reduction of volumes of production practically of all types of resources also economic borders of carrying out effective actions for economy of material resources extend.

At the same time it is necessary to notice rather high capital intensity of production in branches of transport and communication and rather low level of this indicator in trade, logistics and preparations. These last branches, on the level of efficiency of investments adjoin agriculture and construction, while the first group of branches (transport and communication) - the industry more.

Treat the most general aspects of structure of a social production functional and branch. The first includes such important elements as tools and objects of the labor, the worker as the main productive force of society, their interaction and tendencies of development of each of these elements, and also such links, as actually production or the main production, production and social infrastructures.

In similar conditions the fundamental contradiction between accumulation and consumption is not allowed: accumulation in the present is not realized by the corresponding increase in consumption in the future. This future is more right is extremely remote.

"When the economy starts experiencing difficulties, producers often cease to acquire more modern equipment and to build new plants. At such environment simply there is no sense to increase stocks of investment goods. In all cases the firm still can use cash capacities and buildings, and they are enough with interest. During the favorable periods of means of production are usually replaced to their wear-out. However, when there comes recession, firms repair the outdated equipment and put it on use. Therefore investments into means of production are sharply reduced. It is possible that some firms having excess capacities do not even seek for compensation of all capital which they at the moment consume. In that case their pure capital investments can become negative size".1

The impressive part of a gain of production of initial materials and semi-products "is eaten" by their increasing losses in other links of a national economy acting as consumers of this production. In these conditions, investment into the productions reducing material capacity on the increasing number of positions becomes economically much more favorable, than further investments in branch extensively increasing volumes of their production.

Here it is necessary to notice that the high norm of accumulation is characteristic for effective developed economy. As it is clear that at high capital productivity it is inexpedient to reduce norm of production accumulation. In the developed countries the norm of accumulation keeps at the high level, higher, than in developing countries, for example. As a result, there and the level of personal consumption is at very high level.