Real income of the population and state policy of regulation of the consumer market

According to the existing tradition, it is necessary to assess the role of money incomes in the formation of the consumption market not only by comparing the indicators of income growth and retail turnover, noting the realized potential of the market in terms of turnover, and the possibility of developing the consumer market by the indicator of cash incomes, but also by the way in which real income Correlates with the growth of both output and labor productivity.

The real disposable income is directly connected not only with the sphere of their realization, but primarily 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 - changes in the volume of consumer goods and the amount of money income, you 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 outstrip revenue growth 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 less than one, then by the nature of its manifestation in the consumer market, it can be judged that the state pursues a policy of "expensive money" when 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 sales of domestic consumer goods, the reduction of commodity stocks.

If a policy of "expensive money" was pursued in the country or region 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 a low level of inventory 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, would again lead to the fact that real income would begin to fall.

When the growth rate of incomes is practically equalized 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 demand, as the size of commodity stocks in retail trade increases sharply, and the market lives In a state of "waiting" for increasing consumer activity. For example, this 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 consumer 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.

The stable state of the consumer market is 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 possibility of considering 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.