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7 Terms

1
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the role of the state

establishes the rules of law, guarentees public securtity and order, dispenses justice, defines defense policy and prepares and conducts military operations, defines and conducts foreign policy, the states mission is to stabalize the economy to preserve economic equilibrium (full employment, price stability, foreign trade balance) and to obtain sustained growth by implementing economic policies adapted to the situation

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state document

established by the government and voted by the parliament which plans and defines the expenditure and revenues that the state will engage and collect for the coming year

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tax revenue

taxes on consumption (the value added tax), income taxes (income tax/corporate tax) and taxes on property and capital (property tax collected by local authorities or taxes on capital gains)

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government expenditure

state expenditure are classifed into “mission”, the intial budget act for 2024 included 47 missions (education and research, defense and security, social policies)

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planned economy

an economy in which investment, production and pricing choices are made by the statte, the planned economy is opposed to the market economy, in market economy, economic agents are not subject to a plan established by the state; goods, services and capital are exchanged according to market supply and demand

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current planned economies

most planned economies disappeared with the breakup of the soviet union, the fall of the berlin wall and the turnaround of the chinese economy following the death of mao, in europe the labor and socialist parties while recognising the advantages of the market economy try to combine it with the benefits of statte intervention, the neo liberalistis (conservative moderate right) beleive the modern state often has too much influence on the economy and interferes with the rules of the market economy

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wage and inequality

the average wage income in france is $2574 monthly, the wage income is the sum of all wages received by an individual each year, net of all social contributios, the median salary income is around $2140 per month, which means that 50% of employees earn less than $2140 per month and 50% earn more