The Quality of Consumption Products

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The Quality of Consumption Products

The quality of products used by the population and by the country has an influence on the monthly cost of the country. The products that are consumed by the population are paid by the population and do not increase the monthly cost but there are many products that are used in health, education, government in general and in the army. The quality and cost of these products has a direct effect on the cost of health, education etc.

It is hard to measure what the cost increase will be if you increase the quality of the products that are purchased by the government, some experimenting could help but the cost increase depends on the size of the population and the change in the quality.

The quality of these products does have an influence on the welfare in the country. For example: if the quality of the products will increase by 100 points, the welfare index of the country will increase by an estimated 2.5 points. This in turn can increase production in the corporations by 1.1%.

It is not clear that the additional cost of products is fully compensated for by the increase in productivity. We will also do some measuring and may increase the advantage in even higher productivity.
It is important to realize that only a fraction of the increased cost for these products is paid for by the government and most of the cost is paid by the population spending most of its net salary buying these products and it has no impact on the government finances.

Summary: Increasing the quality of products purchased by the government is already increasing productivity and will become profitable for the country in the long run.

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