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From the Economy of Commodity Wealth to the Service Society

Author: Yevgeny P. Dyatel, Dr. Sc. (Ec.), Prof., Head of Economic Theory & Economic Policy Dept; Natalya V. Golomolzina, Cand. Sc. (Ec.), Associate-Prof. of Municipal Economics & Management Dept.

Abstract: The subject of management of social-economic processes in a society is first and foremost functioning and modification of the structure that defines them. The New Deal marked a refusal of the laissez-faire doctrine that had been dominating for more than 100 years and was aiming at maximizing commodity wealth. In the next years in the USA and other developed capitalist countries new public structures had been formed. Characterizing them we proceed from the following theoretical-methodological prerequisites: 1) GDP has the cost nature coinciding with relative expenses of work; 2) distribution of a product depends on marginal efficiency of various factors of the production participating in an exchange of substance, energy and information between society and nature; 3) at the top of a pyramid of public metabolism there are information activities; 4) because of the threat of destruction of bases of a social system none of the subjects of economic activities cannot be excluded from assignment process, and, in this connection, the share of GDP of each of the participants cannot coincide with marginal efficiency of their work; 5) these are services of factors of production that are paid rather than relative expenses of work; 6) the term “service society” came into scientific use in the XX century, however such social system dominated throughout all human history; 7) the state budget is an important way of GDP redistribution; 8) along with social services production (including infrastructure creation), ecological and military services can be identified; 9) the special place in modern society is taken by financial services; 10) the understanding that modern society is a service society allows regulating the activity of its economic agents according to the purposes stated by the voting majority.

Key words: the New Deal; J. M. Keynes; laissez-faire; commodity wealth; service society; economic rent; economic structure of society.