Real income of the population and state policy of regulation of the consumer market
According to the existing tradition, to assess the role of moneyincome in the formation of the consumption market is necessary not only by comparing the indicators of income growth and retail turnover, noting the realized market potential in terms of turnover, and the possibility of developing the consumer market in terms of money income, but also how real income relates to growth and production volumes and productivity of labor.
Real disposable income is not directly related toonly with the sphere of their realization, but first of all with the sphere of its formation. The main share in the amount of money incomes is paid by wages, which forms the aggregate annual income and which is the price of labor as a factor of production. Therefore, the growth of wages and, as a consequence, real income, should be associated with an increase in output.
To study this relationship, the volume changesconsumer goods and monetary income can use the well-known formula proposed in any textbook on economics. According to it, it is logical to assume that with the effective functioning of the national economy, production growth should outpace the growth of incomes and only thus influence the real income. However, this is not always observed, and does not always depend on the state's strategy in the area of adjusting the consumer market
If the lead ratio is below one, then bythe nature of its manifestation in the consumer market can be judged that the state pursues a policy of "expensive money" when the volume of production is tied to the price of one of the most important factors of production (labor). If it is more than one, the state pursues a policy of "cheap money", mainly aimed at stimulating consumption. And it can be considered effective if it contributes to the revitalization of the domestic consumer market: the growth of production and sale of domestic consumer goods, the reduction of commodity stocks.
If a country or region has a policy"Expensive money" in order to stabilize the economy and slow the rate of inflation, this, naturally, reduced the real income of residents. As a rule, such a policy is accompanied by an understated indicator of commodity stocks and low activity of the consumer market. Such a regime is maintained in order to saturate the market with consumer goods and prevent the growth of incomes from outstripping the corresponding growth in production rates, which would inevitably provoke inflation and, in turn, again lead to the fact that real income would begin to fall.
When the rate of income growth is practicallyis aligned with the growth rates of production and labor productivity, which in general makes the regional market quite stable, but not balanced enough to match the supply to the size of demand, as the size of commodity stocks in retail trade increases sharply, and the market lives in a state of "waiting" increase of activity of consumers. For example, such a situation can arise when a policy of "cheap money" was pursued in the country or region, which can be linked to the fact that in the previous year the production of mass consumption goods increased significantly, but not all of the goods produced were sold. Therefore, the outstripping growth of incomes in comparison with the growth in the production of goods was aimed at stimulating consumption and, as a consequence, reducing the size of commodity stocks.
Stable state of the consumer marketis always characterized not so much by the increase in incomes, turnover and production of goods, as by the optimization of goods in the region and the opportunity to consider such an impact of the result obtained on the state of commodity stocks in the sphere of circulation. Thus, by comparing the indicators of the lead ratio with the value of commodity stocks in retail trade, one can estimate the result of the state policy in the field of market regulation through the mechanism of formation and realization of incomes of the population.
