Toolkit Theory of Suggestions. The theory of economics offers. The total proposal is the main factor of state regulation. La fiber curve. Economy suggestions. Theoretical foundations concept

13.1. Economic offer theory

Deficiencies of state budgets, inflation growth, an increase in unemployment and other negative consequences economic Policybased on the recommendations of the simplified Keynesian concept, as well as the shocks of the proposals associated with the oil crisis of the 1970s, contributed to the coming to power in western countriesah politicians (R. Reagan, M. Tatcher), whose actions of the situation were developed on the basis of the recommendations of economists of the neoclassical direction. This turn to the neoclassical paradigm in the literature was called neoclassical counter-revolution. Significant contribution to this was made by the following concepts: economic theory of suggestions, modern monetarism and the theory of rational expectations. Consider the basic provisions of each of the listed flows.

The economic theory of the sentence was formed in the 70s. Xx in. The efforts of American economists: A. Laf-Fera, M. Feldstine, M. Boskina, P. Roberts, M. Evans and government representatives (senators and US congressmen). It is popularized by journalists who adhere to neoconservative views. In the development and distribution of the main ideas of this theory, a large role belongs to the American Institute of Entrepreneurship, which, according to I. Stone, is the "Washington factory of thought, which can be considered the leading source of conservative ideas."

The authors of the economic theory of proposals are relying on the ideas of the Neoavustian school (F. Hayek), the theory of limiting productivity of production factors (J. Clark and F. Weekestids) and modern monetarism (M. Friedman). This course had a noticeable impact on the formation of the US administration's economic policy during the presidency of R. Reagan, Governments M. Tetcher in the UK and Christian Democrats in Germany. The recommendations of the developers of the economy proposals were one of the sources of "Rei-Gonomics" and "Tetcherism".

The popularity of the economic theory of the economy is due to the fact that her supporters managed to give enough convincing answers to questions raised by economic practice, as well as to develop and propose constructive options for solving many relevant in the 1970s. Problems of the economy of industrialized countries of the West. We are talking about stagnation: the simultaneous increase in negative trends in the field of production - a protracted recession, accompanied by the growth of unemployment, and losing control over inflation. In this situation, showed explicit signs of the crisis of the system state regulation The economy based on the principles of Keynesianship, in particular the inability to effectively help the effective development of the achievements of the technological stage of the scientific and technical revolution. Neoconservatives gave not only a realistic explanation of these phenomena, they substantiated recommendations relating to the restructuring of economic policy, sharply putting the question of the need for a serious transformation of the entire economic mechanism of the modern economy.

The theory of economics offers is not a holistic, completed concept, rather this set of ideas and econometric calculations, on the basis of which practical recommendations and suggestions are formulated. The central point of this ideological conglomerate is the statement that allocation and effective use Resources are crucial for national production growth both in short and long-term periods. In other words, supporters of the economy proposals promote the idea of \u200b\u200bthe need to transfer fundamental attention from research of aggregate demand, like Keynesian-Tsev or monetarists, to study the aggregate proposal, and therefore, the transition to long-term regulation of production factors.

Almost all sections of the theory of the economy of the proposal are built on the same conceptual scheme that can be called "approach from the opposite". First, the mechanisms of occurrence are investigated economic problems (high unemployment, uncontrollable inflation, low reproduction dynamics, etc.), and the emphasis is on the identification of forces that deform market processes and reduce the efficiency of the use of factors of production (for example, the incorrect economic policy of the government, aggressive activities of trade unions and so on .). An analysis of such mechanisms is proof, with the involvement of the results of extensive econometric studies. It is then developed proposals to eliminate the identified obstacles that have a negative impact on economic processes, such as the reorganization of the state regulation system in such a way as to more fully disclose the market potential of the economy, increase the efficiency of production, to achieve a satisfactory solution to acute national issues.

In theoretical terms, the economy offers is based on the provisions of the standard neoclassical theory: the stability of preferences, a model of rational selection, equilibrium interaction schemes. It transfers the principles of the functioning of a separate subject: a consumer or firm to the macro level. Consequently, at the level of the economy as a whole, there can be no unoccupied resources and the level of production depends on the supply of capital and labor. With such an interpretation of capital - this is primarily the problem of savings, the solution of which depends on the choice of people between consumption in a temporary context; The proposal of labor is the problem of choosing between labor and leisure. The impact of state policy to choose from between the above alternatives was the subject of close attention of supporters of economic theory of the proposal.

Its authors believe that in the past, the growth of the influence of the state caused an increase in the tax burden of both in absolute and relative terms (in comparison with the value of national income), which led to a distortion of a free market mechanism. The logic of reasoning is such. Most of the taxes are first transformed into production costs, and then shifted on the consumer in the form of higher prices. Thus, taxes, according to supporters of the economy of the proposal, unlike Keynesians who considered them an anti-inflationary tool, cause acceleration of cost inflation, that is, the "wedge" is driven between the amount of costs and the price of goods. As state intervention grows in economic processes, this tax wedge increases, causing reducing the aggregate supply.

High taxes lead to other negative consequences. Thus, a developed system of state social security, funded from the budget, which is formed mainly at the expense of tax revenues, according to supporters of the economy of the proposal, is considered the main factor in the growth of unemployment.

First, it contributes to the weakening of job search incentives among not busy population, leading to deformation of the labor market and an increase in the natural norm of unemployment.

Secondly, the implementation of various state social programs leads to an increase in the burden on the budget, which requires more high rates taxation. Tax growth by wages means a decrease in real incomes of the employed population, which reduces the attractiveness of labor compared to leisure, since the effect of replacement is greater than the income effect. This is the reason for increasing the number of unemployed, voluntarily left the workplace due to dissatisfaction with their real incomes. Thus, the distribution of resources becomes non-optimal, in particular, the proposal of labor is artificially understood. It follows from this that high taxes strengthen the negative effect of unemployment benefits and other forms of social security.

Third, government spending on social goals contribute to a change in the relationship between consumed and saved parts cash income In favor of the first. On the one hand, the choice between today's and future consumption is carried out in a situation of distortion by taxes of relative prices for present and future benefits. On the other hand, the guarantee of financial and other assistance from the state in the retirement age also contributes to an increase in the share of current consumption. The result of this is to reduce the share of savings in cumulative income, reducing the amount of credit resources and sources of accumulation, which causes a slowdown in economic growth and negatively affects employment.

Fourth, the conduct of anticyclic policies by stimulating the aggregate demand, as the Keynesians offer, can lead to a budget deficit, which categorically reject supporters of the economy of the proposal. They advise the state to completely eliminate the budget channel unforeseen inflation, Change the offer of money without resorting to the deficit. They advocate independent budget policies independent of the monetary.

Proponents of the economy proposals are thoroughly understood in the mechanism of the negative impact of the budget deficit on the economy. The coating of the deficit by government securities leads to negative phenomena in the financial markets. The state, trying to prevent the acceleration of inflation rates, places the bulk of their debt obligations on them, and thereby turns into a serious competitor for private firms. Manipulating a percentage rate securitiesBy installing volumes state credit and its maturity, it takes off the private sector credit resources that could become production investments. However, these resources are redistributed to the sphere of state consumption, mainly non-production, which identically displays private entrepreneurship from the credit resources market. Budget deficits contribute to the growth of private demand for money, an increase in interest rates in credit institutions, which leads to a narrowing and financial, and material base of private production accumulation, as well as the rise in the cost of the loan, reduces the level of investment.

Theoretical and econometric analysis of this phenomenon began with the study of the American economist R. Barrow, who calls it the effect of providing private demand for credit resources by state. Eliminate the negative pressure of the deficit on the dynamics of reproduction is possible by balancing the budget, thereby stopping the intervention of the state on financial markets. Then the elimination of the deficit will be equivalent to the neutralization of the budget policy, which, as well as cash in the conditions of expected inflation, is a guarantee of free operation market system.

Proponents of the economy proposals declare that excessive legal regulation of economic processes by the state also has a detrimental effect on labor productivity and costs. They consider two forms:

1) the structural state regulation of individual industries, which contributes to the emergence of legal monopolies protected by law from competition, and leads to a decrease in the effectiveness of these firms, in particular the increase in production costs;

2) National regulation associated with the adoption of a package of regulations governing the activities of industrial organizations in the field of environmental pollution, product quality, labor protection and security, equal access to various specialties, which also increased the cost of carrying out entrepreneurial activities.

Having revealed pain points of the current state of the economy, the authors of the theory of the proposal have developed its own version of the draft reform of state regulation of the economy, an alternative to the Keynesian doctrine and the policy of stimulating demand. From the state, they demanded actions aimed at disclosing the market potential of the economy, creating conditions for free entrepreneurship. Significant reduction in size state budget (and his shares in national income) due to cutting expenses - one of the provisions of the reform program of the state regulation system, the main goal is to pick up from the state financial resourcesthat allow him without reason to interfere with economic processes.

The authors of the theory of proposals do not share the hopes of monetarists on the policy of long-term monetary regulation, since the implementation of the monetary rule does not ensure the free functioning of the market mechanism, which is broken by imperfection tax system. Such regulation will be most effective only in combination with the new tax policy. This is indicated by the American economist T. Roth: "... the engine of non-inflationary economic growth is the corresponding theories of the proposal tax incentives, supported by a decrease in the growth rate cash».

The central place in the radical reform offered by supporters of the economy of the proposal is given by the tax system. They consider it necessary to carry out a significant reduction in maximum tax rates, which will allow to mobilize the potential market economy. The decline in tax rates should be differentiated, proportional to its limit performance. To a greater extent, it should touch on those types of taxes that give the maximum limit return from the point of view of the growth of capital accumulation and employment stimulation. First of all it refers to taxes on investment income and progressive scale income tax. The decline in taxes, according to supporters of the economy of the proposal, revitalizes business activity and will help solve many problems of the modern economy.

The theoretical substantiation of the proposed tax reform is the Laffer effect. A. Laffer argued that the long-term consequence of reducing tax rates will not be an increase in budget deficit, but its reduction, which will help stabilize the inflationary process. He supported his conclusion with a graphic illustration that was named curve Laffer. (Fig. 13.1).

Introduction

The essence of the concept of supporters of the economy of the proposal is to transfer efforts to manage the demand for stimulating the aggregate supply, the intensification of production and employment. The name "Suggestion" name comes from the main idea of \u200b\u200bthe authors of the concept - to stimulate the supply of capital and labor. It contains the rationale for the system of practical recommendations in the field of economic policy, primarily the tax. According to representatives of this concept, the market not only represents the most effective way to organize the economy, but is the only normal, naturally established system for the exchange of economic activities.

Like monetarists, supporters of the economy offer advocate for liberal economy management ways. They criticize the methods of direct, direct regulation by the state. And if you still have to resort to regulation, it is considered as inevitable evil, reduce efficiency and binding the initiative and energy of manufacturers. The views of the representatives of this school on the role of the state are very similar to the position of the Austro-American economist Frederick von Hayek (1899-1992), persistently preaching free market pricing.

The economy offers advocate for reducing taxes in order to stimulate investment. It is proposed to abandon the progressive tax system (high-income recipients are leaders in updating production and increase productivity), reduce tax rates For entrepreneurship, wages and dividends. Tax reducing will increase the income and savings of entrepreneurs will reduce the level interest rateAs a result, accumulation and investment will grow. For wage recipients, tax reducing will increase attractiveness additional work and additional earnings will increase incentives for work, the supply of labor will increase.

In his arguments, the theorist's economy offers are based on the so-called Laffer curve. Its meaning is that the decline in marginal rates and in general taxes has a powerful stimulating effect on production. When reducing rates, the tax base ultimately increases: more products are manufactured, then taxes are going to more. This happens not immediately. But in theory, the expansion of the tax base is capable of compensating for losses caused by a decrease in tax rates. As you know, the decline in taxes appeared composite element Reagan programs.

In the development and distribution of the theory, a large role belongs to the American Institute of Entrepreneurship, which, according to I. Stone, "the Washington factory of thought, which, perhaps, can be considered a leading source of conservative ideas."

The theory of economics offers is fundamental theory that belongs to the most active wing of conservative economists . She grew out of a mixture of American economic romanticism, pragmatism and political demagogy. It plays an important role in determining the economic policy of the US administration.

At the origins of the theory stood practical figures (J. Kemp politicians, J. Russeldorg, U.Rost, journalists: J. Vinisci, J.Gildol, I. Kristol), theoretics - Professor A. Laffer, R. Mandel. Empirical studies are represented by professors M. Feldstine, M. Boskin, etc.

Representatives of the economy proposals are supporters of ideas of economic liberalism. In theoretical terms, the concept is characterized by the application of the principles of a microeconomic approach to the analysis of such macroeconomic problems as capital accumulation and public Finance. This focuses on taxes and tax Policy economic activity, adjustment of the regulatory system, displacement of objectives and priorities of economic policy and modifying methods for achieving these goals. Representatives of the economy of proposals require the elimination of "harmful" forms of regulation, reducing the regulatory and regulatory activities of the state, as well as strengthening the market basics of entrepreneurship.

The economic prosperity of the Society Theoretics of the economy offers are associated with the protection of private ownership and with improving the price mechanism, with the creation of an additional system for increasing the competitiveness of a market economy, restructuring a system of socio-economic and political relations in accordance with the interests of entrepreneurship.

But theorists do not seek to completely eliminate the state from the economy. They are talking about its transformation, creating "states social insurance"The goal of which is to improve the provision of all Americans, the creation of a fair socio-economic organization that opens up space for the implementation of individual aspirations and is based on the principle of" equal opportunities ", which makes it possible to ensure the conditions for the effective functioning of the economy.

At the same time, the ideologues of the economy proposals believe that the condition necessary for the prosperity of the Company is to ensure wealth, the right of unlimited ownership of property, entrepreneurial activity. Therefore, recognizing that the mass of people lives in poverty, they advocate an increase in the aggregate wealth of society through capital accumulation, for promoting rich people in the implementation of their aspirations, for maintaining a market management system, a free price system, which is a mechanism that transmits the information necessary for Coordination economic activity; creating incentives for its implementation, for the distribution of labor and capital; Providing universal abundance, spreading and lower classes.

In this regard, one of the urgent tasks, according to the theoreticals of the economy of the proposal, is the elimination of externalities for the market system of hosofing the free movement of prices related mainly to the tax system. In their opinion, it causes undesirable interference in the market mechanism.

Socio-economic prerequisites for revising in the 80s of the taxation system were strong negative consequences high level tax rates. First, high taxes necessitated the effect of accelerating cost inflation. This is due to the fact that most taxes in time are transformed into the costs of entrepreneurs and shifted on consumers in the form of higher prices. Rising prices, in turn, causes a reduction in production volumes, shifting the curve of the cumulative proposal to the left.

Secondly, high taxes, led to the growth of production costs and inflation, led to a decrease in production efficiency, reducing remuneration, received by workers and entrepreneurs after paying taxes. This, in turn, was reflected in the introduction of innovations and investment sizes.

Thirdly, the growth of taxes caused inflationary "income erosion" in the mid-70s - early 80s. The consequence of inflation was an increase in tax burden. In the early 60s, income of about 90% of taxpayers were within two or three lower ratesAnd the high degree of progression was applied to 5% of the richest population. Inflation and income growth during the 60-70s led to the fact that the growing rates of income tax, aimed at high-income recipients, by the end of the 70s began to be applied to the wide segments of medium incomes. In addition, tax breaks were depreciated: taxable minimum, standardized discounts, etc.

The theorists of the economy proposals carry out the revision of the tax regulatory model, building their reasoning in the Regulations on the need to ensure changes in the aggregate proposal of production factors.

The main prerequisite for changes in the aggregate proposal are savings, the increase of which causes a reduction in consumer demand, expanding the size of the accumulation and investment. Stimulating theoretics savings are associated with the impact on the appropriate relative "price", which reflects the attractiveness of consumption compared to the savings. As a result, the central moment becomes the impact on the size of income actors actually received by investors, on savings through changes in tax rates. This is how the main way of influence on the distribution of consumption in time, as well as income to the saved and consumable parts is determined.

Thus, representatives of the economy of the proposal, as well as Keynesians, consider fiscal policy A powerful means of exposure to the economy. But, if for Keynesians, it is a way of direct impact on cumulative demand and the volume of production with the secondary effect on the price structure, then for representatives of the economy of the proposal of the budget and tax policy - this means to change "relative prices" and through them to influence the behavior of the subjects, as a result of which the production and total income changes.

These provisions allowed the theoreticals of the economy proposals to substantiate the conclusion that one of the conditions that ensure the growth of savings and expansion investment activity, there is a low level of taxes. For theoretical evidence of the stimulating impact of low tax rates, they used the budget concept of A. Laffer. In his opinion, the driving force of economic growth is the interest of economic activity-oriented economic agents. If this activity is beneficial to them, then reproduction will be carried out intensive pace. If the successful functioning of the market will be faced with increasing discrimination in the form of higher and progressive taxesT. economic activity will fall.

As a result of the study of the material of the head, the student will be:

know

• The main provisions of the economic theory of the proposal;
• The story of its occurrence and main representatives;
• its place in the development of economic theory and its role in the formation of the economic policy of Western countries in the 1970s;

be able to

• analyze the positive and negative aspects of the state intervention in the economy from different points of view;
• evaluate economic effects tax policy pursued by the state;
• trace the impact of the budget deficit at the price level and business climate in the country;

own

• The main concepts put forward by the economic theory of the proposal;
• The logic of the theory in criticism of both Keynesian politics and as a whole "serious state".

Prerequisites for economic theory of suggestions

Economic proposal theory ( supply-sideeconomics) Formed in the late 70s. XX century And represents one of the currents of neoconservative economic thought.

Main representatives economic theory of sentence can be called M. Feldstaina and A. Laffer.. The development of this school was largely promoted by the Canadian economist and a politician Robert Mandel (Robert. Mundell, r. 1932, the laureate of the Nobel Prize in the 1999 economy).

Also, this school includes an American economist R. Barrow (R. Barro.), journalist J. Vanisci (J.. Wanniski.), economist V. Kanto (V. Canto.).

This is difficult to call the school in the strict sense of the word, since it does not have a leader, a single theoretical position, in many questions close to monetarism. A. Laffer The book called it "no more than a new label for standard neoclassical economic theory." In addition, many supporters of this direction, the so-called seplaisiders There were rather practitioners rather than theoretics, and most of them written by them is journalistic. It is not surprising if we take into account that the emergence of economic theory of the proposal is closely related to the political and economic processes occurring in the USA in the 70s - 80s. XX century

It is important to remember!

Wears a pronounced anti -yensian character. If a keynesian theory proceeds from the need to intensify the demand in the economy and therefore it is often called economic theory of demand (demand- Side Economics), the economic theory of proposals, as seen from its name, considers the main economic task to stimulate the proposal.

This position was due to the economic reality of the 1970s. For the two preceding decades, the US economy, as well as Western European countries, experienced a rapid economic growth. The production boom was accompanied by intensive incomes of incomes of all segments of the population. The capacious was formed consumer market. The level and quality of demand from the Company increased. This was also promoted by scientific and technical progress, which caused a wave of demand for new equipment from the industry and on new products from consumers.

Under these conditions, the problem of stimulating efficient demand has ceased to be relevant. At the same time, observed in the 1970s. The low level of production and the growth of unemployment, accompanied by increasing inflation, were, from the point of view of supporters of economic theory of proposals, evidence of a serious deterioration in business climate and reducing the level of entrepreneurial activity. Seplaisiders believed that this is a consequence of the application of Keynesian politics, which was accompanied by an increase in government spending and budget deficit. Such a policy led to the emergence of inflation expectations in the economy and spurred rise in prices. At the same time, a tax burden has increased significantly, which always negatively affects business activity. At the end of all, the active regulation of the economy has strengthened uncertainty, making entrepreneurial activities and raising risks.

The economic program of the school itself is brightly pronounced liberal character. The main point of it is to reduce the share of the state in the economy and, in the first place, a decrease in the tax burden, assigned to entrepreneurs and social groups High income.

Historical excursion

The formation of this program is closely associated with the political career of the American President Ronald Reagan, starting with his entry into the post of Governor of California. In the 1970s. In this state there was a wide social movement, supported by economists (in particular, A. Laffer), which opposed high taxes. R. Reagan, being the governor of this state, supported these requirements and adopted a law on a significant reducing tax on property taxes. According to some estimates, Reagan's commitment to the new tax policy ensured its success in the presidential election. The new movement was developed in other states, which gave reason to talk about the "tax revolution" that occurred in the United States during this period. In the 1980s, becoming president of the United States, Reagan continued the course to liberalize the economy and creating a favorable climate for private business. From 1982 to 1984, the Committee of Economic Advisors The President was headed by M. Feldstine, who directly participated in the formation of a new tax policy.

One of the main representatives of the economic theory of the sentence is Martin Feldstine (Martin. Feldstein, Rod. 1939), Professor Harvard University. From 1978 to 2008, M. Feldstin headed the National Bureau of Economic Research (Nber). He was an economic adviser not only by R. Reagan, but also J. Bush Jr., in particular one of the developers of the program of partial privatization of the social insurance system. It is known first of all with his works in the field of macroeconomics and public finances. The main works of Feldstine were devoted to the analysis of the public sector, in particular health care: "Economic analysis health care efficiency " (1967) , "Health Economics" (1979) , "Directory but public sector economy" (1987). In 1983, there are two of its work on the problem of taxation: "Inflation, Tax Regulation and Education of Capital" and " Taxation of capital " . In 1988, there is a surround empirical study " United States in the global economy " . In 1977, for his research in the field of public sector, Feldstine received the Medal J.-B. Clark.

Another prominent representative of the school - Arthur Laffer (Arthur. LaFfer, Rod. 1941). He played a key role in the adoption of the famous "thirteenth amendment" to the California State Constitution, with which the so-called "tax revolution" began. In the period 1981-1989. He was a member of the Consulting Council on the Economic Policy of President R. Reagan. The main works: "The phenomenon of world inflation" (1975) , "Economic theory of the Tax Revolution" (1979), "Fundamentals of economic theory of sentence" (1984) .

Economic offer theoryHow this declare Sami themselves, stands on the methodological positions of the neoclassical school and is the use of neoclassical analysis to the macroeconomic aspects of the influence of tax policy on the economy.

In many theoretical provisions, it closes with monetarism, and it is not surprising, because most of the theoretics of this direction came out of the University of Chicago's walls. In particular, representatives of the economic theory of the proposal, as well as M. Friedman, rely on strictly empirical analysis, believing that only the analysis of real facts makes it possible to identify existing economic patterns. Thus, the service of M. Feldstine at the US National Bureau of Economic Research (and, accordingly, the ability to analyze a large amount of empirical data) has created a basis for its tax policy research and its consequences for the economy.

As already noted, pronounced pronounced antikensian orientation Schools under consideration. This manifests itself not only in criticality of siplaisiders to the state intervention in the economy, but also in their theoretical provisions. In particular, economic offer theory Ignores the problem of converting savings into investments important to Keynesianism, based on the equality of these two indicators. At the same time it supports the concept of permanent income M. FrydmanAccording to which the size of consumption depends on the part of the income, which is constant, and therefore do not decrease with income growth. Thus, the Keynesian problem of efficient demand, which consists of investments and consumption, is refuted as non-existent - with income growth, savings are growing, which there is an investment, and the level of consumption is not reduced.

Close monetarism are the views of the authors of the economic theory of unemployment proposals. They proceed from the existence of the natural norm of unemployment and consider useless policies to achieve complete employment. Seplaisiders ignore such an important concept for Keynesianism as "Forced unemployment", And consider friction and voluntary Unemployment, making focus on the latter.

At the same time, there are also discrepancies between these two schools. Monetarism makes the main focus on the field of monetary circulation, limiting its analysis by research on the impact of money supply to the main economic indicators. The economic theory of proposals to the center of its research puts the problem of creating a favorable business climate for the development of industry, i.e. growth offers. Thus, it focuses on the first and foremost on production problems. This allows researchers to say that it returns to the tradition of classical political economy.

It is important to remember!

In the late 70s of the 80s in Western economic science The concept of "economic economics" began to be developed. This course is a kind of neoclassicism, and it has not been a noticeable impact on the formation of the economic policy of the US administration during the President of R. Reagan, as well as Governments M. Tetcher in England, Christian Democrats in Germany.

In the design and dissemination of the theory, a large role belongs to the American Institute of Entrepreneurship, which, according to I. Stone, "the Washington factory of thought, which, perhaps, can be considered the leading source of conservative ideas."

The authors of the proposal theory use the concepts of various schools, including English, American, West German. Their theoretical sources go back to the works of F. Knight, Simons, L. Mises, V. Okena. The leading authorities for them are F. Hayek, M. Friedmen, W. Bern, M. Waydenbaum, Rynen. A great influence of formation of the economic concept of the proposal was provided by the work of F. Hayek "New studies in the field of philosophy, politicians and history of ideas" (1978), as well as the monetary theory of M. Friedman. The founders of the economy theory of the proposal were American economists A. Laffer, R. Mandel, M. Feldstine, J. Gilder, M. Evans and others.

Rejecting the Keynesian system of anticyclic regulation of the economy Representatives of the economy offer transfer the emphasis from the formation, demand for the problems of supply of resources and their effective use. Focusing not on the formation of demand, but on the proposal of production factors, they are offered to simultaneously activate the motives and incentives for the entrepreneurial activity of economic agents. Accordingly, the nature and content of recommendations in the field of economic policy, methods of its implementation are changed. The main task of its concept of neoclassics is seen in increasing the long-term growth rate of the economy while maintaining its dynamic equilibrium and non-inflation.

They see the basis of all troubles economic System capitalism is that the state intervention in the economic process violates its stability based on free market, upsetting his normal mechanism. As a result, the main stimulus is weakened economic activity - Private initiative, without which economic successes are impossible. Hence the low level of resource use, their suggestions. Considering the problems of the economy through the prism of suggestions, neoclassics proceed from the fact that they can be solved with the help of the market. Only the market provides economic agents free choice of optimal economic decisions, activities, the choice between consumption in the present and future, etc. Only in this way, they consider it, the economy is able to gain the maximum growth rate and give the greatest return. Unlimited private initiative in the conditions of maximum freedom of action of the market mechanism - this is the initial principle that is taken as the basis of the economy of the proposal.

A large place in the works of authors of the economy offers is the problem of inflation. They are largely perceived by the monetarist interpretation of this phenomenon. Exaggerating the role of money in the functioning of the farm, monetarists proceed from the monetary nature of inflation that has a great influence on the state of the economy. Their program provides for anti-inflation measures, including tax cuts, reducing state expenses for social needs, eliminate budget deficit, abolition of administrative restrictions that prevent free business activities

The proposal theory does not exclude the use of budgetary and credit and monetary methods of impact on the economic process. However, unlike supporters of the regulated economy, the proposed nature of such an impact and its scale is different. Proponents of the economy offer categorically reject budget expenditures to stabilize or form a demand, qualifying them as a factor in destabilization of the economy and pushing inflation. Rejecting the policy of budget expansion, they advocate a balanced budget, rehabilitation of finances.

Supporters of the theory of the proposal are focused on the internal, peculiar individuals of the subjective motives of behavior and incentives. It is believed that the economic activity of both individuals and firms is believed to be in the best way. The main obstacle is called the tax system, high tax rates. According to L. Laffer, people work not in order to pay taxes. Unlike Keynesians, proponents of the economy proposals belong to savings. They proceed from the fact that the growth of savings is not negative, but a positive effect on economic process, being a source of increasing investment and increasing the rate of dynamic equilibrium.

As well as monetarists, the authors of the theory of proposals reject the use of taxes as a means of anticyclic impact on the economy. Progressively increasing tax on income of individuals and corporations is considered as an obstacle to the growth of savings, and therefore new investments of capital, build-up of business activity, sustainable economic growth. Taking care of those who receive monopoly profits, about high-income recipients, proposals of the economy proposals included in their theory as the most important requirements for tax cuts and reducing the degree of progressive progressive income taxation.

The justifying course of tax cuts, the theory of sentence relies on the "Laffer effect", based on a mathematical model that designs the relationship and the relationship of government revenues and taxes. According to the construction of A. Laffer, growth state revenues It happens only to a certain level of tax rates. Then it slows down, and when the critical mark is reached, it begins to decline. If taxes absorb all entrepreneurial income, which can be represented mainly as an abstraction, then there will be a decrease in production growth rates or even its termination. This will result in a sharp reduction in tax revenues in the treasury. By illustrating the action of the mechanism of the "Laffer effect", supporters of economic theory of the proposal strongly recommended the US administration to make a tax reform as occurred in the early 80s.

Thus, the economic theory of supply focuses on stimulating a wide private initiative, private entrepreneurship. Her supporters see this key to solving the most acute economic problems. The most important lever of stimulating a private initiative is considered to reduce tax rates and providing privileges to corporations. Only through the natural market mechanism and the full increase in the proposal - they argue - it is possible to ensure the effective use of resources and stimulate the demand for products. Any increase in budgetary expenses for these purposes is rejected as an increase in social spending. Budget deficit, as one of the negative indicators of the state of the economy, is proposed to eliminate. As J. Tobin, representing the "fiscal orthodoxia" supporters of economic theory of proposals, are in favor of savings on government spending and a balanced budget.

The economic theory of the proposal caused sharp criticism from the famous Western authors. According to J. Galbreyt, the economic theory of proposals is more than a transitional nature, being a "temporary deflection in state policy." He is convinced that this theory, together with monetarism, will be "rejected and is even rejected by experience and common sense" 1. Low practical efficiency of the economy offers notes American economist B. Bosworth. Although, in his opinion, the problem of suggestions of resources deserves more attention, the authors failed to develop substantiated recommendations for its implementation. The exception is only an increase in investment as a result of the 1981 tax reform in general, the economic policy of the US administration in the 80s had serious miscalculations. For example, despite the measures taken to stimulate savings, their share in the GNP has not actually changed. Bosworth believes that these calculations of Reaganians are mainly related to hyperbolicization tax benefits Corporations to the detriment of other methods of state regulation of the economy. The authors of the P. Samuelson and other countries of the textbook "Economics" in the United States and other countries and W. Nordhauses are convinced that the rehabilitation of the American economy is not connected with the proposal, according to neoclassics, but in demand.

In contrast to Keynesianism, this economic theory prefers proposal as a growth factor.

Economy Offers - This is not a holistic concept, not a complete and interrelated system of views, methods of theoretical analysis, and mainly the system of econometric calculations on which practical proposals and recommendations are based.

The proposal economy covers a number of practical issues aimed at stimulating production, investment and employment. Among them you can allocate:

1) tax policies;

2) the policies of the privatization of state enterprises;

3) budget rehabilitation;

4) Reducing spending on social needs. The economy proposals were developed mainly by American economists. Among them - A. Laffer(Professor of the University of South Carolina), M. Feldstine(Harvard University), R. Rigan(Former US Finance Minister). Together with the monetarist school, this direction belongs to the conservative wing of neoclassics.

According to representatives of the economy proposals, marketit is not only the most efficient, but also the only "normal" way of organizing the economy. They oppose the regulation of the economy from the state. Regulation - inevitable evil leading to a decrease in efficiency and binding to the initiative of participants in economic activity. Views of Supporters of this Concept resemble the initial provisions of economic philosophy Hayekhis concepts of "spontaneous order".

The main idea of \u200b\u200bthe economy offersconsists of: 1) in the refusal of Keynesian methods of stimulating demand;

2) in transferring efforts to support factors defining the proposal. The reasons for inflation are viewed in high tax rates, in financial Policy States provoking cost growth. Price increase - The reaction of manufacturers for unwanted turns of economic policy and unstable conjuncture. The main recommendations of this "school":

1) tax cuts in order to stimulate investment.Increased tax burden generates a budget deficit, prevents economic growth. The proposal to abandon progressive taxation, reduce tax rates, first of all the so-called margins for income, capital, as well as for wages, dividends;

2) privatization of state-owned enterprises. Privatization - Measure aimed at reducing state participation in economic activities. It will allow you to get additional financial resources, reduce dimensions public debt. The effectiveness of enterprises transmitted to private hands will increase; Competition will exist; Right up the quality and competitiveness of national products;

3) budget rehabilitation.Theoretics proposals oppose the budget deficit. Unlike monetarists, they believe that the budget should not be considered as a monetary policy tool;

4) "freezing" of social programs.