Two fundamental economic theories

Economics as a science generates two fundamentally different classes of theories. Some teach how individual businessman or business body should fatten their own pockets regardless of public welfare. Others place a premium on forming a dignified life for the majority, the strengthening and development of the whole society. In the latter case, economy distinguishes in the whole spectrum of society's needs the degradingly-parasitic and demographically determined components. The first component cannot be predicted in principle, due to depravity of individuals, perversions and lack of sense of measure.­ To satisfy such needs means to suppress genetics of an individual and his genus or of surrounding people and biosphere as a habitat. As for the biospherically permissible demographically determined needs, they are severely due to the number and age of the residents, the need to maintain the infrastructure of the society, providing "assembling" of many individuals into a public organism. Therefore demographically determined needs are predictable in the probabilistic-statistical sense.­­ The latter is the basis to set up the system of production and distribution of products and services in the society to provide full and guaranteed satisfaction - it all depends on the intention of politicians, scientists-economists and lawyers to take this way and make it. Fixation on guaranteed satisfaction of demographically determined needs enables to form a goals vector of economic development and to build balances of production and development of each administrative-territorial unit (county, region, district) both in the natural and in financial accounting of products.­ Mathematically this balance is described with the system of linear equations, reflecting the processes of product exchange between the production sector with other sectors and the population. The purpose to find an optimized solution of such equations system is to ensure that each of the production sectors produced products as much as it needs for all other related sectors (intermediate product, raw materials, components) and to directly meet demographically determined needs of the population. Since the latter are limited by the physiology of the species "Homo Sapiens" and healthy lifestyle (this is the main thing that should be taught, directly and indirectly in kindergartens, on television, at schools), then the system of equations has a vital and economically feasible solution, unlike the mythologemes-based approach, "the market will adjust itself", "the more the better", "combining for yourself, you kind of work for the community." In the course of this task, taxes and subsidies are calculated strictly mathematically as the correction factors for the profitability of production in accordance with the demographically determined needs at the prices prevailing in the market. Products produced in accordance with the degradingly-parasitic spectrum, have no right to have subsidies, but can be a source of increased taxation to finance both measures to eliminate the damage to society and nature, as well as measures to support healthy lifestyle. Accordingly, breweries and producers of vodka, wine and cigarettes should spend a lot on promoting absolute soberness and maintaining a healthy lifestyle, thereby making sure the toxins they produce would become unclaimed in the future. The state for its part, when pursuing such a policy, as such products get more and more unclaimed, should support both the flow of capital (without the ruin of enterprises) into other industries, and retraining of personnel, so that people could easily work in other areas without losing the level of direct and indirect income they have achieved. These are the possibilities of purposeful state regulation of the market economy. The plan, which is being implemented in top-bottom manner, and the market that supports self-regulation and the use of resources not covered by the plan, when in a reasonable statehood and economic science, are never opposed to each other because they are interrelated elements of the single macroeconomic mechanism of the society. Top-bottom controlling is more of a structural method, and market self-regulation is an non-structural way of controlling; the plan is what should allow them to complement each other. Such approaches to form balanced development of territorial-administrative complexes are not new. For the development of such approaches in his time V. Leontiev received Nobel Prize. The difference with our approach is only that Leontiev (as well as all economic science of the past) did not distinguish degradingly-parasitic and demographically determined spectra of needs and spectra of production, and as a result he did not come to understanding the possibilities and ways to adjust the economy with the means of public administration to guarantee satisfaction of demographically conditioned needs of all people. That is why, in many cases, the approaches to solve social and economic problems on the basis of Leontiev's scientific heritage in practice prove to be inconsistent in terms of adequate controlling. Once the mechanisms of regional controlling are formed, there appear grounds for real state administration in the highest echelons of power, which in its essence is to draw up into a single balance the surplus and deficit of all products and services produced in the regions. Based of these data, one can calculate strictly mathematically state taxes on the goods and services presented in surplus, and subsidies to the part presented in the deficit. Once the formation of the state balance of industries is completed, there become available the initial data to mathematically calculate the customs duties and establish a mode of duty-free deliveries of goods that are deficit nation-wide. Customs duties imposed on the goods that are produced in the country should not only create a healthy competitive environment, but also purposefully protectionisticly be directed to develop the relevant sector of domestic production in order to form prospects for reaching competitive level, or for re-profiling to other products. If the import of a product leads to imminent bankruptcy of separate large enterprises or entire industries (for example, poultry), then the amount of funds received from customs duties should exceed the total state damage related to the restructuring of production, creation of an equivalent number of new vacancies, payment of unemployment benefits, etc. Briefly the essence of this algorithm can be expressed with the following formula: from the integrated technologically closed agro-industrial complexes to the balanced development of the regions in order to create the common national and economic complex on the principle of the self-sufficient superconcern state that unites production on the basis of different forms of incorporation. Such a state should have economically adequate principles of arrangement and controlling. Herewith it is necessary to understand clearly that: the motivation of people for conscientious creative labour has a moral and psychological basis, which is only expressed in their willingness to work for the offered, sometimes very moderate, salary. It is only this case when society achieves true prosperity. If the state and private employers do not understand that, then they are doomed to face the fact that the staff will simulate the work or perform it at a minimum of quality and quantity, receiving any high salary and asking for further wage raise. In this case, the society will inevitably and regularly fall into crisis and constantly waste huge resources on attempts to get out of it. However, everyone should understand today that Russia has achieved moral and psychological development, in which its population will not slave away for the oligarchs.