A New View of the Economic Ability of the Government, Egalitarian Goods and GNP

Abstract

As is recognized, indirect business taxes are the unearned income of the Government. Shows that the fifth factor of production is the economic ability of Government; indirect taxes on business are corresponding factorial income, which is transferred into Government profit. Shows also that transfer payments create special social goods – egalitarian goods, defined as social tranquillity, reached by overcoming poverty and by income inequality reduction. Creating one of the kind of social goods, transfer payments assume a productive character. The new view on indices taxes on business and transfer payments makes it obligatory to include them in GNP and NI in a new way, which is shown in the macroeconomic indices of the USA.

Citation

Papava, V. (1993), "A New View of the Economic Ability of the Government, Egalitarian Goods and GNP", International Journal of Social Economics, Vol. 20 No. 8, pp. 56-62. https://doi.org/10.1108/03068299310044425