Twenty Five Theses on the State Activities in the Social Sphere
The article presents the author's version of the answers to five basic questions related to the activities of the state in the social sphere, namely, why it is necessary for the state to support the social sphere? What is the economic essence of the state social expenditures? How much budget money is needed? What methods of the state finance are efficient? What is the legal framework of the social sphere functioning? The answers to these general questions are based on the theory of the markets for the so called «protected goods» (opekayemiye blaga) that further develops the research on social dynamics. In connection with this the articles discusses the products of Baumol's economy, public and merit goods, formulates the criteria of treating goods and services as «protected goods» as well as a universal cause for public protection. Besides, it is analyzed some practical aspects of the new theory, that brings a new light on the main principals of functioning of the public sector and the state activities in general. This points, in the author's opinion, to the necessity to principally revise economic foundation of social policy and its legal regulation.