The production can be considered in the broad and narrow sense. In the narrow sense of the production is the process of creating goods and services in a certain period of time. In the broad sense of the production is continuously renewed process, which in addition to direct production includes distribution, exchange and consumption. This constant process of renewal of production is called reproduction.
There are 2 forms of reproduction: simple (extensive) and extended (intensive). Under the simple reproduction of the scale of production does not change, and all the surplus product is consumed by the manufacturer. Under extended reproduction the part of the value added product joins to functioning capital, thus there is increasing the scale of production.
Sphere of production combines homogeneous sectors and activities for final result:
• sphere of material production (result – things – the basis of social production);
• sphere of organized production (result – organization, organized public relations);
• sphere of spiritual production (result - information public consciousness);
• sphere of human production (people, population).
For the first time the analysis of social reproduction was made in the mid-18th century and the founder of the school of physiocrats is the french economist Francois Quesnay. This analysis was reflected in his work «Economic table» (1758). Quesnay has developed a prototype of reproduction relations in society. He also formulated the term «reproduction». More in-depth analysis of social reproduction was carried out by Karl Marx and described in the second volume of «Capital». Marx revealed a mechanism providing proportionality between the two divisions of social reproduction (production of means of production and the production of consumer goods) and within these divisions.
Figure 2. The parts of the reproduction process
John Keynes considered the problems of social reproduction and. After the great depression of 1929-1933, he tried to reveal the causes of violations of the reproduction process, considering that the main cause of the crisis is the lag (îòñòàâàíèå) of solvent demand of the population.
5. Circulation of economic goods
Consider two-sector model of the economy consisting of only two macroeconomic agents, households and firms – and two markets – the market for goods and services and market economic resources (figure 3).
The figure shows that:
1) the cost of each material flow is the amount of cash flow;
2) national product is equal to national income;
3) aggregate demand is equal to total supply;
4) total revenues equal total costs.
Figure 3. Model of the circular flows in the economy
(Ìîäåëü êðóãîîáîðîòà ïîòîêîâ â ýêîíîìèêå)
The scheme has the name of circulation model or models of circular flows. Material flows move counterclockwise, and cash – clockwise. The demand moves in a clockwise direction, and supply – against.
With the introduction of the state in the model of the circuit, it becomes complicated, including: - taxes paid by households and firms;
- state subsidies to producers and transfer payments to households;
- government purchases of goods and services;
- public services to households and firms.
Basic terms and concepts:
Need Benefit Production in the broad and narrow sense
Distribution Exchange
Consumption Reproduction Simple reproduction
Extended reproduction
Productive forces
Factors of production
Industrial relations
Work
Capital
Earth Entrepreneurial skills
Border production capabilities
Alternative (opportunity costs)
Practice 3. Constitutional Law in the UK and USA
CONSTITUTIONAL LAW IN THE UK AND THE USA
Being the supreme law, the constitution helps the state function on the basis of outlined rules and generally accepted principles. If we try to compare the main characteristics of the constitutions of the United States and Great Britain, we will see that the first one is presented in the written form while the second one is considered to be unwritten. However, we should keep in mind that many parts of the British constitution exist in written form too. One of the most important enactments of the British constitution was the Great Charter (1215) when king John had to sign the document where the rights of the Englishmen were written down. Among other leading enactments, we should mention the Bill of Rights (1689), the Act of Settlement (1700-1701) and the Parliament Act of 1911.
The sources of English constitutional law are statutes, precedents, textbooks, the writings of historians and political theorists and other documents of importance. As there is no codified document then there is no special safeguard for constitutional rules. Constitutional law can be changed or amended. The Parliament is authorized to legislate in any field. There are no fundamental ideologies and no procedures to interfere with constitutional change.
In the USA there exists a written constitution adopted in 1788. It starts with the words: «We, the people of the United States, in order to form a more perfect Union, establish justice, insure domestic tranquility, provide for the common defence, promote the general welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution of the United States of America».
While American constitutional law derives many of its forms from the common law, it is important to note that the constitutional order of the United States was very different from that of the United Kingdom. The Constitution’s written nature and formal enumeration of the power of government are the main factors determining this difference. Constitutional law of the USA deals with interpretation and implementation of the United States Constitution, the fundamental law of the country. Constitutional law also deals with relationships within society, including the relations among the states, the states and the federal government, the three branches (the executive, legislature and judiciary) of the federal government, and the rights of the individuals on the federal and state level. The logic of separation of powers is as follows: the principle of separation of powers requires that the legislature not act beyond its constitutional authority; it establishes the courts as the final legal arbiter of that principle; an official who acts beyond one’s legal authority acts unlawfully and is subject to legal liability accordingly. The Supreme Court has played the crucial role in interpreting the main constitutional provisions. Consequently, study of constitutional law focuses mainly on Supreme Court rulings.
The Supreme Court’s interpretations of the Constitution are binding on the legislative and executive branches of the federal government, on the lower courts in the federal system and on all state courts. That is why they say that the US has a rigid constitution because proposals to amend the main constitutional document can only be added through a complex procedure of majority vote in each house of Congress.
1. Answer the following questions:
1. Does the British constitution have systematic statement of law?
2. What are the main sources of constitutional law in the UK and the US?
3. What notions are stressed in the Preamble (ïåðåäìîâ³) to the
Constitution of the US?
4. What judicial body in the US is given power to interpret the
Constitution?
5. C a n y o u na me t h e le adin g enac tmen ts o f t h e B r i t ish
constitution?
2. Why is the division of power important? What are drawbacks (íåäîë³êè) and advantages of one-house legislature?
3. Compare the system of government of the United States, the United Kingdom and of Ukraine? How is power separated among different branches?
4. Explain the meaning of the following words in English: Executive, judicial, legislature, interpreting the Constitution. Referring to the text make up a dialogue on the topic «Separation
ofpowers».
VOCABULARY STUDY
1. Restore the word order:
a. A/ of government/ the United States/ structure/ has/ federal.
b. On/ the Constitution/ state/ autonomy/ imposes/ limitations.
c. Are/ by/ constituted/ rules/ legal/ the/ and/ the/ courts/
legislature.
d. Called/ the/ rules/ are/ creating/ of government/ agencies/ rules/
constitutive.
e. by/ Congress/ legislative/ the/ power/ exercised/ is.
f. Have/ the/ law/ the/ courts/ authority/ has/ to determine/
conferred.
g. Imposes/ the U.S. Constitution/ obligations/ on/ the/ legal/ states/
with/ each/ in/ their/ other/ relationships.
h. Defined/ the/ the U.S. Constitution/ of/ the/ powers/ government/
federal.
2. Match the suitable translation to the following combinations with the word «power»
Powers expressly assigned
Separation of powers
The Great Powers
The power of attorney
Power to contract
Power structure
The power of attorney and substitution
Powerpolitics
The Great Charter (Magna Carta)
3. Read the text and fill in the blanks with verbs in necessary forms:
The idea that government (to be, not) powerful (to appear) with King John’s signing the Magna Carta in 1215 under the threat of civil war. The document (to establish) the principle of limited government refusing the absolute role of the monarch. The Great Charter (to provide) for protection against unjust punishment and the loss of life, liberty and property except according to law. It (to stipulate) that no citizen (can, to punish) without a fair trial. Under this prominent document the king (can, not, to collect) taxes without consulting his advisors. Though the Magna Carta (to intend) as the document protecting thearistocracy in time it (to come) one of the cornerstones of British liberties.It (to be) still (to regard) one of the oldest written constitutional papers.
4. Read and comment upon the definition of the constitutional rights given below:
Constitutional rights are given or reserved to the people by the U.S. Constitution, and in particular, the Bill of Rights (first ten amendments). These rights include: writ of habeas corpus, no bill of attainder, no duties or taxes on transporting goods from one state to another (Article I, Section 9); jury trials (Article III, Section 1); freedom of religion, speech, press (which includes all media),assembly and petition (First Amendment); state militia to bear arms (Second Amendment); no quartering of troops in homes (Third Amendment); no unreasonable search and seizure (Fourth Amendment);major ("capital and infamous") crimes require indictment, no double jeopardy (more than one prosecution) for the same crime, no self-incrimination, right to due process, right to just compensation for property taken by eminent domain (Fifth Amendment); in criminal law, right to a speedy trial, to confront witnesses against one, and to counsel (Sixth Amendment); trial by jury (Seventh Amendment); right to bail, no excessive fines, and no cruel and unusual punishments (Eighth Amendment); unenumerated rights are reserved to the people (Ninth Amendment); equal protection of the laws (14thAmendment); no racial bars to voting (15th Amendment); no sex bar to voting (19th Amendment); and no poll tax (24th Amendment). Constitutional interpretation has expanded and added nuances to these rights.
5. Join the word pieces:
DISTRI TUTION
CONSTI BUTION
DRAW BACK
LEGIS IMPLE
MENTATION LATURE
PRESI ING
BIND DENT
Make up word combinations to illustrate the usage of thesewords.
SPEAKING
1. Suggest your ideas on the following statements:
– It has been said that «America is the only true democracy in thewestern world». Do you agree?
– Are you interested in politics? Should lawyers be politically active?
– What are the main differences in the Constitutions of the UK, theUSA and our country?
– What kinds of monarchy can you name? What are the pluses and minuses of living in the country ruled by king or queen?
– If you were to appoint the members of the Cabinet of Ministers what criteria would you rely on and whose recommendations would you listen to?
NB! For rendering your ideas, you can use inserted components like the one given in the text («consequently»). Among others «logical connectors» are: to begin with, firstly, secondly, notwithstanding, therefore, concluding the above- mentioned, summarizing this passage, etc.