The state is a system of regulation of the economic and social and legal life of society. For the life support of society, the state needs money. Highly profitable states can develop education, medicine, science and infrastructure more effectively than others.
State cash flows
The state is a huge enterprise. Like any enterprise, the state has expenses and revenues. The national income of the state consists of the net profits of enterprises, the income of their owners, workers' earnings and rent payments received by the owners of premises. Each state has a unique business strategy and a number of "trump cards" inherent in its economy. Thus, Switzerland has a reputation for being an "international banker" and for 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 actively uses the raw material complex and agriculture.
Where does the profit go
States manage their national income in different ways. In addition to the level of welfare of citizens, the states are left with tax surpluses and revenues received from the lease of municipal real estate. The state invests money in debt bonds of other countries, shares of companies in the real sector. A lot of money is spent on tourist 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 foreign exchange reserve). This is a kind of money "for a rainy day" - in case of crises, natural disasters, accidents, etc.
GDP and GNP
Also, the profitability of the state is judged by the level of GDP.
GDP (Gross Domestic Product) - the nominal value of all products produced in the state in one year. The derived value is the indicator of GDP per capita - this indicator is taken into account when assessing the level of the economy (including profitability) by the United Nations (UN).
Some economists use the concept of GNP (gross national product) instead of the indicator of the national income of the state, 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 residents of the state around the world.
The most profitable states
The most profitable state at the moment is the United States of America with a national income of $ 16 trillion. The countries of the European Union (EU) have a combined trillion more - $ 17 trillion (the centers of the economy are Great Britain, Germany, Italy). China and Japan each have $ 7 trillion, Russia, Spain and France - about two.
