Creative class and problems of public administration under the fourth industrial revolution

Hrymalyuk Andrew
Doctor of EconomicSciences, Professor of the Department of General Economic Theory and Economic Policy, Odesa National University of Economics, Odesa, E-mail:andreigrim01@gmail.com, ORCID ID: https://orcid.org/0000-0002-8323-9193

Nesenenko Pavlo
Candidate of Economic Sciences, Associate Professor of the Department of General Economic Theory and Economic Policy, Odesa National University of Economics, Odesa, E-mail:nppod@ukr.net, ORCID ID: https://orcid.org/0000-0001-6399-3511

Sukhova Tetyana
senior lecturer of the Department of General Economic Theory and Economic Policy, Odesa National University of Economics, Odesа, E-mail:negnoste02@gmail.com, ORCID ID: https://orcid.org/0000-0001-9208-8828

Cite this article:

Hrymalyuk A., Nesenenko P., Sukhova T. (2023) Creative class and problems of public administration under the fourth industrial revolution. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Kreatyvnyi klas ta problemy publichnoho upravlinnia v umovakh chetvertoi promyslovoi revoliutsii; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 9 (310), pp. 7-13.

Abstract

The article shows that in order to create adequate demand within the framework of the post-industrial model of economic circulation in the conditions of the fourth industrial revolution, it is necessary, first of all, large-scale state financing of the quaternary sector, which forms a source of financing the wages of employees employed in the field of fundamental science, culture, education, medicine, healthcare and other representatives of the creative class. In the event that the economic support of a deep technological transformation turns out to be beyond the power of the market mechanism, the fulfillment of this task will be forced to be undertaken by a social state of a new, post-industrial type, adequate for solving the macroeconomic problems of the 21st century. The most important feature of a post-industrial state may be the economically forced nationalization of automated production, which is necessary to create an adequate aggregate demand for its products. Such an objective necessity may arise in the event of an aggravation of the problem of markets for products of fully automated production in the future. A more likely scenario is a deep internal transformation of Western society, which most seriously affects its entire economic structure and, above all, the very model of the circulation of products and income. In such a new model of the economic cycle, a significant part of the revenue from the sale of products of automated production will be able to flow freely to the state budget and, thanks to this, be freely transformed into the wages of workers employed in the field of fundamental science, culture, education, medicine and health care, and, exactly on such scales, which are necessary to solve the market problem and at the same time are able to go far beyond the scope of tax revenues to the budget.

Keywords

model of economic circulation,public administration, fourth industrial revolution, quaternary sector, creative class, aggregate demand, automation.

JEL classification: B410, Н540; DOI: 10.32680/2409-9260-2023-9-310-7-13

UD classification: 330. 341.424: 351:342

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