The state is a system for regulating the economic, social and legal life of society.
To ensure the life of society, the state needs money.
High-yielding states can more effectively develop education, medicine, science and infrastructure.
Monetary flows of the state
The state is an enterprise of enormous size. Like any enterprise, the state has expenses and incomes. The national income of the state consists of net profits of enterprises, incomes of their owners, earnings of workers and rent payments received by the owners of premises. Each state has a unique business strategy and a number of inherent "trumps" of its economy. Thus, Switzerland has a reputation as an "international banker" and political neutrality. The United States has 12% of entrepreneurs from the total number of citizens of the country, which ensures a high level of innovation of the state. Russia is actively using the raw material complex and agriculture.
Where does the profit go
States have different nationalIncome. In addition to the level of welfare of citizens, the states still have tax surpluses and income received from the lease of municipal real estate. The state invests money in debt bonds of other countries, shares of real sector companies. A lot of money is spent on tourism programs, popularization of the country in the world (including sports events).
Part of the money goes to the stabilization fund of the state (stabilization fund, gold and currency reserve). This is a kind of money "for a rainy day" - in case of crises, natural disasters, accidents, etc.
GDP and GNP
Also, the state's profitability is judged by the level of GDP.
GDP (gross domestic product) - nominalThe cost of all products produced in the state for one year. A derivative is the GDP per capita index - this is the indicator that is taken into account when assessing the level of the economy (profitability including) by the United Nations (UN).
Some economists use instead of the indicatorThe national income of the state is the concept of GNP (gross national product), which takes into account not the value of all products produced in the territory of the state, but the value of all products produced by the residents of the state around the world.
The most profitable states
The most profitable state at the momentAre the United States of America with a national income of 16 trillion dollars. The countries of the European Union (EU) have in aggregate a trillion more - $ 17 trillion (economic centers - Great Britain, Germany, Italy). China and Japan have $ 7 trillion, Russia, Spain and France - about two.