GLOBALIZATION AND THE SOCIALITY OF THE ECONOMY

Abstract

The article identifies that the problems of combining social and economic development goals has not been resolved in Ukraine. That is, economic development requires investment, which in the short and medium term limits consumption. In turn, the low level of consumption does not allow freeing up sufficient resources for savings and investments. For a real increase in the standard of living for a long-term period, the outstripping rates of technological progress (growth of labor productivity) are necessary in comparison with economic growth. The specific factors for high-income countries that significantly affect the ratio of consumption to investment are discussed. It is determined that the distribution of wealth within societies, the inter-country (interregional) comparison of this distribution and the historical trends in the distribution of total capital into its private and public forms are of great importance for the ratio of savings to consumption throughout the world. An important link in the relationship between economy, consumption and social development is the cost of training the «workforce» and the expected income from it. In other words, social spending is to some extent regarded as the goal of economic development. It is proved that the development of the Ukrainian economy over the past 30 years has occurred mainly by stimulating consumption. It led to a lack of investment resources, a concentration of wealth and income, a distortion of the asset structure of financial intermediation institutions, the formation of an oligarchy and clan structures, the merger of power and property, state administration and business, and the infringement of the rights of small businesses..

Keywords

• economic growth
• globalization
• investments
• consumption
• sociality of the economy