In macroeconomics, there is such a thing as national income. This is an economic indicator that characterizes the totality of the primary income of all residents of the country. At the same time, this indicator is calculated as the sum not only according to the results of economic activity within the borders of the country, but also abroad (the income of residents who have gone abroad is considered), as well as income paid to other states.
National income is the sum of the country's primary cash receipts that are included in the
gross national product and those profits that were received from abroad, minus the funds given abroad. This indicator can also be studied as the sum of all incomes (wages, payments on shares, bonds, interest on deposits, etc.) of
material production sectors
.For the first time, the founders of Marxism-Leninism began to consider national income in isolation from productive activity. The pioneer, “father” of this indicator was W. Petit, an English economist. Further, his teachings were developed by the physiocrats, A. Smith and D. Ricardo. However, none of them had the strength to fully understand such a concept as national income. Only K. Marx managed to do this. It was he who began to consider not only the incomes of all segments of the population, but also the very cost of the output. Marx was the first to consider separately such a concept as a consumption fund and such a concept as an accumulation fund. He also gave a full description for each indicator, explaining their functional load. The legendary teaching of K. Marx was continued by V. Lenin.
At this stage, there are a huge number of interpretations of the judgments of the great creators, but all of them, in the end, have the same meaning.
National income is the difference between net national product and indirect taxes. It also includes subsidies and grants issued by the state to business. It will be similar if we consider this indicator as a pure product of the whole society or a newly created value. Net national product (NNP) is an indicator representing the difference between a country's gross national income and depreciation.
Various methods can be used to calculate national income. In the USSR, the production method was used. When it summarizes the gross output of each industry, each production related to different types of ownership. After this, the next step is the calculation of all material costs expended for production. When subtracting from the gross output the found amount of material costs, the desired value is obtained - national income. The formula is as follows:
VP - MZ = ND, where
VP - gross output; MZ - material costs; ND - national income.
After analyzing each industry and adding up the resulting indicators, you can find the national income of the country.
Gross output created during the year consists of two parts - the newly created and previously created product. For example, the furniture factory takes into account accessories, various components that were used in the manufacture of furniture. But these details have already been taken into account at the factory. Therefore, when calculating gross output, a double count is possible, which cannot be said about national income (after all, all costs are excluded).