Saturday, July 28, 2012

More Jobs for Less


A PUZZLE: since last quarter, 181,000 more Brits are in work, but output is down 0.7%. What are these people doing, you might ask. The caveats are that the quarterly employment figures are from March to May, while GDP is measured April to June - and subject to revisions. But the enigma remains. Why, to put it crudely, are we consistently having more jobs and less stuff being produced?
The employment figures are convenient for the Chancellor George Osborne, who can wheel around to different television studios and say, "Nearly 400,000 more are in jobs since we came into office." But all the while, the economy has shrunk by 0.3% since May 2010.
There are three responses to this:
(1) Growth is being underestimated in the statistics. The Office of National Statistics (ONS) constantly revises its forecasts. At the start of the downturn, Q2 2008 GDP growth was first estimated to be 0.2%; the estimate is now -1.3%, a considerable quarterly plunge. Had policymakers known this at the time, they might have responded differently. This means we might see this quarter's growth revised up in future. The average absolute revision since Q1 2005 has been 0.4%, which means commentators could currently be arguing over the head of a pin. Nonetheless, the gap between GDP and jobs cannot be wholly explained by systemic underestimation.

Financial Statement


Financial Statements
       Financial statements are written reports of financial affairs of a company.
       Such companies’ reports communicate the result of its business operations for a particular period of time and its financial position at the end of that period.
       Financial Statements
       Financial statements of the company include:
      Balance Sheet
      Profit & Loss Account
      Trading Account
      Cash Flow Statement
      Profit & Loss Appropriation Account

Users of Financial Statements
       Owners and managers
       Employees
       Prospective investors
       Financial institutions
       Government
       Creditors
       Others

Objectives of Financial Statements
        To provide financial information to users.
        To provide useful financial information for predicting, comparing and evaluating potential cash flow of a business.
        To help in knowing earning power of a company.
        To help in judging management’s ability to utilize resources effectively.
        To provide statement of financial position of the company concerning the assets and liabilities of the business.
        To provide the financial statement in periodic basis so that the comparisons of progress can be made.
        To compare with competitors.
        To provide necessary information for financial forecasting.
        To provide required data for research.

Balance Sheet
       The balance sheet is a snapshot of the firm’s assets and liabilities at a given point in time
       Assets are listed in order of liquidity
      Ease of conversion to cash
      Without significant loss of value
       Balance Sheet Identity
      Assets = Liabilities + Stockholders’ Equity
        Net Working Capital
       Current Assets – Current Liabilities
       Positive when the cash that will be received over the next 12 months exceeds the cash that will be paid out
       Usually positive in a healthy firm
        Liquidity
       Ability to convert to cash quickly without a significant loss in value
       Liquid firms are less likely to experience financial distress
       But liquid assets earn a lower return
       Trade-off to find balance between liquid and illiquid assets

Market Vs. Book Value
       The balance sheet provides the book value of the assets, liabilities and equity.
       Market value is the price at which the assets, liabilities or equity can actually be bought or sold.
       Market value and book value are often very different. Why?
       Which is more important to the decision-making process?

Income Statement
       The income statement is more like a video of the firm’s operations for a specified period of time.
       You generally report revenues first and then deduct any expenses for the period
       Matching principle –shows revenue when it accrues and match the expenses required to generate the revenue



Statement of Cash Flows
       Is used to help answer questions such as:
      Is the firm generating enough cash to purchase the additional assets required for growth?
      Is the firm generating any extra cash that can be used to repay debt or to invest in new products?
       Such information is useful both for managers and investors

Statement of Retained Earnings
       Shows how much of the firm’s earnings were retained, rather than paid out as dividends
       A positive number in the retained earnings account indicates only that in the past the firm earned some income

Statement of Cash Flows
       Summarizes the changes in a company’s cash position
       The statement separates activities into three categories, plus a summary section:
      Operating activities
      Investment activities
      Financing activities
       Operating activities
       Includes:
      net income,
      depreciation,
      changes in current assets and liabilities other than cash,
      short-term investments and
      short term debt
       Investing activities
       Includes:
      investments in fixed assets
      or sales of fixed assets

       Financing activities
       Includes:
      Raising cash by selling short-term investments or by issuing short-term debt
      Long term debt, or stock
      Also because both dividends paid and cash used to buy back outstanding stock or bonds reduce the company’s cash, such transactions are included here

Friday, July 27, 2012

Classification of Investment Proposals


Classification of investment proposals :-


There are different types of capital projects. Project may be to install new plant and equipment or it may be to replace existing one. It may be to start a new business. There may be a number of independent projects as well as mutually exclusive projects. Some project may be dependent each other. In short there are varieties of projects and they are classified in the following categories:

i.                    Mutually exclusive investments – Mutually exclusive investments serve the same purpose & compete with each other. If one investment is undertaken, others will have to be excluded. Only one project is accepted among the mutually exclusive projects. For example if a cement factory is evaluating for truck or pulley system for bringing raw materials into factory then it can choose one from the alternatives. So, the company will choose the best one from the available alternatives.

ii.                  Independent investments – Independent investments serve different purposes & don’t compete with each other. In such a project, selection of one project does not affect the selection of other projects. In other words, approval of one project neither refutes another projects nor compels to approve it. That is independent projects are those projects whose cash flows are independent from one another. For example installation of brick factory and installation of sugar mill are independent projects. Approval or rejection of one project does not affect the decision process of other projects.

iii.                Contingent investments – Contingent investments are dependant projects, the choice of one investment will require that one or more other investments should also be undertaken. Decisions on contingent projects cannot be taken independently. For example construction of dam and cannel in a irrigation project.

iv.                Replacement projects: Sometimes due to the wear and tear, or due to the advent of new technology, existing machine or assets need to be replaced with new one. So, in replacement projects, serviceable equipment is replaced with new one.

v.                  Expansion  of the business: Expansion may be done in terms of  output of existing product, retail outlet or distribution channel. The available capacity may not be sufficient to meet the growing demand for the existing products. In such a case production capacity should be added to the existing one to meet the growing demand for the product. Similarly, management may expand its business in different geographical regions and open new outlets. All these projects fall under expansion projects.

Business Cycle - Q&A


(a)          What is meant by stock market boom?
Stock market boom is the sustained periods of rising real stock prices and asset prices. Stock market booms tend to occur during periods of above-average growth of real output, and below-average and falling inflation. Stock Market booms are associated with the business cycle, arising when the output or Real GDP growth is above average which means during periods of expansion or recovery, ending when Real GDP slows or declines.

(b)          Why may a boom be accompanied by a widening current account deficit?
Current account deficit occurs when a nation’s total import of goods, services and transfers is greater than the nation’s total export of goods, services and transfers. It reflects a surge in investment spending caused by accelerating productivity. But producing more goods and services in the future requires current investment. Thus, the increase in productivity raises domestic investment spending, causing total domestic spending to exceed domestic production in the short run and to cover the excess of domestic spending over production, the country imports more goods and services than it exports. In particular, the surge in investment may increase the demand for imported capital goods.

(c)          Describe the features of an economic boom.
Economic boom is the period that follows recovery phase in a standard economic cycle. It is an upturn in the business cycle during which real GDP rises. Hence, the following features are observed during the stage of economic boom:
  GDP Growth faster than the regular trend
  Rising Aggregate Demand
  Increase in employment, Real Wages and Disposable Income
  Increase in Government Revenue
  Threat of Demand pull and Cost Push Inflation

(d)          Which phase follows the boom?
The boom-bust cycle is an episode which is characterized by a sustained rise in several macroeconomic indicators and followed by a sharp and rapid contraction. After the economic boom, there is an increase in credit prices and the value of assets prices might collapse which ultimately causes a considerable reduction in investment and fall in consumption and then, lead to a recession. Thus, recession is the phase after boom.
(e)          Why might an economic boom not be accompanied by inflation?
Economic boom is not likely to be accompanied by inflation as increase in money supply increases aggregate demand. However, shrinking the money supply may keep the inflation under check but, it increases the cost of borrowing which is supported by the stimulation of supply side factors, i.e. cutting taxes on capital investment which would foster job creation or employment. Also, it may bring the increase in labor productivity (output per worker) through investment in capital goods, technological breakthroughs etc.

(f)           Explain what is likely to bring an economic boom to an end?
Usually the demand pull inflation and cost push inflation causes the economic boom to come to an end. When the AD exceeds the SRAS for a prolonged period of time, the inflation rises to above the normal rate forcing the value of money to decline often explained by the increased burden on the limited resources regardless of the economic growth and capability of a nation. This results in government intervention and government controls the supply of money which ultimately tightens the money deposit in the market and thus decreases the credit creation. And when the money supply is decreased, the investment rate also decreases along with decrease in consumption which ultimately forces the economy to go on a depression.

(g)          Explain how strong exchange rates suppress inflationary symptoms.
Exchange Rate is the external value of a nation’s money in terms of how much of the other currency it can buy. When the exchanges rates become stronger, the value of the currency of a country compared to other country rises which results in the foreign good being cheaper since their money value is less. Now the domestically produced goods will be valued higher than the imported goods, so more imported goods are likely to be bought which causes the demand for domestically produced goods to decrease which will force the domestic producers to cut down their prices by lowering their cost in order generate customers. When the prices are lowered by the domestic producers, inflation is suppressed. Hence a strong exchange rates suppresses inflation.





Productivity


What is meant by productivity?
The amount of total output produced per unit of a total input which could be labor, equipment and capital is called productivity. It is a measure of the efficiency of production. The productivity could be measured on the basis of number of hours the firm takes to produce goods, could be measured on the basis of revenue generated by an employee etc.
Discuss the relationship between productivity and economic growth.
            Economic growth is defined as the increase in the real national product or the output over time. It should mean that an ever increasing quantity of goods and services is available to meet the economy’s needs over time. Whereas, the productivity means total output produced per unit of input.
            Economic growth over time is either due to the improvement in the productivity of given inputs or it due to the quantitative increase in economy’s factor endowments or due to the combination of both these factors. For e.g.: while the economy’s total labor force increases over time its productivity may also increase. The performance of economy’s capital stock may improve while it grows over time. Whatever be the factors responsible for economic growth, it will be reflected in the upward shift of the production possibilities curve
At the national level, productivity growth raises living standards because more real income improves people’s ability to purchase goods and services, enjoy leisure, improve housing and education and contribute to social and environmental programs. Productivity growth is important to the firm because it means that the firm can meet its growing obligations to customers, suppliers, workers, shareholders and governments’ taxes and regulation and still remain competitive or even improve its competitiveness in the market place.
            Thus, both have the positive impact in the development of the economy.
Discuss two factors, other than increase in productivity, which could cause economic growth.
            Economic growth means there is an increase in national output and national income. One of the factors that cause economic growth is increase in productivity that is the increase in aggregate demand and increase in aggregate supply.
            The other two factors that cause economic growths can be broadly classified into tangibles and intangibles.
 The tangible cause includes economy getting closer to full employment, technological advancement, capital increment etc. Intangibles include the property rights structure, which directly affects individuals’ incentives to apply the tangibles to the production of goods and services People must be motivated to put them all together without which no amount of labor, capital, and technological advances can do it alone.  
Distinguish between human and physical capital.
            Capital is any resource necessary to produce the finished goods. The differences between human and physical capital are:
Human capital refers to the investment in education, skills and experience of people in the labor force. At the beginning to work, people lack significant human capital. It is the labor required to directly contribute to the production of the goods. For e.g.: an engineer in the production of a car.
On the contrary, physical capital refers to investment in infrastructure and productive physical plants and equipments. Firms use physical capital to produce other items. It is the contribution of inanimate objects in the production of a good. For e.g.: a crane, a machine etc.
Combining workers with more human and physical capital tends to increase their as well as firm’s productivity.

Why might productivity be lower in the public than in the private sector?
The value of an average government worker's labor is not equal to that of an average private sector worker with similar education and work experience. This is because private sector workers tend to be more productive. They work for more time than that of the public sector employee. Because of which the productivity tends to be more.
Even on an hour-for-hour basis, one would expect private sector workers to be more productive due to the lack of competitive forces in government. Private sector businesses face constant pressures of competition to innovate and improve their goods and services, lest they lose business to their competitors. Government agencies, by contrast, are typically monopolies protected by law, and thus are not subject to such competitive incentives and pressures.
         


Most dangerous game - Summary


"The Most Dangerous Game" opens with a conversation between two men, Whitney and Rainsford. The pair are on a yacht headed to Rio. At the time of the story, they find themselves somewhere in the Caribbean. Both men are aficionados of big-game hunting. As such, they converse about the ability of an animal to understand the hunt. Rainsford is of the opinion that animals are incapable of feeling or understanding any human emotion.
Shortly after their discussion, Whitney retires for the evening. Rainsford decides to stay on deck to smoke his pipe. He suddenly hears the sound of gunshots and in his attempts to get a better glimpse in the direction of the sound, he falls into the water. After a brief moment of panic, Rainsford rallies and decides to swim toward the source of the gunshots. When he finally makes it ashore, he falls asleep.
The next morning he decides to investigate his surroundings. He finds a pool of blood and surmises that it is from the prey that was shot the night before. Near the blood he sees the footprints of hunting boots. He elects to follow them. After a long hike Rainsford arrives at a palatial estate. He is greeted at the door by a large man wielding a gun. A second man enters and explains that his assistant, Ivan, is deaf and dumb. The man is dressed elegantly and has an air of sophistication about him. He introduces himself as General Zaroff.
Zaroff is familiar with Rainsford's book on hunting snow leopards. After getting settled, Rainsford and Zaroff dine together and discuss the merits of hunting. It is during this conversation that Rainsford learns that Zaroff hunts men on the island. As a result of becoming bored with the available game in the world, Zaroff has turned to hunting those that can reason and present a greater challenge. Rainsford is mortified by Zaroff's revelation. Zaroff invites Rainsford to hunt with him but Rainsford declines citing exhaustion.
That night Rainsford is unable to sleep. The next day he learns that he is either to serve as Zaroff's newest prey or fall into the burly, violent hands of Ivan. He elects the former and immediately sets off into the jungle. After a few hours of zigzagging through the dense jungle, he climbs a tree to hide from his adversary. Incredibly, despite the elusive trail, Zaroff is able to easily find Rainsford. However, in order to prolong the fun of the game, Zaroff leaves Rainsford without harming him.
Rainsford panics and is subject to a few other encounters with Zaroff. Each time he gets closer and closer to defeating his foe through the use of primitive traps. Unfortunately, he is unable to trap his pursuer. He does manage to kill one of Zaroff's prized dogs and Ivan. In the final chase, Rainsford dives off the edge of the cliff into the ocean. Zaroff is disappointed to have lost his worthy adversary and returns to his house crestfallen.
After a hearty meal and much reminiscing of the day's events, Zaroff decides to retire for the evening. Upon entering his bedroom, he is confronted by Rainsford who has been hiding behind the bed curtains. Zaroff is delighted that he has been defeated. However, Rainsford is not willing to let the game end there. He challenges Zaroff to one final duel. Zaroff accepts and says that whoever loses shall be fed to the dogs, the winner is to sleep in Zaroff's bed. The story ends with an indirect ending-- Rainsford cites that he had never slept in a better bed.

Communist manifesto - Summary


The Communist Manifesto
1.      History of class struggle
2.      They fought constantly until, eventually, they either destroyed themselves or transformed society into a new and better stage.
3.      Manifold gradation of social rank (Rome and middle age)
4.      Bourgeois sprang from the ruins of feudalism. New forms of oppression
5.      Simplified antagonism with the splitting into two great class: Bourgeois and Proletariat
6.      Things bourgeoisie developed…
7.      Feudal system not sufficient, manufacturing system established
8.      Then steam and machinery
9.      Various adv due to discovery of America and industrial revolution; This development has, in its turn, reacted on the extension of industry; and in proportion as industry, commerce, navigation, railways extended
10.  Buorgeoise the product of long course of development of a series of revolutions in the modes of production and of exchange.
11.  Bourgeoisie was accompanied by a corresponding political advance of that class. The executive of the modern state is but a committee for managing the common affairs of the whole bourgeoisie.
12.  The bourgeoisie, historically, has played a most revolutionary part.
13.  Torn asunder feudal tie that bound man to his “natural superiors”; and has left remaining no other nexus between man and man only self-interest of "cash payment". No religious fervour, chivalrous enthusiasm, of philistine sentimentalism but only egotistical calculation. It has resolved personal worth into exchange value- Free Trade. In one word, for exploitation, veiled by religious and political illusions, it has substituted naked, shameless, direct, brutal exploitation.
14.  All respected jobs into paid wage labourer.
15.  Family relation into money relation
16.   
17.  The bourgeoisie cannot exist without constantly revolutionising the instruments of production, and thereby the relations of production, and with them the whole relations of society.
All relations, venerable prejudices and opinions, are swept away
 All that is solid melts into air, all that is holy is profaned,
Man is at last compelled to face with sober senses his, real conditions of life, and his relations with his kind
18.  Bourgeois have to globalize
19.  Replace all old forms by new when they globalize
20.  Barbarians into civilization with cheap prices of commodities\
Compels them to become bourgeois themselves. In one word, it creates a world after its own image.
21.  One dependent on the other
22.  It has agglomerated population, centralized the means of production, and has concentrated property in a few hands. The necessary consequence of this was political centralization.  Power in hands of few
23.  Many invention that past generation couldn’t discover
24.  Feudal way were creating obstacles so burst asunder
25.  Into their place stepped free competition, accompanied by a social and political constitution adapted in it, and the economic and political sway of the bourgeois class.
26.  A similar movement is going on before our own eyes: bourgeois and proletariat.
The history of industry and commerce is but the history of the revolt of modern productive forces against modern conditions of production, against the property relations that are the conditions for the existence of the bourgeois and of its rule.
In these crises, there breaks out an epidemic that, in all earlier epochs, would have seemed an absurdity - the epidemic of over-production.
There is too much civilization, too much means of subsistence, too much industry, too much commerce.
The productive forces at the disposal of society no longer tend to further the development of the conditions of bourgeois property; on the contrary, they have become too powerful for these conditions, by which they are fettered, and so soon as they overcome these fetters, they bring disorder into the whole of bourgeois society, endanger the existence of bourgeois property. The conditions of bourgeois society are too narrow to comprise the wealth created by them. And how does the bourgeoisie get over these crises? On the one hand by enforced destruction of a mass of productive forces; on the other, by the conquest of new markets, and by the more thorough exploitation of the old ones. That is to say, by paving the way for more extensive and more destructive crises, and by diminishing the means whereby crises are prevented.

27.  The weapons with which the bourgeoisie felled feudalism to the ground are now turned against the bourgeoisie itself
28.  It has also called into existence the men who are to wield those weapons - the modern working class - the proletarians.
29.  Workers equal to commodity
30.  He becomes an appendage of the machine. Wage only to the means of subsistence that he requires for maintenance, and for the propagation of his race.  in proportion as the use of machinery and division of labour increases, in the same proportion the burden of toil also increases, whether by prolongation of the working hours, by the increase of the work exacted in a given time or by increased speed of machinery, etc.
31.  Hierarchy.
 Not only are they slaves of the bourgeois class, and of the bourgeois State; they are daily and hourly enslaved by the machine, by the overlooker, and, above all, by the individual bourgeois manufacturer himself.
32.  After getting low wage that portion also taken by shopkeeper  and others of bourgeois society
33.  Many people fall under the proletariat
34.   With its birth begins its struggle with the bourgeoisie. They direct their attacks not against the bourgeois conditions of production, but against the instruments of production themselves; they destroy imported wares that compete with their labour, they smash to pieces machinery, they set factories ablaze, they seek to restore by force the vanished status of the workman of the Middle Ages.
35.  the workers begin to form combinations (Trades' Unions) against the bourgeois.
Now and then the workers are victorious, but only for a time. The real fruit of their battles lies, not in the immediate result, but in the ever expanding union of the workers. into one national struggle between classes.
 But every class struggle is a political struggle.
36.  This organisation of the proletarians into a class, and, consequently into a political party, is continually being upset again by the competition between the workers themselves.
 But when it  rises up again, stronger, firmer, mightier, It compels legislative recognition of particular interests of the workers, by taking advantage of the divisions among the bourgeoisie itself.
37.  The bourgeoisie finds itself involved in a constant battle. At first with the aristocracy; later on, with those portions of the bourgeoisie itself, whose interests have become antagonistic to the progress of industry; at all time with the bourgeoisie of foreign countries.
 In all these battles, it sees itself compelled to appeal to the proletariat, to ask for help, and thus, to drag it into the political arena.
The bourgeoisie itself, therefore, supplies the proletariat with its own elements of political and general education, in other words, it furnishes the proletariat with weapons for fighting the bourgeoisie.
38.  The ruling class  supply the proletariat with fresh elements of enlightenment and progress.
39.  Finally, in times when the class struggle nears the decisive hour of dissolution going on within the ruling class, a small section of the ruling class cuts itself adrift, and joins the revolutionary class.
Just as, therefore, at an earlier period, a section of the nobility went over to the bourgeoisie, so now a portion of the bourgeoisie goes over to the proletariat, and in particular, a portion of the bourgeois ideologists, who have raised themselves to the level of comprehending theoretically the historical movement as a whole.
40.  Proletariat alone is a really revolutionary class. The other classes decay and finally disappear in the face of Modern Industry
41.  The lower middle class, the small manufacturer, the shopkeeper, the artisan, the peasant, are  not revolutionary, but conservative or  reactionary
42.  The "dangerous class’ are bribed tool of Bourgeois
43.  The proletarian is without property; his relation to family.
 Law, morality, religion, are to him so many bourgeois prejudices, behind which lurk in ambush just as many bourgeois interests.
44.   The proletarians cannot become masters of the productive forces of society, except by abolishing their own previous mode of appropriation, and thereby also every other previous mode of appropriation.
 They have nothing of their own to secure and to fortify; their mission is to destroy all previous securities for, and insurances of, individual property.
45.  All previous historical movements were movements of minorities, or in the interest of minorities. The proletarian movement is the self-conscious, independent movement of the immense majority, in the interest of the immense majority. The proletariat, the lowest stratum of our present society, cannot stir, cannot raise itself up, without the whole superincumbent strata of official society being sprung into the air.
46.  Communist are accused of taking away property earned by hard work
47.  But the development of industry has already done that to a great extent
48.  Or do you men private property of Bourgeois
49.  No property for labourers
50.  You say this is abolition of individuality and freedom
51.    
52.  Freedom developed by B
53.   But in your existing society, private property is already done away with for nine-tenths of the population; its existence for the few is solely due to its non-existence in the hands of those nine-tenths. 
54.    
55.   U say individuality vanished with property
56.  That means individual equals B
57.  It only deprives him of the power to subjugate the labour of others by means of such appropriations.
58.  It has been objected that upon the abolition of private property, all work will cease, and universal laziness will overtake us.
59.  sheer idleness; for those those of its members who work, acquire nothing, and those who acquire anything do not work.
60.  the disappearance of class culture is to him identical with the disappearance of all culture.
61.  That culture, the loss of which he laments, is, for the enormous majority, a mere training to act as a machine.
62.  the standard of your bourgeois notions of freedom, culture, law, &c.are your very ideas
63.  The selfish misconception that induces you to transform into eternal laws of nature and of reason, the social forms springing from your present mode of production and form of property
What you see clearly in the case of ancient property, what you admit in the case of feudal property, you are of course forbidden to admit in the case of your own bourgeois form of property.
64.  The Communists are further reproached with desiring to abolish countries and nationality.
65.  The working men have no country. We cannot take from them what they have not got.
Since the proletariat must first of all acquire political supremacy, must rise to be the leading class of the nation, must constitute itself the nation, it is so far, itself national, though not in the bourgeois sense of the word.
66.  National differences and antagonism between peoples are daily more and more vanishing, owing to the development of the bourgeoisie, to freedom of commerce, to the world market, to uniformity in the mode of production and in the conditions of life corresponding thereto.
67.  The supremacy of the proletariat will cause them to vanish still faster. United action, of the leading civilised countries at least, is one of the first conditions for the emancipation of the proletariat.
68.  the antagonism between classes within the nation vanishes, the hostility of one nation to another will come to an end.
69.  The charges against Communism made from a religious, a philosophical and, generally, from an ideological standpoint, are not deserving of serious examination.
70.  changes with every change in the conditions of his material existence, in his social relations and in his social life doesn’t change it
71.  all these ideas have been  the ideas of its ruling class.
72.  Ideas replaced by new ones.
73.  Christianity.
Only forms change.
74.  religious, moral, philosophical, and juridical ideas have been modified in the course of historical development. But religion, morality, philosophy, political science, and law, constantly survived this change
75.  eternal truths, such as Freedom, Justice, etc., that are common to all states of society. But Communism abolishes eternal truths, it abolishes all religion, and all morality, instead of constituting them on a new basis; it therefore acts in contradiction to all past historical experience."
76.  The history of all past society has consisted in the development of class antagonisms, antagonisms that assumed different forms at different epochs.
77.   
78.  The Communist revolution is the most radical rupture with traditional ideas.
79.   
80.  We have seen above, that the first step in the revolution by the working class is to raise the proletariat to the position of ruling class to win the battle of democracy.
81.   
82.  riot
83.  These measures will, of course, be different in different countries.
84.  Nevertheless, in most advanced countries, the following will be pretty generally applicable:
85.  1. Abolition of property in land and application of all rents of land to public purposes.
2. A heavy progressive or graduated income tax.
3. Abolition of all rights of inheritance.
4. Confiscation of the property of all emigrants and rebels.
5. Centralisation of credit in the banks of the state, by means of a national bank with State capital and an exclusive monopoly.
6. Centralisation of the means of communication and transport in the hands of the State.
7. Extension of factories and instruments of production owned by the State; the bringing into cultivation of waste-lands, and the improvement of the soil generally in accordance with a common plan.
8. Equal liability of all to work. Establishment of industrial armies, especially for agriculture.
9. Combination of agriculture with manufacturing industries; gradual abolition of all the distinction between town and country by a more equable distribution of the populace over the country.
10. Free education for all children in public schools. Abolition of children's factory labour in its present form. Combination of education with industrial production, &c, &c.
86.  in the course of development, class distinctions have disappeared, and all production has been concentrated in the hands of a vast association of the whole nation.
 If the proletariat can makes itself the ruling class and sweeps away by force the old conditions of production, then it will, along with these conditions, have swept away the conditions for the existence of class antagonisms and of classes generally, and will thereby have abolished its own supremacy as a class.
87.  In place of the old bourgeois society, with its classes and class antagonisms, we shall have an association, in which the free development of each is the condition for the free development of all.
88.  S
89.  S
90.  S
91.  Openly state that they will win at any cost
92.  All working men should unite