To understand what is important for the development of the economy, imagine that there are only five people living in the country. One is engaged in services, such as haircuts for the population, the second produces furniture for the domestic market, the third produces clothes, but sends almost everything for export, and the other two work for the first three. As a result, we see the exchange of money supply between each other, but thanks to one of the exporters, the money supply increases and then this currency is exchanged with other market participants, but if, on the contrary, the country and its population are completely dependent on imports, then it will become poorer.
Of course, the economy of the state is much more complicated and the example above cannot fully reflect the main criteria that indicate the development of the economy or its degradation.
Our planet has been divided into three worlds since the last century, the first world is the countries that are essentially members of NATO, the second world is the countries of the former allies of the USSR during the Cold War, and the third world is all those who did not enter the first two.
The first world is the capitalist countries with the highest GDP.
The main criterion for all economists is GDP, but it is taken into account for the entire country and per capita, all these are correct indicators, but one more more accurate one is needed, namely GDP per square kilometer, since a country with an area of several million square kilometers has a chance overtake a country with an area of several hundred thousand square kilometers in terms of GDP.
GDP is essentially the main indicator of the country's profitability, but is it really possible to compare the GDP of, for example, the Netherlands and Russia, because with such an area, GDP will probably be higher even with the worst economy, since you can simply plant apple trees all over the country and grow potatoes and export this product to GDP? and so it will be big. But we must take into account the effectiveness of management and we must take into account 1 square kilometer per unit of measurement.
For example, Africa's GDP is $2,719 billion, while Italy's GDP is $2,169 billion. Africa is not a single country, but theoretically it can become one, and then its economy will be better than the Italian one? Formally yes, but in reality no. Such erroneous judgments can arise precisely because of the absence of such a term as GDP per square kilometer.
In Russia, GDP in 2023 amounted to $2062 billion, in the same Netherlands $1080 billion, but at the same time the area of Russia is 17,125,191 km2, the Netherlands is 41,543 km2.
So we see that Russia's GDP is larger than the Netherlands, but the area of the country is 412 times larger, therefore, the Netherlands use their territory as efficiently as possible, which is why it is important to use such a criterion, since the borders are a fickle thing and the sizes of countries both decrease and increase throughout the history of mankind.
CAN ALL COUNTRIES BE COMPARED EQUALLY?
Of course, we must take into account that some of the richest countries are former colonialists, and some of them are still pumping resources from African countries to other third world countries, i.e. have a big bonus compared to other countries.
At the same time, the United States prints the main currency in the world, as it had a favorable geographical position during the Second World War, and its population is from Europe, many of whom had large capitals and brought them to this country, which also gives them a big bonus.
But you need to take into account other examples, for example, China did not have colonies, but now it is the second economy in the world, and may soon become the first, the USSR also did not own colonies, and all the republics that were part of the USSR had equal rights with the RSFSR, if not better conditions.
But now we have what we have. More than 30 years have passed since the collapse of the USSR, China is no longer a completely socialist country, but already a full-fledged member of the “club of capitalists”.
Therefore, amendments can be made to past history, but this is already history, because with poor leadership, you can lose huge wealth, as from the famous rule of three: “The first created, the second developed, the third lost.” For example, Portugal had a huge number of colonies around the world, and now most people will not even name the name of its capital, the country is not a member of large international organizations, such as the Big Seven or the Twenty.
At the same time, small Great Britain still dictates its will to the world, a significant part of business in Canada and Australia is present through English companies, for example, oil in Canada is pumped out by BP, but the population recognizes the King of Great Britain as the head of these countries.
Thus, there are certainly differences, but there is nothing exact and it is impossible to determine the level of development of the country by this criterion, but nothing can be ignored either.
SOLUTION OF THE PROBLEM THROUGH BIG TAXES.
Many believe that the rich should be taxed at almost 90%, and the poor should be taxed altogether. Such a solution is unlikely to work, at least in Russia, because in our country there are already quite large payments, because if you earn more than the maximum amount under the Tax Code of the Russian Federation, more than 200 million rubles a year, then you can’t apply the simplified taxation system anyway , i.e. low taxes and you will have to pay VAT and income tax.
Therefore, raising taxes is possible with the successful and sustainable growth of the well-being of the population.
The collection of taxes directly depends on the trust of the population in the government, in Africa, even with stability, there will be no normal tax collection for the next decades, but in the same Europe, the population sees where the spending is going and therefore honestly contributes to society.
In Russia, the majority does not want to honestly pay taxes, answering this: “Why, if they are stolen”!
Since there is currently no planned economy, the introduction of the necessary enterprises is possible by establishing zero tax rates, subsidies, loans with a zero interest rate and deferred payment.
BELOW LET'S CONSIDER MY COEFFICIENT OF THE LEVEL OF TRUST TO THE STATE.
This indicator reflects the effectiveness of the work of the Government of the state, because it is possible to set a tax in the amount of 90%, but then no one will pay it, everyone will use “gray” schemes and evade taxes in every possible way, including increasing the expenditure side of their business and the coefficient will fall.
But if the coefficient grows, then the state is simultaneously conducting correct educational activities, correct punitive activities, i.e. competent introduction of fines and competent work on increasing the welfare of the population.
We will calculate the coefficient using the following formula - Budget / GDP.
Let's compare several countries and consider the coefficients of different countries:
Russia - 0.16
Germany - 0.4
Nigeria - 0.03
Afghanistan - 0.09
USA - 0.22
Australia - 0.26
Thus, we see that the level of economic development is directly related to this coefficient.