The Effect of Public Consumption Funds on Demand and Supply of Consumer Goods

Abstract

Under the conditions of commodity production existing in socialist society the distribution and transfer to consumers of public consumption funds is necessarily carried out through the use of commodity-money relations. This is expressed primarily in the fact that a considerable portion of the benefits which the working people receive from the public consumption funds are distributed in the form of various money payments (pensions, scholarships, grants). The money incomes received in this way are spent mainly on purchases of consumer goods at trade and public catering enterprises. The distribution and transfer to consumers of that part of the public consumption funds which is intended for collective consumption (consumption in kindergartens, nurseries, children's homes, boarding schools, vocational schools, hospitals, sanatoria, holiday homes, homes for the aged, etc.) is also carried out in a socialist society through the use, to some extent, of commodity-money relations. Outlays of funds of this kind by ...