Abstract
In the article the place, role and functions of families (households) as economic subjects of the market system are clarified. The interrelation, interdependence of categories of "savings", "investments" and "consumption" is defined. The importance and location of the internal investor in the investment process at the macroeconomic level is proved. The algorithm for determining the level of aggregate income of a family necessary for transition to the rank of an internal investor of the state is presented. Parallels are drawn between the author's theoretical and methodical approach proposed in the article and between the theories (laws, models) of a number of well-known economists, such as E. Engel, M. Tugan-Baranovsky, J. Keynes, P. Samuelson and others. The features of practical definition of the minimum level of the aggregate income of a family and a household for savings and investments for Ukrainian realities are revealed. The current and desired operating conditions and the results of financial and economic development of each of the interested parties are considered. In particular, for the population it is shown how, based on its real income, to identify and plan expenditures in order to move to investments. In addition, it is investigated: first, what exactly is the real minimum level of income per month will allow one person or a family (of two, three, four people) to survive in the economic conditions that defined public authorities and formed the market; secondly, what exactly need s a person or a household to be able to meet at an appropriate level of income; thirdly, what level of income will allow the population to save and convert these savings into investments (with their subsequent distribution for the development of domestic business and entrepreneurship). At the same time, it is shown how the state (on Ukrainian data) can influence the growth of domestic investment in order to reduce the deficit of financial resources for the development of business and the economy of the country.
Highlights
Income as an economic category is one of the main resources that materially ensures the existence of the population and contributes to the effective development of the state as a whole
A more significant factor characterizing the standard of living in the country and the welfare of its population is the opportunity to save under equal current economic conditions
For each country there is a structure of family expenses, in which it is important to allocate a component of savings, which under favorable conditions is transformed into investment, serve as a generator of economic development of the state
Summary
Income as an economic category is one of the main resources that materially ensures the existence of the population and contributes to the effective development of the state as a whole. 3. Aim of research Theoretical substantiation and practical formation of the algorithm for determining the minimum level of the aggregate family income necessary for its transition to the rank of the state’s domestic investor, with the subsequent distribution of these funds as additional capital investments in the development of domestic business and the economy (by the example of Ukraine). The abovementioned main provisions of classical theories explain the interconnection and interdependence of such categories as investment, savings, consumption and income, but in combination with contemporary facts are the most important argument for creating conditions for increasing domestic investment. Consumption is the main component of aggregate expenditure, and savings – when properly used, are transformed into investments, which are the condition for long-term economic growth It is this tandem in combination that creates the simplest model for determining income – the multiplier model. Given the dynamics of the minimum and average wages in Ukraine over the past 5 years (Table 1)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
