Remuneration and violation of the proportionality of commodity and money supply
Since wages are paid with a delay of only a few days after accrual, most enterprises cannot make it out of the proceeds: the period of production and sale of products significantly exceeds the delay time. Therefore, wages are not paid out of revenue, but from the so-called sources of working capital formation: own working capital, bank loans, etc.
Thus, wages are paid in advance. The equivalent of wages received as part of the proceeds is not directed to payment, but to replenish the source from which the advance payment was made. This already implies the possibility of violating the proportionality of the commodity and money supply: money enters the sphere of circulation at a time when its commodity equivalent is still at the production stage. This possibility becomes a reality in the context of a slowdown in the turnover of working capital, that is, an extension of the shelf life of products at the stages of work in progress, finished products in a warehouse, shipped goods or goods in the form of production inventory at enterprises that make up the next link in the production of final products. According to our calculations, during the period 1970-1987, the slowdown in the turnover of working capital in the national economy of the USSR amounted to 63 days. It is quite obvious that by 1987, the state of money circulation could not but deteriorate: money in the amount of more than two months' wages entered circulation without adequate commodity coverage. The main source of their payment was a bank loan issued against increased working capital balances. This was one of the forms of manifestation of the principle of "living in debt".
In order to accelerate the turnover of working capital, the procedure for short-term bank lending has been changed. The planned loan amount for the totality of inventories and production costs, which, as a rule, cannot be exceeded when the loan is actually issued, is determined for each team, taking into account the requirement to ensure faster sales growth compared with an increase in planned working capital balances. However, the effectiveness of such a lever is undermined by the discrepancy between the methodology of planning and issuing a loan: the planned loan amount is determined based on all production costs, including labor, and its issuance is carried out only by paying suppliers' bills, that is, it is aimed at covering material costs. When the planned loan amount is fully used for this purpose, enterprises are actually over-credited: due to the bank's loans, over-planned production stocks are formed. At the same time, many enterprises do not experience difficulties in paying wages, since the practice of credit planning does not ensure reliable accounting of other sources of working capital formation — temporarily available funds from special funds and reserves. Before we know how to get promo code on 1xbet, please register. Registration of a new account on the 1xbet Bangladesh website is carried out using a valid email address. It will take a little longer compared to instant or phone number. The 1xbet promo code india you will receive an increased welcome bonus of 130% on your deposit up to INR 26,000. For beginners, there is a bonus in the form of a 1xbet promo code on the first deposit on the 1xBet website.
Thus, wages are paid in advance. The equivalent of wages received as part of the proceeds is not directed to payment, but to replenish the source from which the advance payment was made. This already implies the possibility of violating the proportionality of the commodity and money supply: money enters the sphere of circulation at a time when its commodity equivalent is still at the production stage. This possibility becomes a reality in the context of a slowdown in the turnover of working capital, that is, an extension of the shelf life of products at the stages of work in progress, finished products in a warehouse, shipped goods or goods in the form of production inventory at enterprises that make up the next link in the production of final products. According to our calculations, during the period 1970-1987, the slowdown in the turnover of working capital in the national economy of the USSR amounted to 63 days. It is quite obvious that by 1987, the state of money circulation could not but deteriorate: money in the amount of more than two months' wages entered circulation without adequate commodity coverage. The main source of their payment was a bank loan issued against increased working capital balances. This was one of the forms of manifestation of the principle of "living in debt".
In order to accelerate the turnover of working capital, the procedure for short-term bank lending has been changed. The planned loan amount for the totality of inventories and production costs, which, as a rule, cannot be exceeded when the loan is actually issued, is determined for each team, taking into account the requirement to ensure faster sales growth compared with an increase in planned working capital balances. However, the effectiveness of such a lever is undermined by the discrepancy between the methodology of planning and issuing a loan: the planned loan amount is determined based on all production costs, including labor, and its issuance is carried out only by paying suppliers' bills, that is, it is aimed at covering material costs. When the planned loan amount is fully used for this purpose, enterprises are actually over-credited: due to the bank's loans, over-planned production stocks are formed. At the same time, many enterprises do not experience difficulties in paying wages, since the practice of credit planning does not ensure reliable accounting of other sources of working capital formation — temporarily available funds from special funds and reserves. Before we know how to get promo code on 1xbet, please register. Registration of a new account on the 1xbet Bangladesh website is carried out using a valid email address. It will take a little longer compared to instant or phone number. The 1xbet promo code india you will receive an increased welcome bonus of 130% on your deposit up to INR 26,000. For beginners, there is a bonus in the form of a 1xbet promo code on the first deposit on the 1xBet website.